As a result, even if you find your own purse, the cash will probably no longer be there. Credit cards and debit cards used to make electronic payments are safer, because it is much more difficult for shrimp to get their victim’s money. In addition, if a person quickly notices that a payment card or charge is missing, then both the debit card and the credit card can be blocked so that nothing can be done any longer.
Such payment cards can be obtained from banks with a current account
However, many people still do not know the difference between debit cards and credit cards – with both, it is possible to buy milk and bread in the store. However, there are some quite significant differences that are worth knowing to be able to choose one of the payment cards to use. Debit card is a payment card linked to the bank’s customer’s current account. The debit card holder can use this payment card both in stores and at other points of sale to pay for purchases or services. You can also make various purchases over the Internet, pay bills, place orders, and more. ATMs can also withdraw cash through a debit card.
There is a lot of money available on the debit card as the user card on the bank account. Once the specific account balance is $ 0.00, it is no longer possible to make purchases and withdraw cash from your debit card. Likewise, if for example the purchase you make in the store is EUR 18.99 and the debit card holder’s bank account is only EUR 15, so the purchase will not be possible. It is also the most important but not the only difference between a debit card and a credit card. A credit card is also a payment card which offers the same options as a debit card and more. Specifically, credit card payments can be made in shops and other institutions except the electronic payment method is offered at all. You can also shop and do other online services.
As with a debit card
It is also possible to withdraw cash from ATMs and make a cash deposit into your account. However, if the debit card holders can no longer use their payment card if the bank account is almost empty, the credit card holders do not have this problem. The credit card is linked to the person’s current account, however, when concluding a credit card agreement with the bank, the bank gives the opportunity to receive a bank loan when advising the client’s income and credit history.
This means that the credit card holder has a credit limit that can be used, if necessary, if there is no money left in the account itself. Of course, the amount of credit used must also be repaid because the loan is and remains a loan. It is one of the types of credit and it also has a fixed interest rate set by each bank, individually advising the client. However, the average annual interest rate (APR) is 10 – 30%. However, banks offer credit card holders favorable credit limit terms – if the loan is repaid in full within a month, interest may not apply. Since a credit card is one of the types of cash loans, it also affects credit card user credit, unlike debit cards.
If the loans are repaid to the bank in time
then it is possible to improve your credit history. In addition, maintaining a good credit with the bank may also increase the credit limit over time; it can also be increased if the income level of a person has become higher. However, the available credit limit can also be considered as one of the drawbacks of a credit card – if a person is unable to repay the loans, he / she damages his or her credit history and may face considerable financial difficulties. Therefore, it is always important for credit card holders to keep track of all transactions.
A credit card provides more benefits than a debit card in other cases. For example, if you often stay abroad, it is more advantageous to use a credit card – it has different discount programs, it is possible to book hotels, pay for parking, etc. Although the debit card also offers similar facilities, the scope of the credit card is wider in this respect. Depending on the credit card levels, travel insurance and other services are also offered.
There is also a significant difference in how both of these cards work – an internet connection is required to make a debit card payment; In the case of a credit card it is not even necessary because of the solvency of the credit card holder the head bank. But with the various benefits that are possible with a credit card, it is more costly for a person – even though the card’s annual service fee is much higher than that of a debit card.