Before deciding which type of card is best for you, it is important to know the difference between different types of cards. Here we go through the difference between credit cards, credit cards and debit cards.
What is a credit card?
Credit cards are a kind of collection name and are divided into bank cards, debit cards and credit cards. Common to all types of credit cards is that they are a form of payment that makes it possible to pay for goods and services where the card is accepted as a payment method.
A credit card is a form of credit card that is associated with credit from a bank or credit institution. With a credit card, you can usually choose to pay off the entire amount you purchased for each month or pay off a smaller portion of the amount. If you choose not to pay the full amount, interest will be added. The interest rate varies between different credit cards and credit institutions so it is important that you carefully compare different credit cards depending on how you plan to use your credit card.
What is a debit card?
Like a credit card, a Debit Card has a certain credit limit, depending on your ability to pay, your personal finances and the limitations of the debit card. You can also set a lower credit limit according to your wishes. What mainly distinguishes a debit card from a credit card is the way you pay when your invoice arrives. With a debit card, you have to pay off the entire billing amount at once while you can choose to make smaller installments but with interest applied with a credit card.
With a bank card, you use the money you have in your account. The card is linked directly to your bank account, which means that your withdrawals and purchases are deducted immediately, which makes it impossible to overdraw a bank card and risk paying interest on the debt. A debit card is good for those who do not have good control of your personal finances because you cannot spend more money than you have.