There are two types of cards that most people have in their wallets these days, credit cards and debit cards. There is a lot of debate about which is better option and which you should be carrying. This is not an easy question to answer and not really the right one to be asking.

Really you shouldn't be thinking of credit cards and debit cards as a choice that you have to make. You are probably going to want to have both of them since they do serve somewhat different purposes. There are going to be times when you are better off using a debit card and there will be times when you have to have a credit card. Therefore it just makes sense to have both of them in your wallet.

A credit card is one that grants you credit, when you use the card you are borrowing money. This is something that a lot of people seem to forget and it gets them into real trouble. The amount that you can borrow will be determined by your credit limit and each month as you pay your bill the amount that you have paid then becomes available to borrow again, this is called revolving credit. The thing that you have to keep in mind is that just because the credit card company gives you a certain credit limit doesn't mean that you can actually afford that amount. A lot of people get into financial trouble with credit cards because they make it so easy to spend more than you can afford.

A debit card although it appears similar to a credit card is quite a different thing. In this case you have to deposit the money into the account first and as you use the card money is debited. This means that you are not borrowing money but rather spending your own money. That also means that you can't run up debt nor will you have to pay any interest. In most cases you are better off using a debit card than a credit card, especially for day to day purchases. That being said there will be times when a credit card is a better option like when you are making a major purchase or when you are travelling.

There are advantages and disadvantages to both types of cards. The major advantage that a credit card offers is that will help you to build credit. When you want to make a major purchase like buying a house you are going to need to have good credit, this requires a credit history. Using a credit card responsibly can help you do this. The big downside of course is that you can run up debt that you can't pay and destroy your credit. The advantages and disadvantages of debit cards are pretty much the opposite, the won't affect your credit positively or negatively and you can't go into debt with them.