Credit Cards VS Debit Cards is a comparison we have to look at, Most at times people wonder what are the differences between this two cards. A few number of people Know the Functions of the two Cards why others Don’t, So lets compare and know2 what they have in Common and also what they don’t have in Common.
Table of Contents
What is a Credit Card?
A credit card is a type of card that allows it’s User to borrow an Amount of Money at local merchants, In which the User pays later either with an interest or an agreed charge. Basically, the Card is Used for Transactions.
What is a Debit Card?
Debit Card or bank card or check card is Similar to a credit Card as it can be used to make Purchase, But the Debit Card’s withdrawal system is from it’s User’s own Account.
Read: Bank Accounts Comparison; Savings Account VS Current Accounts
Similarities Of Both Cards
The Credit cards and the Debit cards are products offered from Financial Institutions. If you look more on their Similarities, You will note that both are Made up of Plastic Materials and also bears the Name of the Bank it’s gotten from on it.
Both Cards are convenient in terms of Usage
They are accepted at the Same Place, Can be used to make Purchases.
Credit Cards VS Debit Cards
One major difference between the credit card and the debit card is that the Credit Card Charges you to your Line of credits, while Debit card on the other hand charges you from your Banking Account.
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Credit Cards
- The Money Used is being Borrowed.
- Interest are Charged, if the money is not fully paid interest will be charged on the remaining Balance.
- Pin Numbers are not used for Exchange Medium, But May be used for withdrawals.
- In Using the Credit cards, Bills are imposed on Monthly basis.
- The Method of Application is Not easy, and also depends on your Financial Assessment and details.
- Since Pin Number are Not used for Transaction, The security of the Card is at Risk, Especially if it is Misplaced.
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Debit Cards
- Money used here, is from the Owner’s Bank Account not borrowed.
- No Interest is Charged.
- Requires a Pin Number to make withdrawals or Purchases e.g through POS.
- In Using the Debit Cards, No monthly bills are imposed.
- The Method of Application is easy.
- Due to the Security Measure: i.e PIN Number, If Misplaced, No other Person can easily access the money in the Account.
In Both Cards, Security Measures should be taken, Because both cards are at risk especially when the Card Information have been Compromised. Efforts should be made to Contact the Bank Immediately, if such an incident Occurs.
See this: All Nigerian Bank Quick codes to check Account balance via Mobile Phones
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