What are the differences between credit and debit cards?

The difference between credit and debit card it is very important that you know it because they work in a totally different way.

For this reason, perhaps you are a young person who has just made use of plastic and you think that either of the two offers you the same benefits, but nevertheless before using them you should read below what each one of them is about and how to use them so as not to be disappointed or that your purchase is rejected:

What is the difference between credit and debit card

Although there is a difference between credit and debit card that is substantial so that you can understand the operation of one and the other …

If you have a debit card or a credit card, both can be used without having to pay for your purchases with cash.

But that cash that you load on any of your cards can be used in different ways. Here are the most important differences between credit and debit cards:


  1. The debit card allows you to obtain money that comes from a deposit account, therefore when you make a purchase you are using the money that is in that deposit account, so you can only use the funds that you have available in that account until they are exhausted.
  2. With the debit card you can withdraw cash from an ATM of the bank that issued the card without charging you fees, but if you withdraw the money from an ATM that does not belong to the issuing bank, you will pay fees.
  3. In general, the debit card has no cost, but for managing the account you will have to pay a commission.
  4. You can also receive returns for keeping the money deposited in the account, but in this case the bank will ask you to have a minimum balance.
  5. Therefore, if you plan to obtain a debit card and do not want to pay commissions, try to open a deposit account without commissions, because although you will not receive returns, you will not pay commission.

Credit card

Below you can read the characteristics of the credit card so that you can realize the differences it has with respect to the debit card:

  1. The credit card works mainly as if it were a credit granted by the bank through a card from which you access funds.
  2. With your credit card you can make purchases or hire services at businesses that accept credit card payments. When you go to the store’s cashier, show your card, then sign a voucher and complete the purchase.
  3. After the purchase with a credit card, as the merchant did not receive the cash, the bank that issued your card will be the one who will settle the money for your purchase, discounting a percentage for commission.
  4. Then, as the bank lent you the money to make the purchase, you will be the one who liquidates it to the bank according to how you have defined the purchase, since you could have bought a product in one payment or in several, then depending on it, it can charge you financing with or without interest.

Main difference between credit and debit card

  1. Therefore the main difference between credit and debit card It is the ease that the credit card gives you with respect to the fact that you can buy products in the amount of installments that best suits you and offers the store, while with the debit card, as it is not a credit granted by the bank and only You can use the card funds according to those you have in the deposit account. You can only make purchases in a single payment as if it were in cash.
  2. Also when it comes to the credit card, how it works like a bank loan, the bank charges you interest for said loan.
  3. Your credit card will have a limit that will be indicated by the bank when evaluating various concepts, and say that you can make purchases up to the money limit indicated by the bank, otherwise if you exceed that limit they will reject the card.
  4. The debit card can also be rejected when you make a purchase that exceeds the amount of funds you have in your deposit account, for this reason you should always have updated information about the balance of your deposit account to prevent your debit card be rejected.
  5. Although it may seem like a disadvantage, it is a benefit for you because it is the best way you can control your expenses, since you will not be able to spend more than what you have saved in your account.
  6. On the contrary, beyond that the credit card establishes a limit, you can make the amount of purchases you want up to said limit, but after your purchases, when you must pay the bank the monthly settlement, it is likely that you realize that you have exceeded and does not have enough money to face the full payment.
  7. In fact, at the end of the month or on the date stipulated by the bank as the closing date, you will receive a summary with the settlement detailing your expenses financed with the credit card where you can read what is the total amount of debt that you must pay and what It is the minimum amount that the bank allows you to pay.
  8. In this case, when you receive your credit card statement, it is always better to try to pay the total amount you owe instead of paying the minimum amount allowed.
  9. However, everything depends on your ability to pay, but the truth is that in those moments it is important that you avoid payment debts on your credit card because having obtained it, you started your credit history and consequently it will be affected if you do not comply with your obligations .
  10. For this reason, when you apply for a credit card, the financial institution requires that you demonstrate that your monthly income is stable and that with them you will not have problems facing the debts that you can contract with your credit card and based on this it will establish a lower and higher self. limit on the total value of your purchases.

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