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What are the advantages of using a credit card over a debit card?
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The primary advantage of using a credit card instead of a debit card is that you have access to more spending power. With a credit card, you can make purchases up to your credit limit and not be limited by how much money you currently have in your account. Additionally, you may receive rewards or cash-back on certain types of purchases with a credit card. 2 Another benefit of using a credit card rather than a debit card is the convenience factor. Credit cards allow for easier payment flexibility since you don’t need to wait until your next paycheck to pay off your balance. You also won’t be subject to fees associated with debit cards such as insufficient funds or out-of-network ATM charges. 3 A third advantage of using a credit card is the potential to earn rewards. Depending on the type of credit card, you may be eligible for points or other incentives when making purchases. These rewards can help offset the cost of your purchases and give you an opportunity to save money.