Card Options

Credit cards vs. debit cards

Deciding when to use your debit card and when to use your credit card isn't a frivolous decision. A credit card is a "buy-now, pay-later" tool. A debit card is a "buy-now, pay-now" tool. Both cards can play major roles in your money-management plan.

A debit card is linked to your checking and/or savings accounts - in banking terms, deposit accounts. When you use a debit card, money is subtracted from your deposit account, generally a checking account. In contrast, a credit card is an unsecured loan that a financial institution provides to you as a payment convenience. Using a credit card means that you intend to repay the amount - plus interest if you do not repay the balance in full each month.