Which is better - Credit Card or Debit Card?

Hi Dion,

Personally, I believe that whether a Credit or Debit card is better for you is ultimately dependent on your spending patterns, and your self-control/discipline. Credit Cards definitely have better rewards- higher cashback and rebate rates, and I don't think there's such a thing as a miles debit card lol. Hence, you'd definitely get much better value for your money, especially if you have recurring expenses that you'll definitely be paying for.

However, the greatest pitfall of credit cards would be the "unlimited" spending power that comes with it. If you don't track your expenses extensively, there's a good chance that you'd end up spending far more than you'd like, or far more than you can afford. Hence, if you lack the discipline and self-control in this area, I'd suggest sticking to a debit card first!

I would say debit cards have lesser benefits as compared to credit card. the only outstanding benefit of debit cards is the rebate/cashback (but even so, there is usually a pretty high minmum spending per month) Also, for debit cards, you dont get deals and discounts from it and theres no points collection system.

However, credit cards also has its flaws where people can get carried away with it (overspending!). It is important to make sure you are capable to pay for your credit card bills. making sure you have your personal finances in check is important and as long as you set credit card limits within your financial means, all should be good.

There’s pros and cons for both cards!

Personally I was quite skeptical about having credit cards for a very long time because my parents were caught in credit card traps for more than 10 years - yes they are still trying hard to pay them off right now!

But I recently got myself DBS live fresh and the benefits are really quite amazing as compared to using a debit card. I set my card limit low and pay off the card fully every month. That’s how I control my usage.

No credit, no spending, simple!

Simply put
Debit - paying with what u have now
Credit - paying with what you think you have OR
Buy first pay later

So debit is good to confine your purchasing power