Over the years, the UK has become a fairly reliant nation on paying for purchases with plastic, be it by credit or debit card, saving us the hassle of carrying cash, making countless ATM withdrawals or writing check after check. to go shopping.

Paying for purchases with a card is a very convenient and easy way to shop, saving you time and hassle. Paying by card also makes it easier to shop online or by phone, which have become popular ways to buy anything from groceries and vacations to clothes, gifts and more.

When it comes to which card to use to make purchases, preferences can differ from one consumer to another, and there are pros and cons to using debit and credit cards. Both offer ease and convenience, but there are a few points to consider when deciding whether to shop with a credit card or a debit card.

Credit cards

Credit cards allow the consumer to enjoy credit up to a specified limit and, depending on the card, may also offer other benefits such as extended interest-free periods, purchase protection, reward points, cash back and more.

Advantages of using a credit card

• Being able to pay for purchases without carrying cash or writing checks
• Being able to buy online or by phone
• Being able to buy items and enjoy interest-free credit for a certain period
• Being able to spread the cost of purchases over a long period
• Being able to enjoy credit up to your specified limit, making it easy to buy the things you want without having to wait and save
• Be able to benefit from rewards (subject to the card used) such as cash back, reward points or airline miles
• Wide variety of cards to fit most needs and circumstances, including those with bad credit to help them rebuild their credit

Cons of credit card use

• The risk of entering high levels of debt that become unmanageable
• Risk of credit card fraud
• Often being charged high interest rates on balances that are not paid in full each month

Debit cards

Debit cards are usually issued by your bank and allow you to enjoy the convenience and ease of using plastic to pay for purchases, but you must have the necessary funds in your account before you can spend with your debit card. You can enjoy some benefits with your debit card, such as extended purchase protection and emergency card replacement, although you should check the terms attached to your particular bank to see exactly what kind of benefits you have.

Advantages of using the debit card

• No risk of getting into debt, since you have to have the money in your account to be able to use the card
• Ease and convenience of paying by card without the need for cash or checks
• Being able to buy online or by phone
• Extended warranty on purchases with many debit cards

Disadvantages of using a debit card

• No line of credit, so you can’t spend unless you already have the funds
• Risk of debit card fraud
• No facility to distribute rebates on purchases
• No extra benefits like rewards or cash back