Credit cards are no longer the fashionable plastic to use. Debit cards are in now. As more Americans shun traditional credit cards, they're turning to debit cards. But there are downsides to debit cards as well.
Security: If your credit card is stolen, you're not responsible for unauthorized charges over $50. But if your debit-card number is stolen, you have fewer protections. You have to report any misuse within two days to get the same $50 limited liability. If you miss that deadline, but report the loss or misuse within two months, you could be responsible for up to $500. After 60 days, your liability is unlimited. Card issuers do have different policies though. Just make sure you go through the fine print.
Credit Score: If you're trying to build your credit score, you won't want to use a debit card. It will have no positive impact on your credit. Debit cards pull directly from your bank account. BUT if you overdraw on your bank account, it won't be reported. It will be reported to the credit bureaus if you do this or if you have incurred other debit card fees.
For more check out the link below.
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