Difference between Credit card & Debit card

Difference between

 Credit card & Debit card

 Both debit and credit cards are used to pay for goods or services without the need to pay cash or write a check. Now here you will know about difference between credit card and debit card.

What is the difference?

When you use your debit card, the money will be deducted from your account almost instantly. When you use a credit card, the amount is deducted from your credit limit, which means you will pay later, giving you more time to pay. Deciding when to pay is often complicated, and it is best to use all cards. Consider using a debit card for everyday purchases because you will find that the money is deducted from your account immediately. For big things like renting a car or hotel room, you can use a credit card to save money when paying.

Advantages of a Debit Card

In addition to providing convenience when left without cash, debit cards also have many advantages for users. Don't add to the debt. Using a debit card instead of a credit card is a great way to reduce your chances of getting into debt. This payment method will help you keep all the money in your checking account in your budget. If you spend more than your checking account allows, your bank will charge you a refund or restocking fee.

A debit card allows you to withdraw money easily. You can use your debit card to withdraw money from the ATM. Some stores also allow you to get a "cash refund" by cashing your check for more cash than the initial transaction and sending cash upon receipt.

Pay now to avoid paying fees later. Since the money for purchases made with your credit card is deducted directly from your account, you do not have to worry about receiving an invoice at the end of the month. This also means you don't have to worry about the interest rate on that bill. Using a debit card is a great way to manage your spending, but beware of late fees and chargebacks.

Advantages of a Credit Card

There are many advantages of using a credit card. Credit cards allow you to pay more for your purchases. At the end of your monthly credit card bill, you will be sent a statement of the amount you owe for the purchases you made in the last 30 days. Depending on when you made your purchase, you have up to a few weeks to pay off your credit card. Technically, you only pay the minimum amount each month, which could lead to future debt.

For example, you'll incur the expense if you spend $1,000 monthly, only pay the $15 minimum monthly fee, and spend again the next month. The credit card company will charge you monthly interest rates if you don't pay your bill in full. Helpful advice is to repay as much as possible each month to get better credit and avoid debt.

Using a credit card can build your credit history. Your credit history is created every time you purchase with your credit card and pay it back on time. You must have good credit when you apply for a loan or buy a car or a house. Paying off your credit card every month will demonstrate your ability to pay off your debts and help increase your credit score.

It is easy to respond to emergencies. Having a credit card is helpful and convenient in case of an emergency. If you suddenly need to pay for home repairs, you can charge the amount to your credit card. In this case, you may not be ready for debt, so your credit card company will extend your credit limit until you pay your bill at the end of the month. Again, this gives you more time to pay those bills you don't want to pay.

Many people have debit and credit cards. They use the advantages and disadvantages of debit and credit cards, as each card serves a different purpose. Instead of choosing one or the other, consider both.