What Is The Difference Between A Debit Card And A Credit Card?

What Is The Difference Between A Debit Card And A Credit Card: If you have debit and credit card, then you know the difference between both of them. Actually, a debit card is your saving and credit card is like a loan, in credit card you can buy anything and pry later. debit and credit cards both were work as similar to each other. fir you swiped your debit card at the retail store, the money was deducted directly from your bank and in credit card you at the same time but the money was deducted from your credit card not from your saving account, after credit card payment you got at least 20 days to pay your credit card bank without any interest.
What is the difference between a debit card and a credit card?

Let’s take an example assume that two customers bought a bicycle at the rate of  $150. one of the customers pay his bill by debit card and after paying the amount to the store the money was deducted from his savings account. The bank will deduct $150 from the customer’s account and he is not able to use this amount again because the bank will send this money to the retailer within three days.

The other customer who use a credit card to buy a bicycle at the rate of $150. when he swiped his credit card the credit card bank will add the purchase to his credit account and still he can buy anything from his credit card. the amount he paid to the store by using credit card, the credit card company will give him 20 to 50 days to repay his amount to be used by the customer without any interest. to know more about your credit card billing cycle click here :

A credit card was given you 20 to 50 days to repay your outstanding bill by the due date. the 20 to 50 days were count by the date you purchased. It depends on you to that which date you spend the amount. if you are not able to repay your amount by the due date then you have to pay the interest on your outstanding bill. And the interest rate of a bank is very high because this is the only way of banks earning. So also make sure that pay your bill before the due date. pay your whole amount at the end of the month so that you can save your money.

What is the difference between a debit card and a credit card?

Credit Card VS Debit Card

In a research, people found that they need a credit card to make payment, online stores or retails stores as well. or to rent something. they also feel like that it easy to carry a credit card rather than carry cash or checkbook to make payments. in credit card you are borrowing money from other banks and you have to pay them in a certain time. the debit card also provides you same to make payments. it difficult to determine which is better or when your credit card or debit card because both gives same.

Select The Right Card For The Situation

If you are using the debit card for payment then you are doing the right thing, because through debit card you are safe from credit card interest rate or due date. If you pay cash for the items you purchase that’s the best thing you are doing. through debit card, you will not be trapped in credit cards interest. You will find many hotels and loughs were not accept debit card over credit card they will prefer credit card over the debit card, why because they want a card where they can bill you for your damages. Always make sure, with the hotel and lough that they will accept debit card over a credit card.
* So people will say that use credit card over debit card because of rewards points. If you buy items by using the credit card you will receive rewards points, that you can use in other purchase. And they will advise you to use a credit card for the maximum purchase.
* If you are not using a credit card for the maximum purchase then you are not valid for reward points because credit card company gave you reward point on your spend.
* If you are using the debit card then you can stick your budget because in debit, you know you limits and you will cross it but in same case you are using credit card it is very tough to stick your budget because credit is ” buy today and pay later” and this is the only thing were you are stuck.
* If you want to take benefits of your credit card reward points then make sure that you can pay before the due date.
If you find this article helpful then please comment and share this and tell us how we make us better for you.