Use Credit Card for Large Purchases

• If you're making a large purchase--say a new television or a family vacation--you may not be able to afford to put it on your debit card. Transactions that run several hundred or even thousands of dollars may not be viable to process through your debit card because the cash flow may simply not exist. The credit card is an ideal place to put a large purchase that you will pay off over time.
  
  

Use Credit Card for Rewards

• If your credit card offers rewards for every purchase, it may be worthwhile to keep your debit card in your wallet. Certain stores may offer discounts or other benefits if you use a preferred credit card. By taking advantage of these rewards, you can be working your way toward rewards such as cash back or a free gift.
  
  

Use Debit for Smaller Purchases

• If you can afford to pay for your purchase with your debit card, do so. Smaller purchases, such as movie tickets or gas, are ideal for the use of debit. You can afford these small purchases, the money is transferred right away and you don't have to worry about paying a bill full of small purchases at the end of the month. If your credit card is maxed out, use your debit card to pay for the items you need.
  
  

Use Debit to Save Money

• Using a debit card can be a dependable tool to save money. Using a debit card takes money out of your bank account immediately. You may be forced to cut down on expenses so as to not spend as much money. You can curb your spending habits if you know your bank account will be depleted. Furthermore, using a credit card can carry interest fees on leftover balances. Since debit cards don't work the same way, you don't pay those fees.
  
  

Signature Versus PIN

• The primary difference between using a credit card and a debit card is the authorization. With a credit card, you sign for your purchase. When using debit, you authorize the transfer of funds by using your personal identification number. While the methods are different, the goal is the same -- to protect you. If your credit card is used without your authorization, according to the Federal Trade Commission, you are liable for up to $50 (however, if your number is used and not your card, you are not liable for any losses). You are liable for unauthorized debit transactions, if reported within two business days, for up to $50. If you wait longer to report unauthorized use, you may be liable for up to $500.