Yesterday I wrote a post with same title. In that post I mentioned using char(1) is also same like using one bit column in table. But it is from the perspective of storage space. But using numbers is less burden to Database engine. It means using 1 and 0 is better than using ‘Y’ and ‘N’. Also in comparing data or in sorting data it is easier.
If you are storing numbers as a text its not a good thing although you don’t do any mathematical operation with that text. First thing it takes more space. It takes 1 byte for every character, while integers take very less. And second thing if you store them as string it will have extra cost to manipulate, compare, sort, whatever you are going to do with them.