This story is provided and presented by our sponsor Navy Federal Credit Union, a U.S. credit union headquartered in Vienna, VA, serving the U.S. Armed Forces and their families, chartered and regulated under the authority of the National Credit Union Administration. For more information, visit navyfederal.org.

It's a familiar scenario – you're standing in line at the commissary for your weekly grocery trip. Nearly everyone in front of you is swiping their cards at the register. You wonder – are they using their debit or credit card and why? Do they get more rewards points? Cash back? Depending on your financial habits, it could be in your best interest to use one plastic over the other in certain situations.

Here's a quick breakdown of credit and debit card features to help you decide when to use which card.

Credit Cards

You're eligible for rewards.

Credit card programs have grown in sophistication and it's not unusual to see offers with rewards and points, and even VIP treatments like golf packages and access to airport lounges. When you're shopping, consider what benefits you could get for using your credit card. Perhaps you would receive 1.5 percent cash back, or three times the points at restaurants. The bottom line is if using your credit card gives you a benefit beyond just being a payment method, that should be the plastic you're using. Especially around the holidays because you can potentially get free shipping and a percentage off by using online shopping portals.

Enjoy purchase protection.

Credit and debit cards both offer zero liability for purchases. Credit cards often offer extended warranties, price matching, and purchase and fraud protection. If you purchase a faulty item or your card is comprised, disputing those transactions is easy.

Credit cards are travel-friendly.

If you're traveling outside the country, consider a credit card with no foreign transaction fee. Even though you'll likely need a debit card to get cash, it makes more sense to use a credit card for purchases. Foreign transaction fees on debit cards can be as high as three percent of your total purchase, which can add up quickly. A small percentage fee doesn't seem like much, but once you consider how many purchases a day you make while traveling, this could become a substantial cost over the course of your trip.

Your rental car is covered.

Many credit cards provide collision damage waiver coverage when renting a car and most don't require an annual fee. Coverage often includes physical damage and theft of the rental vehicle. Using your card allows you to skip the rental insurance, saving you money and giving you piece of mind.

Debit Cards

What you don't have, you can't spend.

If you have trouble controlling your spending, a debit card is the way to go. Your purchases are limited by the amount of money in your checking account at the time of purchase. If you're trying to get out of debt or consider yourself an impulse buyer, a debit card will help you self-discipline your finances.

Debit is universally accepted.

Some businesses require a minimum purchase amount when using a credit card, but these restrictions usually do not apply to debit cards. They typically have lower fees for merchants and are more widely encouraged by smaller retailers.

Cash is king.

Even in a world where nearly every merchant accepts credit or debit, there are still some situations that require cash. Getting a cash advance using a credit card will cost you an additional fee. Debit cards allow you to withdraw funds from retailers or grocery stores fee-free. And don't forget about the convenience of ATMs.

Debit doesn't require a credit approval.

Since credit cards require you to have a certain credit score, debit cards are easier to obtain. Do your research to find a trusted financial institution that offers free checking and most offer debit cards at no charge.

Bottom line:

When you're at the point of sale, consider using your debit card for cash back and smaller purchases. Use your credit card if you'll receive rewards benefits, and for larger, more expensive items. Above all, be responsible about your purchases and don't spend what you don't have.

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This story is provided and presented by our sponsor Navy Federal Credit Union. For more information, visit navyfederal.org.

©2015 Navy Federal Credit Union. All Images used for representational purposes only; does not imply government endorsement.