An Eftpos or debit card, like credit, is a bit of plastic protected by a pin code that you can use to buy stuff at the store. The difference is that debit and Eftpos cards rely solely on the money you already have in the bank. So, unlike a credit card, you're not borrowing money you don't yet have.
Debit or Eftpos cards are usually set up with a bank and don't acquire much in fees or interest. Payments with these cards also impact your credit history only when you start missing payments.
So what should I do?
Taking out a credit card may be a great way to build your credit history, and it means easy approval of cash that you pay back each month. But credit cards also include more fees and the chance of missing repayments. We also suggest you stick to a low credit utilisation.
On the other hand, debit cards are an excellent way to avoid adding to your credit bill if you're buying everyday things. We recommend using a debit card for most regular payments because there's no reason to get everything on loan unless you're seriously hard up.
Credit cards have one other advantage — they're more secure for online payments. So if you're buying stuff online, you may want to use a credit card for safety reasons. You can also set up direct bank payments if you've got available funds and want to avoid taking out a card.