Credit Card vs Debit Card
Many consumers now are being confused on how to distinguish Credit Card from a Debit Card. We all know the fact that they almost have the same characteristics as both of them go in a CARD appearance and can be swiped at any counters in stores and establishments, both can be use in to buy goods in supermarket, to shop at any department store, to dine in all restaurants and bars and even to fill-up gas in the gas stations.
Now this article will give you some bits of information on how to differentiate credit card from a debit card. When we say Debit Card, it is used at the ATM machine of your bank. In short, the funds or money inside the debit card is your money that you put or deposit in the bank. Now this ATM card or Debit Card can be use in different merchants and establishments of your choice. When you buy goods or services, the amount of purchase was automatically deducted to your Debit Card thus will be debited from your bank account that issued the said debit card. Of course, the balance of your bank account must be more than the cost of your purchase otherwise you will be declined in a store when you use the debit card.
Now Credit Card refers to the money of the bank issuing a credit card. In short credit card is a form of loan that the bank lend you a certain credit limit in which you can use to purchase your important needs or to get a service from an servicing establishment. When you use your credit card, the money paid for purchase is borrowed from the bank or any financial institution that issued the said credit card. At the time of issuance of credit card, as a cardholder, you agree to pay back the said amount you borrowed with interest if being paid in minimum amount upon your receipt of credit card billing statement.
Both credit cards and debit cards have terms and conditions to follow. In such case that your debit card was lost or being stolen from you, you have to immediately report it to the issuing bank before it was used by other person in some fraudulent acts and transactions. If you did not report it immediately, and the said card was being used by other person, you cannot demand from the issuing bank any replacement of the amount because it was written there in the terms and conditions.
Just for a simple financial tips, be more vigilant and as a wise consumer and in times of recession, you should know how to manage your expenses and how to use your debit card and credit card wisely in order for you to manage your expenses and savings for your future endeavours in life.
You may also read other related articles and topics on how to manage your finances specially this period of world crisis under BANKING CATEGORY and choose from those topics there in the archives. This includes Where to Invest your Money, Manage your personal Finances during recession, Improve Bad Credit History, How to Apply for a One Day Process Loan and No Annual Credit Card.
Related Articles
If you love this post, kindly subscribe to my feeds via RSS Feeds or via e-mail if you want more updates. Happy Blogging!!!
Comments
Feel free to leave a comment...
-
CLICK HERE TO SUBSCRIBE 
Recent PostStats
Translator
