See The Difference Between A Credit Card And A Debit Card

Forum 8 years ago

See The Difference Between A Credit Card And A Debit Card

Most of us already know the difference between these two cards, but so many people are still ignorant of it. So today we will briefly discuss on the difference between a credit card and a debit card.

CREDIT CARD: These kind of cards are not connected/linked with your bank accounts. In other words, your bank accounts are not charged when transactions are carried out with your credit card. Rather, all charges incurred are paid by your card issuer.

Note, incurred charges during the transactions will be paid back by you to your card issuer within a stipulated period of time with little interest rate. The interest rate attached to your bills tend to increase when you don't pay up your bill within the stipulated time. Limits on spending are set on your card depending on your trustworthiness.

Also note that these kind of cards are very difficult to get because there must be substantial proof that you will be able to pay any incurred debt during your use of the card. So in my own words i call these kinds of cards "CASHLESS LOAN"


DEBIT CARD: Debit cards are kind of the opposite of credit cards. These cards are connected/linked to your bank accounts. Any transaction carried out with this card is charged directly from the funds in your bank account.
Every account holder is eligible for a debit card.
There are no interest rate attached to your transactions when you use your debit card.

Like i said this will be a very brief discussion. And i hope you can now differentiate between the two.