Debit Card vs Credit Card: Although their appearances are similar, credit cards and debit cards perform separate tasks. Debit cards are used to make purchases using funds from your current or savings account, whereas credit cards are short-term loans given to you by the card issuer that must be repaid. In this article, we will compare both of these card types.
Debit Card vs Credit Card
What is a debit card?
You can make purchases using the account because it is linked to your debit card. Debit cards can also be used to make purchases and get cash out of ATMs. Because the money is deducted from your bank account when you use your debit card to make a transaction, you are essentially utilising money that you already have. When using a debit card, you have to make sure you have enough money in your account.
What is a Credit Card?
In other words, a credit card lets you borrow money to make purchases. Every time you use your card, you take money out of your credit line. The maximum amount you are able to borrow depends on your credit limit. Your payment history, the frequency of your credit applications, and other criteria are typically taken into account by lenders when determining your credit limit. Over time, the purchases you make with your credit card accumulate. At the end of each billing cycle, which is normally every 30 days, you will receive a credit card statement.
Which One is better?
A lot of people own both credit and debit cards. Because every card serves a distinct purpose, they make use of the special benefits and distinctions between debit and credit cards. Consider obtaining both of them rather than just one or the other!