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Most people carry a wallet full of plastic — maybe three to four active credit cards plus at least one debit card connected to their checking account.

But when it comes time to pay for something, which one do you pull out? If you have more than one rewards credit card, you probably choose the one that will reward you the most for whatever you happen to be buying — giving you extra cash back on gas or groceries, for instance.

But otherwise, how should you decide which one to use? Because credit cards are a loan product and debit cards aren’t, there are pros and cons to each, some of which can have ramifications for your credit score or budget.

Here’s what to consider when deciding which payment method is best and when.

Debit Cards

Pros:

•  Limits overspending: Debit cards deduct money directly from your checking account, so you can’t really spend more than you have. (You can get dinged with a fee for overdrawing your account, though, so don’t try it.)

•  No added costs: You’re not borrowing money, so there's no potential for accruing interest charges or incurring late fees. You might also avoid the percentage fees some places charge for using a credit card (for example, when paying taxes to the IRS).

•  No debt: Again, no borrowing means you don’t run the risk of building up debt you’ll have to repay.

Cons:

•  No rewards for spending: One of the biggest downsides to debit cards is the lack of spending rewards like airline miles or cash back.

•  Doesn’t build credit history: Since you don’t have to repay anything, using a debit card doesn't usually help build your credit history or improve your credit score.

•  More risk: If your debit card is stolen, any money that’s spent comes out of your account immediately, and resolving fraud can take time.

Credit Cards

Pros:

•  Rewards and perks: Many credit cards reward spending with cash back or travel points that can be redeemed for hotels or flights. Depending on your spending (you fly a lot or you’re a foodie,) these can add up to hundreds of dollars a year. (Though fancier cards can charge big annual fees.)

•  Builds credit history: Using a credit card responsibly can help establish and improve your credit score. While a good track record with auto loans or student loans will also help you build credit, on-time monthly credit card payments can be an important stepping stone if you’re just starting out.

•  Better fraud protection: Credit cards offer better protection against fraud, and you won’t immediately lose money from your checking account.

•  Time: Credit cards buy you a bit of time. Unlike debit cards, you don’t have to pay for your purchases right away and you’ll have a few weeks to pay your bill. This can be very convenient — as long as this doesn’t lead to overspending.

Cons:

•  Risk of overspending: Credit cards can tempt you to spend more than you can comfortably afford to pay, leading to debt. This isn’t a problem, however, if you use your credit card as if it were a debit card, paying your balance in full every month.

•  High interest rates: If you don't pay your balance in full each month, you’ll be charged some of the highest interest rates of any loan product. The average in August was 21.4%, the latest Federal Reserve data shows. And credit card debt can quickly rack up thanks to compounding interest.

•  Can hurt your credit score: Just as with any other credit product, late or missed payments can have a significant impact on your score.

•  More complex: Some cards will draw you in with a 0% interest rate for the first year (sometimes longer), making it easier to run up a balance you’re unable to handle once the finance charges kick in.

The right balance of credit vs. debit will vary from person to person and can fluctuate depending on your stage of life and financial situation. The most important thing is to keep control of your cards — rather than letting them control you.

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