Debit Card vs Credit Card

By On Tuesday, March 1st, 2016 Categories : Serba-Serbi
Catatan si Boy – I this era, still not many people know and use credit card or debit card for daily marketing activities. This is a condition in Indonesia especially. Now, I try to share the differences between Credit card and Debit card I got from any sources.
Debit Card vs Credit Card
Debit and credit cards offer more than a way to access money without having to carry around cash or a bulky checkbook. Debit cards are like digitized versions of checkbooks; they are linked to your bank account (usually a checking account), and money is debited (withdrawn) from the account as soon as the transaction occurs. Credit cards
are different; they offer a line of credit (i.e., a loan) that is
interest-free if the monthly credit card bill is paid on time. Instead
of being connected to a personal bank account, a credit card is
connected to the bank or financial institution that issued the card. So
when you use a credit card, the issuer pays the merchant and you go into
debt to the card issuer.
Most debit cards are free with a checking account at a bank or credit union.
They can also be used to conveniently withdraw cash from ATMs. Credit
cards have the advantage of rewards programs but such cards often
require an annual fee to use. Financial responsibility is a big factor
in credit card use; it is easy to overspend and then get buried in
overwhelming credit card debt at a very high interest rates.
This comparison provides a detailed overview of what debit and
credit cards are, their types, associated fees, and pros and cons.

Fundamental Comparison between Credit Card and Debit Card

Understanding the difference between a debit card and credit card
allows you to make wise financial decisions. Debit cards and credit
cards are accepted at the same places. Debit cards all carry the symbol
of one of the major types of credit cards on them, and can be used
anywhere that credit cards are accepted. They both offer convenience.
The fundamental difference between a debit card and a credit card account is where the cards pull the money. A debit card takes it from your banking account and a credit card charges it to your line of credit.

 

Debit Card vs Credit Card | Si Boy | 4.5
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