There are a lot of articles and advice published about which of the two is better. Most of this advice is wishy-washy and really fails to get at the heart of the issue. The single most important fact to know is that if you never spend more than you have, a credit card is strictly better than a debit card. A credit card offers better theft-protection and when used properly builds a good credit rating. Using a debit card is not essentially different from cash except in convenience.

The sole weakness of credit cards comes from the fact that it is different from cash and debit cards: it allows you to spend more than you have. Should you fail to pay off the entire balance every month, you’ll be faced with high interest charges and end up paying more than you spent or going into debt. It’s true you can get yourself in a lot of trouble with a credit card, but the credit card itself does nothing but give you the choice.

If you can make responsible use of a credit card, by all means get one. As easy as that sounds, many people do get into credit card debt every year, and a lot of them are students. You’re a valuable market for credit card companies because they know that inexperienced as you are you’re more likely to make the mistake of overspending. That’s how they make their money.

Using a credit card responsibly will end up saving you a lot of money. In the short run, you essentially get to take out lots of zero-cost loans at the expense of the credit card company. The only reason they can offer such a good deal to responsible customers is that the customers who get into debt end up paying those companies a lot of money. Be one of the people who take advantage of the credit card’s features, not one of the ones who pay the companies enough profit to offer such good deals in the first place.

In the long run, using a credit card regularly and responsibly builds your credit rating, which will determine how much you pay in the future for any large purchases you may make. When it comes time to buy something like a car or a house and you need to take out a big loan, having a good credit rating can mean a difference of many thousands of dollars. See our credit building 101 section for more information.

The bottom line here is: know thyself. If you can’t handle having access to a credit card without overspending, then follow the advice of all those articles and get a debit card instead. But what they don’t say is keep in mind that the only thing holding you back is yourself. There’s a real problem in today’s society with people who get themselves in a lot of trouble with debt. Start with good financial habits now, when you’re on your own for the first time.

• What we don’t need is a generation of people who get and use only debit cards because credit cards are “dangerous” and can land you in crushing debt.
• What we don’t need is a generation of people who do end up in crushing debt.
• What we need is a generation of people who have credit cards and use them responsibly.

The bottom line:

• Get a credit card. (Read our student credit card section for more info).
• Use it wisely.
• Don’t ever forget that using a credit card is spending real money.
• Don’t spend more than you have.
• Treat the card just like cash, and it can only help you.