Difference Between Debit Card And Credit Card

What is your preference between a debit card and a credit card? Some people may like the debit card better, and some people may prefer the credit card; I prefer the debit card. It is not because one is better than another; instead, it is because these two types of cards have their own specific characteristics, and the debit card’s characteristics fit me better. Thus, comparing these two cards’ features, people will choose one over another and find their best fit according to the two cards’ differences, including application, transaction, safety, and financial interest. First of all, the requirements for the two cards’ application are different. It is easier to have a debit card, because transacting a debit card requires fewer conditions …show more content…
Unlike when I use the debit card, I do not need any money on my credit card before I purchase anything, unless the amount of money that I spend is over the limit that the bank has set for my credit card; so I am using the money I do not have yet. However, I can still use a certain amount of money ahead, but it means I owe the bank the same amount of money that I need to pay the bank back in the future. Usually, the bank has also set a date that I have to pay back without paying extra interest; but, if I delay the payment, the bank will charge me additional interest for not paying on time until I complete my whole payment. Also, according to each person’s financial condition, the bank has set different monetary limits that people cannot exceed (“Credit or debit? Each card type has pros and cons” 52). As a student, I do not have a job, so according to my situation, some banks would not allow me to open a credit card account. Even if I were able to open a bank account, the bank would set only a small amount of money as my limit. Therefore, opening a debit card account is a better choice for people like me who do not have static capital …show more content…
Also, with a larger amount of savings on my debit card, the interest will be higher as well. Saving money on a credit card will not be beneficial, because there is no interest on savings for credit cards. Moreover, using a debit card helps me be organized and responsible. My parents deposit three months’ living expenses to my debit card account at one time, and I am the one who arranges how to spend my money. Because I cannot overdraw, I am forced to be aware of how much money I still have left and how much I need to spend on food and other necessities; then, with the rest of the money, I can buy some clothes or spend on fun activities. I need to plan every cost ahead; if not, it is easy to spend too much money at the beginning of each month. After practicing planning ahead before spending money, I have started to be organized naturally and more responsible. Unlike the debit card, it is easier to overdraw by using a credit card, because the most significant characteristic of credit cards is encouraging people to overdraw. A credit card’s design easily makes me spend money that I may not be able to pay back and, sometimes, I do not even realize I