A debit card and a credit card are both payment cards, but they work in different ways. A debit card is linked to your bank account and uses money that you already have. A credit card is a type of loan and it is not linked to your bank account. Instead, you borrow money from the credit card issuer and then pay it back with interest.
The main difference between debit and credit cards is how they are used. With a debit card, you use money that is already in your bank account. When you make a purchase, the money is deducted from your account. With a credit card, you borrow money from the credit card issuer, and then you pay it back with interest.
Debit cards are generally seen as a safer option because you can only spend what you have. You don’t need to worry about getting into debt or paying interest if you overspend. Credit cards can be useful for building a good credit rating, but you need to be careful and make sure you can afford the payments.
Debit cards are also better for online purchases because they are more secure. Credit card details are stored with the merchant and can be stolen if the website is not secure. Debit cards use a secure code that is not stored on the merchant’s website, so it is much harder for your information to be stolen.
Debit cards are also usually free to use, while credit cards usually have a monthly fee. Debit cards also offer more protection if your card is lost or stolen.
When it comes to choosing between a debit and a credit card, it is important to consider your own needs and circumstances. Debit cards are a great option if you want to stay in control of your spending and keep your finances secure. Credit cards can be useful for building a good credit rating, but you need to be careful and make sure you can afford the payments.