To understand the difference between debit and credit, first, we need to understand the two different terms separately –
Debit refers to deduction, whereas credit refers to addition. When you get an alert for money being debited from your account, there has been a deduction of money from the account whereas, and a credit alert means that you have received the money in your account.
What is a debit card?
A debit card is a card where you store your money as use it accordingly for purchase with a deduction from your savings. It is also used to withdraw money or cash from your savings. It helps in the electronic transfer of money. You usually get a debit card while you open a new bank account. It comes along with all the other bank documents provided initially to the new account holder. It works by debiting the money, which means the money deduction process.
What is a credit card?
A credit card works by providing you with a pre-approved money limit, and this means that the card already has money stored up for you, which means pre-cited money within a limit, and you can shop with this money by paying for the same later. So this mechanism works by the addition of money to the account. It helps make urgent and instant payments and provides money assistance in times when you want to go for a vacation or shop for a wedding etc.
Which is a better option for you?
A debit card can help to keep your money safe and stored within itself. It saves you from the mess of carrying cash and makes sure that you don’t lose our money anywhere and hence you can use the money via electronic medium to make payments.
On the other hand, a credit card provides you with financial assistance in time of need when you don’t have enough cash or money in your bank account. It provides you relief to pay later, and you don’t have to lose hope while shopping or even during an emergency.
Both the credit cards and debit cards have a very similar appearance and work with a secure password for any type of transactions both the systems have their benefits and may suit a person according to their need and demand.
June 21, 2023
October 19, 2022
June 11, 2021
- The Impact of Lawsuit Loans on the Legal System October 31, 2023
- Sector Rotation Strategies using TradingView August 26, 2023
- Trading psychology: Advanced techniques for mastering emotions and staying disciplined August 3, 2023
- The Practical Reasons for Taking Out Loans and Responsible Borrowing July 26, 2023
- Different Types of Kindling and How to Choose the Right One July 7, 2023