Difference between Credit and Debit cards
Credit: Every time you use a credit card, you are actually borrowing money that is made available to you by bank or other financial institution. The institution pays the debt to the vendor, and in turn, you pay the money back to the institution. By signing up for a credit card, you agree to pay back the money that you borrowed, in addition to any interest drawn on the amount you borrowed.
Debit: Debit cards take funds directly from the money that you have in your bank account in a sense acting like a check, but faster. With a debit card, you don't have to carry cash checks, and it is very convenient to shop at a variety of places including gas stations, grocery stores restaurants, and retail stores. They provide instant access to your money and are accepted worldwide.
In simple words, debit card uses our own money and credit card uses borrowed money.
Some tips, to use a CREDIT card wisely hope u'll find it useful :-)
1. You have a 50 or 60 days billing cycle. Enquire about it and do ur transactions on the beginning of the cycle which gives you an advantage of higher credit days.
2. Pay your credit card bills on time because the interest rates when annualised comes to a very high total which will be a headache to you!
3. Spend wisely so that you can afford to repay it.
Debit: Debit cards take funds directly from the money that you have in your bank account in a sense acting like a check, but faster. With a debit card, you don't have to carry cash checks, and it is very convenient to shop at a variety of places including gas stations, grocery stores restaurants, and retail stores. They provide instant access to your money and are accepted worldwide.
In simple words, debit card uses our own money and credit card uses borrowed money.
Some tips, to use a CREDIT card wisely hope u'll find it useful :-)
Comments