Having a credit card or debit card makes our life easier in terms of shopping and paying. They might be different from each other but they function the same. You can go shopping without cash in your wallet anytime you prefer, as long as you bring your card and you shop in-store that accepts a card as a payment method.
What’s the Difference Between the two cards?
A credit card gives you access to a line of debt issued by a bank while a Debit Card deducts money directly from your bank account.
Which is Better a Debit Card or Credit Card?
Credit Card Features
If you use a credit card to purchase a big amount item, you have an option to pay it in installment. In addition, there are credit cards that were being offered for low-income workers which is great.
It’s best to use a credit card when you’re booking a travel ticket especially if you’re on a tight budget since credit cards will allow you to manage your finances if you travel frequently.
Online Shopping Purposes
If you’re a person who loves shopping online, using a credit card is a perfect option for you, why? because credit cards offer more protection against unauthorized transactions rather than debit cards.
Reward and Promos
If you use a credit card for a long time you will be able to accumulate points and rewards which you can use if you want to, especially if you always use your credit card in major purchases. However, do note that you will only be able to get rewards or point if you pay the full balance each month and on time.
Creating a Good Credit History
Having a good credit card history is an advantage because you can use it if you wanted to apply for a major loan in the future because good credit history is usually the basis of banks if they are going to approved or deny your application. So if you wanted to build a good credit history, having a credit card is perfect for you.
Debit Card Features
Free Withdrawal Charge
If you need cash urgently, and you use your debit card to withdraw cash, you don’t have to pay any transaction charge unlike when you use a credit card, you will be paying cash advance fees and interest rates.
Stick to your budget
A credit card is best to be used in everyday purchases, or small amount purchases since it will be deducted directly to your bank account and helps you minimize your expenses.
If you use a debit card, you will be able to control your spending habits because unlike a credit card, a debit card makes it impossible for you to spend money you don’t have, in that way you will not be drowned in debts.
Both cards offer us convenience, so the decision still depends on you. Do choose what you think best suits you and your lifestyle. Also, choose what you think will benefit you. Having these cards will help you be responsible when it comes financially. Just remember that once you got a card be a responsible cardholder and payor.