Brief Differences Between A Credit Card And A Debit Card

Most of us already know the difference between these two cards, but so
many people are still ignorant of it. So today we will briefly discuss
on the difference
between a credit card and a debit card.



CREDIT CARD: These kind of cards are not connected/linked with your
bank accounts. In other words, your bank accounts are not charged when
transactions are carried out with your credit card. Rather, all
charges incurred are
paid by your card issuer.
Note, incurred charges during the
transactions will be paid back by you to your card issuer within a
stipulated period of time with little interest rate. The interest
rate attached to your bills tend to increase when you don't pay up
your bill within the
stipulated time. Limits on spending are set on your card depending on
your trustworthiness.
Also note that these kind of cards are very difficult to get because
there must be substantial proof that you will be able to
pay any incurred debt during your use of the card. So in my own words
i call these kinds of cards "CASHLESS LOAN"


DEBIT CARD: Debit cards are kind of the opposite of credit cards.
These cards are connected/linked to your bank accounts.
Any transaction carried out with this card is charged directly from
the funds in your bank account. Every account holder is
eligible for a debit card. There are no interest rate attached to your
transactions when you use your debit card.


Like i said this will be a very brief
discussion. And i hope you can now differentiate between the two.