These days, it’s not uncommon for debit and credit cards to be used interchangeably when making purchases. However, there are some differences between them. Let’s start with debit cards.

A debit card is a card issued by a bank through which you can access the funds you have in your account without having to go to the bank or write a check in order to buy something. The way a debit card works is that you can either go to an ATM to withdraw the money from your account, or, when used as a form of payment, it transfers the money directly from your account to the business account where you’re making a purchase. With every debit card transaction, your bank balance goes down, unlike credit cards.

A credit card, on the other hand, is also an electronic card, with the difference that instead of using the money that is already in your account when you make a purchase, it gives you the option to borrow money from your credit card company instead of transferring the money directly from your account.

When withdrawing money from your debit card in an ATM from the same bank your card is from, you don’t have to pay any fees. However, when you use your credit card to withdraw money from an ATM, it will be considered a cash advance and you will be subject to the cash advance fees imposed by your credit card issuer.

Why Use Credit Cards At All?

Credit cards have many advantages over debit cards..

When you use a credit card, you are using the card issuer’s money. Therefore you can spend more than what you have in the bank – or at least, postpone in paying for something. As long as you repay the money you owe within the billing period, which is usually 15 to 45 days, you don’t pay any interest on it. The problem only arises when you don’t pay back the money you borrowed, and you will be charged a high interest rate, usually around 11%-20% per year.

Another benefit of credit cards is you get better protection than with debit cards. If a credit card gets stolen, once you report the loss, you will only be liable to pay up to $50 if any money from the account has been used. With a debit card, if you report it more than 2 working days after it is stolen, you will be liable to pay up to $500 and if you fail to report it after 60 days, then your liability could be unlimited, depending on the state you live in.

Most credit cards give you privileges that many debit cards don’t. Many credit cards offer rewards, while many debit cards do not.

Cash back credit cards let you earn cash rewards on your purchases, which is a form of discount on your spending. For those who like to travel, travel rewards cards offer a wide range of travel-related benefits such as free flights, free hotel stays and more.

Unlike debit cards, credit cards help build your credit history, as long as you pay your bills on time. Having a credit history is essential if you want to apply for car or home loans in the future.

Using both a debit card and credit card makes sense, as long as you spend within your limits.

Which Credit Card To Get?

If you’ve decided you want a credit card based on all their advantages, how do you know which one to get?

The answer depends mainly on whether you intend to pay off the balance every month and what your credit score is.

If you plan to pay off your balance every month and you have good to excellent credit, you can consider a cash back card like the Chase Freedom $100 Cashback Bonus or the Discover More $50 Cashback Bonus. Both of these cards have similar cash back programs including 5% cash back on different categories of purchases.

If you have good to excellent credit, but are thinking of making a big-ticket purchase and would like to pay it back interest free over a certain period of time, you should look at cards that offer a long introductory 0% APR on purchases.

According to DailyMarkets.com’s credit cards search wizard, cards which currently offer the longest introductory 0% APR on purchases are the Citi Simplicity Card and the Citi Diamond Preferred Card with 18 months 0% intro APR (11.99%-21.99% APR thereafter), and the Chase Slate card with 18 months 0% intro APR.

If you have a lower credit score and would like to rebuild your credit, then you can look at secured credit cards. A great secured credit card is the Capital One Secured Credit Card which has a low annual fee of $29, and if you are careful and repay in full each month, it can help improve your credit score.

For DailyMarkets.com’s list of the best credit cards for 2011, check out our Best Credit Cards 2011 to see which cards have won in various categories.

Apply for any of these credit cards now:

• Citi® Platinum Select® MasterCard®
• Perks
• 0% Intro APR*
• 11.99% - 21.99%* (Variable)
• $0

• 0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the APR will be 11.99%-21.99% based upon your creditworthiness.
• Extra Cash from Citi: enjoy discounts on gift cards, travel, merchandise and more
• Citi® Identity Theft Solutions
• Secure, free online account management
• No annual fee*

• Additional Perks: Various Internet account related services. Citi Identity Theft Solutions. $0 liability on unauthorized purchases. Secure, free online account management. Fraud and security protection services. See website for additional benefits.

• 0% Intro APR for 18 Months on Balance Transfers* and 18 Months on Purchases*

• APR For Purchases: 11.99% - 21.99%* (Variable)
• APR For Cash Advances: 25.24%

• Annual Fee: $0*
• Cash Advance Fee: 5% of each cash advance; $10 minimum
• Balance Transfer Fee: 3% of each balance transfer; $5 minimum
• Late Payment Fee: Up to $35

Read Our Review Of Citi® Platinum Select® MasterCard®

• Capital One® Secured MasterCard®
• Perks
• No Introductory Information Available
• 22.9% (V)
• $29

• Get the credit you need with no processing fees or application fees
• Automatic reporting to the 3 major credit bureaus
• Track credit with access to your credit score and other tools
• Your refundable security deposit can get you a line up to $3000
• You may qualify for credit line increases with no further security deposit required
• Use it like any MasterCard credit card, accepted at millions of locations worldwide

• No Introductory Information Available

• APR For Purchases: 22.9% (V)
• APR For Cash Advances: 24.9% (V)

• Annual Fee: $29
• Cash Advance Fee: 3% of amount of the cash advance, but not less than $10
• Balance Transfer Fee: $0
• Late Payment Fee: $19

Read Our Review Of Capital One® Secured MasterCard®