Penny for your Thoughts: Credit vs. Debit

When it comes to your everyday purchases what card comes out of your wallet?  Is it your credit or debit card that your fingers fumble for?  The debit card is so easy and so convenient that it may be your card of choice.  At Get Penny Wise we think you should take a good look at your spending habits and pick a rewards credit card that is well suited to you - these days some even allow you to choose the photo on the card!

If you are a die hard addict to your debit card know that with choosing this option you might be losing out. While you might be able to track your spending easily you are reaping no rewards for using your debit.  Several credit cards have perks that reward you from percentages back to 

points that are redeemable for gift cards, cash, etc.  If most of your money goes towards eating out check out the Citi Forward Visa card where restaurants earn you 5 points per dollar spent.  If your gas guzzler seems to be eating up all your cash you can check out the Discover Open Road card to get 5% back on your purchases (look for our upcoming review).  Once you analyze your spending you'll get a much better feel for what sort of rewards will be best for you.

When you whip out that debit card at the restaurant or when you're about to do some online shopping, give it a second though.  Your debit card is a direct line into your bank account: proceed with caution.  While you might have all the protection that a credit card offers if something happens and you account becomes overdrawn you might have a nightmare of red tape to weed through.  

Get Penny Wise Verdict - Credit Wins

If you are not carrying a balance and pay your bill in full each month a rewards card is the best way to be penny wise!  $500 a month in spending with 2% back would be $10 back.  That's $120 a year that could make its way back into your wallet.  

What card in your wallet gets the most usage?  Share your strategy in the comments.