Credit Card and Debit Card Basic Information
Credit Card Basics
Credit cards are means of payment by credit, which we can make payments without using cash. By signing up for a credit card, you agree to pay back the money that you borrow, plus any interest or finance charges that accrue on the amount you owe until you’ve paid it all back. Put simply, credit cards are a type of loan. Liability users with installment is paid a certain minimum amount of total transactions (usually between 5-10 percent of the total bill) to be paid on the due date specified each month.
Debit Card Basic
Debit card is a type of card that can be used to withdraw cash through ATM. If we have some money in our bank account we can request an ATM card or debit card from the Bank (in accordance with the bank facility). Every time we can get cash at an ATM or use as a medium of payment in accordance with the maximum amount of money we have in the bank. So this card is not a payment card, but only to provide convenience to customers of the bank in making a payment without having cash.
Debit or Credit—Which Is Better?
The answer is, it depends. How careful are you? How do you actually use your card? Can you trust yourself not to rack up a pile of debts? The features that make debit cards convenient instant access to your money, plus the ease of not having to write a check and often not having to drag out your photo ID also make fraud much easier. Unless reported quickly, theft of your debit card can quickly deplete your bank account. A thief can spend all the money in your checking account in a matter of minutes, leading to bounced checks, overdraft fees, and a major headache! This is where there’s a big difference between credit and debit cards.