Debit Card Credit Card: Have your parents then teaching money concepts to you? In particular, have they spoken to you about credit cards and debit cards? How they work well if you answered yes and let me ask you a question, what’s the difference between a debit card and a credit card? Have you ever been worried about the difference between a credit card and a debit card?
Difference between Debit Card and Credit Card:
Now if you aren’t sure what the answer is let me explain it for you. If you did know the answer then perhaps you’d like to continue listening and watching this article to double-check that your answers the same as mine.
Credit Card
Now simply put a credit card is where you borrow money while a debit card is where you spend your own money. So, when you use a credit card you’re borrowing money from your bank. So it’s actually a loan now. I have to use the credit card your bank will ask you to pay back the money that you spent.
If you pay back all the money straight away then it’s that’s all you have to do. If you don’t watch out because the bank will charge you interest and the longer that you take to pay back the money to the bank then the more money you are going to have to give them in interest.
So they’ll also charge you lots more money if you don’t pay the minimum amount by the due date. So you have to be very careful with credit cards if you think a credit card may not be for you. Then maybe you should consider having a debit card instead. These cards offer the same things as credit cards such as buying things over the internet or phone.
Debit Card:
The big difference is that you’re using your money instead of borrowing money from the bank that way you don’t risk having to pay the bank lots of interest in other fees. Now a debit card can have many names that can be known as a debit credit card. A key card handy card, Flexi card, access card, or cash card now what name will actually depend on what your bank calls them.
Where you live in the world there are also many options that you can choose from, so ensure that you compare them all and pick the card that’s right for you. Don’t be afraid of someone who is more experienced to help you choose.
So it’s all about trying to work out a balance between fees and charges. The things that you want your card to do it’s also important to consider if your bank actually offers debit cards so speak to them. Find out more before you make any decisions. If you have any questions feel free to contact us in the comment box.
Thank You.