Will That be Credit or Debit?

With the current credit crunch and the tenuous state of many people's finances, there has been a trend to ditch credit cards in favor of debit cards. Perceived as "safer," debit cards certainly have benefits over credit cards. But when it comes to personal finance safety, I prefer credit cards.

Every time you buy something with your debit card you are essentially handing out personal information directly linked to your bank account. Any shady individual armed with your debit card information would basically be a four digit pin away from free access to your savings.

While fraudulent use of debit cards is protected to some degree, imagine going to pay your rent only to find out your account had been zeroed. And while you wait for the bank to sort out the mess (and who knows how long that could take), you still have utilities, rent, and other bill collectors knocking who may not be sympathetic towards your empty account.

Credit cards, on the other hand, provide a "finance firewall" adding a robust layer of protection separating your bank information from would be intruders. Many credit card companies are very astute when it comes to identifying and notifying you of suspicious activity. On top of that, credit cards offer other advantages of such as rewards and extended warranties.

So next time you are asked "Credit or Debit?" I recommend going credit with the added caveat that credit cards definitely make sense in responsible hands that always makes sure to pay off monthly balances!