Difference between credit and debit card

Knowing the difference between credit and debit card is essential, since both are financial products that we use almost daily and that can have direct consequences on our economy.

What is the difference between credit and debit card?

What is the difference between credit and debit card?

Actually we find two basic differences. On the one hand the form of payment and on the other the possibility of financing .

Debit

With it the payment is always made directly and at the same time we make a purchase . That is, if at that moment there is no money in the bank account to which the card is associated, payment cannot be made.

Credit card

In this case, what is done is to defer payment . The immediate consequence is that you can pay for a product or service with a credit card even if at that time you do not have money in the bank account with which it is associated.

In addition, you can choose how you want to make the payment. If you do not need financing you can opt for the full payment in the following month . A payment date is set and once it arrives you will be discounted the amount of purchases made with the credit card in the period settled.

If you don’t want to, or can’t pay the full amount, you can postpone it. Here you can choose to pay a fixed fee each month or pay a certain percentage of the total debt each month.

Of course, do not forget that if you divide the payment you will have to face a series of interests that you will also pay month to month. This is a difference between credit and debit card that you should not overlook, since the second one never carries associated interests.

Advantages of using debit cards

cash

  • You don’t need to carry cash.
  • You can pay directly with them or use them to get money at an ATM.
  • You make sure you don’t spend more money than you have.
  • They are simple to hire.
  • They do not usually have high commissions.

Advantages of using credit cards

Advantages of using credit cards

  • You don’t need to carry cash.
  • You can pay with them in the establishments or you can use them to get money at an ATM.
  • They allow you to purchase products even in those times when you don’t have enough money.
  • You can finance important purchases.
  • They include additional insurance, such as travel insurance.

The truth is that having a credit card can get you out of more trouble, but not all of them are the same. If you want to know the best in the market, do not hesitate to use our credit card comparator.

If you want to read more about cards do not miss the following posts:

  • False myths about credit cards
  • Credit Cards vs. Personal Loans
  • How to apply for a credit card online
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