when you use a credit card you re essentially using a revolving loan the credit card company pays the merchant then bills you for the amount you repay it when you get your monthly statement if you don t repay the full amount you pay interest on the remaining portion the following month 7
some debit cards offer reward programs similar to credit card rewards programs such as 1 cashback on all purchases 8however rewards programs are more common with credit cards which can offer better terms with an introductory offer cash back rewards travel points and other perks by law you cannot be held responsible for more than 50 of fraudulent purchases made on a debit or credit card as long as you report the fraud in a timely manner however credit card companies often extend their protections to provide zero liability to cardholders 9you can get cash with both debit and credit cards but when you get cash using a credit card you re borrowing money with a cash advance if you use your credit card for cash you may pay interest on the funds starting right when you withdraw them you may also pay a transaction fee and pay a higher interest rate than you would on purchases 10you don t carry a balance on a debit card because each time you use it you re paying with money that already belongs to you so there are no interest charges pros and cons debit cardssafer than cash