SHOULD YOU PICK "DEBIT" or "CREDIT" WHEN USING YOUR DEBIT CARD AT THE GAS PUMP?

Answer: Choose "CREDIT."

Here's why:

If you have ever used your debit or credit card to pay for gas at the pump, you know you have to swipe your card before pumping gas. The machine, however, does not know how much gas you are going to buy. As a result, it has to take a wild guess. It checks to see if you have $50 to $100 in your account to authorize the purchase. If the authorization comes back, the retailer "blocks off" that $50 to $100 so you can't spend it elsewhere.

Still, you might only buy $10 worth of gas. Nevertheless, that $50 to $100 will be blocked off for several days. In a worst case scenario, you'll end up bouncing checks or overdrawing on your account even if you have the money in your checking account. It's just not "available." This means that if you use your debit card for everyday purchases, you need to make sure those funds are available.

If you pick "credit," however, the money comes out of the same place -- your checking account. The gas station does not put a hold on your account for $50 to $100, just the amount you actually spend.

So choosing "credit" is the way to go.

Source: About.com Banking/Loans