Why You Should NEVER USE A DEBIT CARD!! - Credit Card Vs Debit Card Canada 2023

In this video, we discuss why you should almost never use a debut card over a credit card, as well as taking a comprehensive look at the main credit vs debit card difference & benefits.

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The credit vs debit card debate has been around for decades. Most people are not aware of what really the credit vs debit card difference is, and often struggle to decide which one they should use for they date to day transactions. So the question that we attempt to answer in this video is, credit card vs debit card which is better and why? And this will not only apply to credit card vs debit card Canada wide, but also to every territory where credit cards and debit cards can be found. So what we discuss is not just a debit Canada problem, but something that applies everywhere between credit cards and debit cards.

We first begin by taking a look at all the advantages of a credit card vs debit card. First is the fact that every financially responsible person needs to build their credit score from a young age, and getting a credit card that you use regularly and always pay off on time and in full, is the best way to start building your credit history. This will later be extremely useful, as if you manage too attain and keep a high credit score, any time you apply for a loan or mortgage, you are far more likely to be accepted by the lenders, and will most certainly have to pay the lowest interest possible at the time. As a result, there is incredible value in building your credit score, and using a credit card will help you do exactly that. On the other hand, using a debit card will not help you in this area whatsoever.

The second advantage of credit cards over debit cards is the fact that you will receive rewards or cash back when you use your credit card. Essentially for every dollar that you spend with a credit card, you will in turn receive a couple of percentages of value back either through rewards points, or actual cash back on your account. Although this may not be a huge amount of value back, if you are spending the money anyways, you may as well get a bit of that value back, rather than use a debit card which will give you nothing back in return.

The third advantage of credit cards is their fraud protection feature. Now this is not to say that the debit card fraud protection is not as good, but it is done in a different way. For example, if someone defrauds your credit card and you report this incident to the credit card company, they will not charge you for the fraudulent charges and will simply provide you with a replacement card. However, if someone uses your debit card and you report this incident, you will have lost actual money from your chequing account, until the bank conduct an investigation into your reported incident, and eventually refund the money into your account. Either way and with both credit and debit cards, the fraud protection feature will ensure that you don't lose your money. However, I would rather never lose any money in the first place with credit cards, than lose money through my debit card, and then have to wait for the refund.

Yet another advantage of using a credit card is that some cards give you coverages or extended warranties. This could be anything from travel & flight insurance, purchase protection, or extended warranties on any items that you buy with that card. Again, no debit card will offer any of these features, so you may as well use a credit card to get them.

So you may ask, why should I get a debit card in a first place? Should you use a debit card ever in any situation? The answer to these questions is that even though credit cards are far better than debit cards, there are still some things that you can't do with credit and you would need a reliable debit card for. One example of a debit card benefit is ATM usage, where you can use the ATM to both deposit and withdraw cash for no charge, as long as you use an ATM at the same bank as your chequing account. Another debit card advantage is that not everything can be paid for by credit cards. E.g. most bills have to be paid with cash through a debit card; this can be anything from rent payment, utility bills, credit card bills, loan payment, etc.

So all in all, credit vs debit card benefits are different, but overall credit card benefits outweigh the debit card features.


0:00 Intro
1:45 1. Building Your Credit Score
3:28 2. Rewards & Cash Back
4:22 3. Fraud Protection
5:51 4. Coverage & Extended Warranty
6:27 Any Point in Debit Cards?
6:36 1. ATM Usage
7:05 2. Bill Payments
7:35 Pay Off Your Credit Cards!!
8:17 Which Credit Card Should You Get?