What’s the Difference Between Credit Card and Debit Card?
Both credit cards and debit cards are plastic cards that people can use to make transactions and withdraw money from the ATM, albeit in different ways. The two cards are remarkably similar, but they have their differences due to how the payments are handled.
Cardholders can use credit cards to borrow money from the bank and make purchases through installment plans, online, and others. Since people can only use credit cards by borrowing from a line of credit, there’s lesser worry about getting hacked and losing money.
Credit cards are also different from debit cards since people can only build up a good credit score from the former. The risk of using credit cards is minimized as long as the cardholder can detect any questionable expenditures made with the card by checking their statements and reporting them directly to the bank.
The debit card handles money differently since cardholders use the funds deposited into their account for their expenses and withdrawals. Debit cards are perfect for controlling people’s bad spending habits evident with credit card application ph users who max out their credit limit since debit cards keep people from spending money they don’t have.
Debit cards are also suitable for cash withdrawals.