Credit and debit cards are the two most popular cards we use for money transactions. Although there are similarities between them, there are differences as well. In this post, we will look into the basics of these cards and see what the major differences between them are. Read the full write-up carefully to learn more about them and their benefits.
Do you have a credit card? These cards look the same as debit cards. Both cards can be used to purchase items. You can draw money using these cards. If you want to have one, you need to apply for one. You should have a bank account to get a debit card.
Credit cards don’t have any such restrictions. Both cards are linked with your phone number so that any transaction informs you through notification. You must consult with a professional to learn more about these cards.
What Is A Credit Card?
If you want to shop easily, you can now apply for a credit card from banks, credit companies or other financial institutions. Using a credit card, you can buy things. Every credit card has a limit. You can’t go overboard with it.
Remember, the bank is offering you a debt that you need to repay within time. If you don’t pay your debts, the bank will levy interest on your debt amount. Consult with a professional to learn more about Apnapaisa Loans.
Benefits Of Using Credit Cards
Here are some of the benefits of using a debit card-
- You can shop easily without any hazards.
- If you repay your debt in time, you don’t need to give any extra money as interest.
- Your credit score will go up with time.
- You can have some extra benefits.
What Is A Debit Card?
Debit cards are quite popular among people. If you have an account in a bank, the bank provides you with a debit card. The card can be used to take out money using ATMs. You can directly punch the card in shops to buy things. You need to maintain your account to use it for a long time.
Benefits Of Using Debit Cards
The benefits of using debit cards are-
- You don’t need to take credit.
- No need to carry cash amount.
- Frauds can be restricted.
Difference Between Them
As we have already discussed the basics of credit and debit cards, here are some differences between them. Read them carefully to understand their operation and decide which is better for use.
- When you shop using a debit card, the money deducts straight from your savings account. In the case of credit cards, the bank or the lending company is lending you the money you need to repay within time.
- For debit cards, you don’t need to repay any money to anyone. For credit cards, you need to repay the amount to the lending company, or it will cost you heavy interest.
- A very small amount as a fee is charged to you for debit transactions. Credit cards do charge some amount.
- No interest rate is applicable for debit cards. Credit card interests are high as hell.
We hope you will find all the necessary information here. Look for professional help to know more about credit and debit cards and their benefits.