When To Use A Credit Card Versus A Debit Card For Expenses

Credit card companies are constantly touting the benefits of their rewards programs, promising free flights, airport lounge access, exclusive restaurant reservations, and more for customers who choose to spend with them. It all sounds incredibly tempting — but what’s the catch? Surely, there has to be one, right?

If you’re new to the world of credit cards and aren't sure exactly how they work, it's helpful to be fully aware of what you’re getting into. There are so many ways for regular people with regular income sources to take advantage of the perks, but just as easily, credit card companies can make money off of you if you’re not careful. In some cases, it makes more sense to stick to debit to avoid the hassle. Before you sign on the dotted line and hand over that annual fee, make sure you’re prepared with a plan for how you’ll use your card responsibly.

Don’t Spend More Than You Can Pay Off Each Month

“Credit cards are a tool in the same way that hammers are a tool, and they're very effective when you need to nail something to the wall and are ...