What is difference Between A Credit Card and Debit Card ?

Do you want to know the differences between a credit card and a debit card? While both may be used to make transactions without having to pay cash or write a check, they are not the same.

This post will explain the differences between a credit card and a debit card in a nutshell, as well as the benefits and drawbacks of each.

Read this article to learn how to apply for a Capital One credit card and get approved.

What exactly is a credit card?

Credit cards allow cardholders to borrow money from the card issuer for purchases or cash withdrawals up to a specific limit. This can be used at any merchant location as well as online. Debit cards remove money straight from your bank account, but credit cards offer you access to a bank-issued line of credit.

When you use your credit card, you enjoy benefits like discounts, travel points, and other perks that debit cardholders don’t get…. It also serves as a financial safety net in the event of a job loss, hospitalization, or vehicle maintenance. Some people use them to pay their bills.

With a history of expenditures and timely payments, and by keeping their card balances low relative to their card limitations, responsibly using a credit card can assist increase your credit score. Each month, you’ll receive a bill or statement detailing your transactions.

There are a variety of fees associated with credit cards, including application fees, annual fees, late payment fees, and rejected check fees, to name a few. The majority of credit cards provide 100 percent liability protection. As a result, you are not responsible for any unlawful transactions.

 

What exactly is a debit card?

A debit card is a credit card that is linked to your bank account and can be used to make transactions. When you use your card to pay for products and services, the cost of the thing you’re buying is automatically withdrawn from your account.

This can help you keep track of your spending because you typically need money in your bank account to use the card to pay for things. Annual fees are common on credit cards, although they are not common on debit cards.

Debit cards allow you to access your money quickly. You can withdraw cash from ATM machines with your debit card. Some establishments may give you “cash back” by charging more than your initial transaction to your checking account and handing you the money with your receipt.

You can access any amount up to what is currently available in your savings bank or current account using a debit card.

While using a credit card, you can spend up to the credit limit on your card.

Debit and ATM cards do not have the same level of protection as credit cards. Under the Fair Credit Billing Act, the maximum responsibility for a lost or stolen credit card is $50. There is no accountability if the missing card is notified before any fraudulent charges are made.

Using a debit card can also help you avoid the interest costs associated with using a credit card. Whatever charges you make accumulate interest unless you pay off the balance every month. And this could end up costing you a lot of money.

On purchases made with your debit card, you will not receive any points or cash back. Because rewards can save you money depending on how you redeem them, if you only use your debit card, you may be missing out.

 

,

Leave a Reply

Your email address will not be published.