by Aidan Kang, CFA
Senior Writer
UPDATED: February 29, 2024

Nowadays, it’s widespread to pay for things by swiping a card. Cashless payments have rapidly become second nature for people who don’t want to go through their wallet for the payment amount, look for an ATM to withdraw, or carry large amounts of cash.

Credit card or debit card? Which card to use? Many people probably face this predicament. These cards look almost identical, with expiration dates, 16-digit card numbers, EMV chips, and magnetic strips. Even though there are significant upsides to using a credit card, there are a few times when pulling out your debit card may be better. Here are six unique perks to using a debit card.

Your Credit Score Won’t be Affected

Take note: You don't need a credit score to open a checking account and be provided with a debit card. Therefore, whether you’re trying to build credit or opening your first account, a checking account is an excellent place to put aside and manage your money.

When using a debit card, your money is taken directly from your checking account. Because debit cards are not a type of credit, your card activity doesn’t get chronicled or disclosed to the credit bureaus. As a result, it’ll never impact your credit score or appear on your credit report.

That means whether you’re withdrawing cash or making purchases, your debit card usage remains separate or detached from your credit history.

May Earn You Points or Rewards

Debit card rewards might not be as many as credit card rewards, but you can still yield points from day-to-day transactions or spending. A financial solution service such as offers a loyalty system or cashback rewards wherein debit cardholders rack up points that they can redeem for sales, discounts, and other perks. The rewards are bestowed on you by the issuer, not the store where you make purchases.

As such, you can earn points on many different transactions, from online purchases to dining out. Even though the debit card rewards might not be as significant as those given out by credit cards, they still offer valuable incentives for using your debit card for daily spending.

Debit Cards are Widely Accepted

Are you booking a trip to Japan? Buying a Taylor Swift: The Eras Tour concert ticket? Do you need to fill up your car in a gas station? Are you thinking of dining out at your favorite restaurant? Or are you going grocery shopping? Go ahead and use your trusty debit card as a payment method.

With a debit card, you don’t need to stress out if you have no more cash in your wallet. Knowing that payment is directly withdrawn from your account, you can quickly get through your procurements.

Moreover, debit card transactions are posted instantly, abstaining you from the hassle of incurring debt or managing payment deadlines like credit cards do.

What’s more, debit cards are accepted anywhere in the world. Your debit card lets you buy whatever you want, wherever your journey takes you.

Debit Cards can be Linked to Any Shopping App.

Debit cards can now be linked with many different shopping apps, giving you exceptional flexibility and convenience in managing your purchases. Whether you’re checking out grocery delivery services or scouring the latest deals on your favorite shopping app, linking your debit card to these platforms simplifies the checkout process and guarantees an impeccable shopping experience.

Integrating your card into these apps brings exclusive perks and benefits into the open, including cashback offers and special discounts. These special incentives can help you get better value for your money and maximize savings on your procurements.

Help You Track Your Spending

When you use a debit card, you can see the result of your spending instantaneously by viewing your checking account. This simple act can help you monitor your expenditure more effectively and stick to your budget.

Many banks offer mobile apps or online banking with in-depth transaction histories and helpful spending categorization tools. Hence, this makes it simpler to identify areas for improvement and track your spending patterns.

No Annual Fees

Another significant benefit of using a debit card is that it generally has no annual fees. Unlike credit cards that charge annual fees for access to primary usage, debit cards usually don’t incur any fees.

That means you can enjoy the security and convenience of using your trusty debit card for your daily transactions without worrying about additional charges affecting your budget.

Also, you’ll have peace of mind knowing you’re not being fined simply for having the card. Hence, this makes debit cards an appealing choice for people who prefer a transparent and straightforward way to manage their money without the responsibility of extra fees.


Although debit cards are popularly known for their accessibility and convenience, they offer more perks to enhance your daily transactions and financial management. So, the next time you open your wallet, consider the surprising benefits of debit cards.