Difference Between Debit And Credit Card

While living in a nation that thrives on money it is essential to be able to manage money wisely. A popular payment method is swiping a plastic card; it may be either a debit or credit card. Despite the fact that both cards may look alike, they share some key similarities and differences as well. Having knowledge on these different types of cards can help someone decide on which may be a better option when it comes to completing transactions. The information provided will vary with different types of credit and debit cards, these are the most common. For starters, both debit and credit cards are a more convenient option than carrying cash. These cards are the size of a standard business card which makes them convenient to carry around. People …show more content…
Whether gas needs to be pumped or a room needs to be reserved at a hotel room, either card will make accessible payment as long as sufficient funds are available. Credit cards and debit cards can be used to make online and phone payments. Both types of cards are available for usage worldwide. Tips can also be added to both credit and debit cards. Another convenience offered by both credit and debit cards is that they maintain record of transactions with monthly statements. The monthly statements provide a detailed list of the card activity including date and time of transactions. Monthly statements also include financial information such as current balance, interest rates and a number to customer service. The monthly statement can be accessed through mail or online. Monthly statements should be inspected with cautious to make certain that there all no …show more content…
Different types of credit cards will charge different interest rates. Interest rate is a percentage charged for the loaned money. Interest rates will depend on the balance on the account and the length of time in which the money is being paid back. This may seem like a turn off to having a credit card, however, proper handling of a credit card will work in someone’s favor. Some credit card companies may offer a period of time with no interest rate charges. Debit cards may charge monthly fees if the card is not being used a certain amount of times in a month or if a required balance is not maintained on the account. Debit cards may also charge overdraft fees if the money being spent is not in the account, or it will decline the transaction. A decline in the transaction will not cost fees, maybe just some