Protection. Credit cards have better protections against fraud than debit and ATM cards. With a credit card, you'll pay no more than $50 in the event of fraudulent transactions and many issuers pledge that you'll have no liability whatsoever. With a debit card, you could end up paying the full amount if you wait too long to notice or report losing a card. Moreover, many credit cards offer valuable insurance, too from cell phone protection to travel coverages and more