Debit cards are great for everyday spending. They pull money directly from your checking account, which can make it easier to track what you have and avoid overspending.
The downside is that your actual cash is on the line if something goes wrong. A card skimmer, a questionable online seller, a large hotel hold, or a charge you need to dispute can leave money tied up in your bank account while you wait for the issue to be resolved.
That doesn’t mean debit cards are a bad choice. There are just certain purchases where using a credit card can give you more breathing room and, depending on the situation, additional purchase or dispute protections. These are some transactions where reaching for your credit card may make more sense.
Big-Ticket Purchases
Large purchases such as appliances, furniture, electronics, and jewelry can be easier to deal with on a credit card. If the item never arrives, arrives damaged, or there’s a billing problem, you may have the right to dispute the charge through your card issuer.
With a debit card, the money has already been debited from your bank account. If you need to fight a charge, that missing money can put a dent in your available cash while the problem is being sorted out.
Related: 5 Things You Should Stop Leaving in Your Entryway
Anything That Requires a Large Deposit
Large deposits and temporary authorization holds can be annoying with any card, but they can be much more noticeable with debit. A hold reduces the amount of money you can actually spend from your checking account until the merchant releases it.
That can become a problem if the amount is several hundred dollars or more. Money you had planned to use for groceries, bills, or other purchases may suddenly appear unavailable.
Hotel Stays
Hotels commonly place a temporary hold on a card when you check in. The amount can cover the room, incidentals, and any extra charges, and the final amount may differ from the initial hold.
A credit card can keep that temporary hold separate from the cash sitting in your checking account. With a debit card, the hold can reduce your available balance for several days, which can be a hassle during a trip.
Related: 10 Things Hotels Regularly Have to Replace Because Guests Take Them
Rental Cars
Rental car companies can also place sizable holds, depending on the company, location, rental type, and payment method. With a debit card, that hold can reduce the money you have available in your checking account.
That can make budgeting for a trip harder than expected. A credit card can leave your regular bank balance untouched while the rental company holds a temporary authorization.
Gas at the Pump
Gas pumps are another place where using a debit card can come with some extra concerns. Some stations place a temporary authorization hold before you finish filling up, and the amount can be higher than the final cost of your gas.
Card skimming is another concern at unattended terminals. Paying at the station or using a credit card can reduce some of the risk associated with linking your debit card directly to your checking account.
ATMs in Isolated Areas or Non-Bank Machines
ATMs can be convenient, but it’s worth being more careful with machines in places that aren’t well monitored. Independent ATMs and machines in isolated locations can be more vulnerable to tampering, including card skimmers and hidden cameras.
The bigger concern with a debit card is what happens if someone gets both your card information and PIN. Since the card is connected directly to your bank account, unauthorized withdrawals can affect your actual cash balance. Using an ATM inside your bank or another well-monitored location can help reduce the risk.
Related: What your local food bank needs but rarely asks for
Bars and Nightclubs
Busy bars and nightclubs aren’t always the easiest places to keep track of your card. Tabs may stay open for hours, cards can change hands several times, and multiple transactions may show up close together.
A credit card can give you some separation between those transactions and the money sitting in your checking account. It’s still important to check your statement and report anything you don’t recognize.
Street Vendors and Temporary Booths
Street fairs, markets, craft shows, and temporary booths often rely on mobile card readers. Many are perfectly legitimate, but you’re dealing with a seller you may never see again.
If there’s a problem with the transaction, it may be difficult to get in touch with the seller later. Using a credit card can provide an extra layer of separation between the purchase and your checking account, especially if you’re unsure about the vendor.
Festivals and Pop-Up Events
Temporary events can have a mix of established businesses, independent sellers, ticket vendors, and food stands. Transactions can also happen quickly, which makes it easier to overlook an incorrect charge.
Credit can be useful for these purchases because you aren’t immediately drawing the money from your checking account. Keep your receipts and confirmation emails, especially for event tickets or larger purchases, in case you need to question a charge later.
Related: These 10 Old-School Hobbies Aren’t Dead Yet — But Fewer People Are Learning Them
Phone Orders
Phone orders require you to give your card information directly to another person. If you’re dealing with a company you’ve never used before, it can be harder to tell whether the business is legitimate than when shopping on an established website.
Using a credit card can limit the immediate impact on your checking account if there’s a dispute. It’s still a good idea to verify the business before providing any payment information.
Shopping on Public Wi-Fi
Shopping online while connected to public Wi-Fi can add an unnecessary security concern. A legitimate website doesn’t automatically make every public network safe, particularly if the network is poorly secured or you’re connected to a fake hotspot.
If you need to make a purchase away from home, using your phone’s cellular data is usually a better choice than entering payment information on an unfamiliar public network. A credit card can also keep a potentially compromised transaction separate from your everyday bank funds.
Online Subscription Services
Subscriptions can be easy to forget, especially after a free trial turns into a paid membership. If the service continues to charge your debit card, each payment will come directly from your bank account.
That can be frustrating if you’re trying to cancel the service or dispute a charge. Putting recurring subscriptions on a credit card can make them easier to track separately from your regular checking account expenses.
Gym Memberships and Recurring Contracts
Gym memberships, subscription boxes, software plans, and other recurring services can create similar problems. You may think you’ve canceled a service only to discover another charge on your account the following month.
Using a credit card doesn’t eliminate the need to cancel properly or monitor your statements, but it can prevent recurring charges from being debited directly from your checking account. If a merchant keeps billing you after you’ve canceled, you’ll also have documentation to use when contacting the card issuer.
Future Travel Bookings
Booking a flight, hotel, cruise, tour, or other travel plans months ahead means paying for something you haven’t used yet. With a debit card, the money is debited from your checking account as soon as the transaction goes through.
Plans can change before the trip, and refunds don’t always arrive immediately. Using a credit card can leave more of your cash available while you wait for the trip to happen or for a refund to be processed.
Vending Machines, Parking Meters, and Transit Kiosks
Unattended payment terminals can sometimes be harder to monitor than the checkout terminal at a regular store. Parking meters, vending machines, and transit kiosks may also be located outdoors or in places where tampering isn’t noticed right away.
If a terminal accepts contactless payment, tapping your card or phone can be preferable to inserting or swiping a physical debit card. A credit card can also keep the transaction separate from the money in your checking account.
