Debit Card Vs Credit Card: Which is Better?


debit cardWhen it comes to money, it pays to have a little bit of knowledge about the various different cards which are on the market. After all, consumers used debit cards 13.2bn times in 2017, meaning that there were more debit card transactions than cash payments for the first time in history.

If you are looking into getting a credit or debit card, or curious as to how they work, then it is well worth examining the differences between each. Here are some considerations regarding credit and debit cards.

Debit Card

This type of card is usually linked to the owner’s bank account, allowing them to access money which has been deposited in there. There is usually no charge for having a debit card, although most bank accounts do have an overdraft fee should you end up in your overdraft.

They are fairly essential in the modern age, given that most people now receive their pay directly into their bank account, and debit cards offer the quickest and easiest way to access this money. They can be used to pay for virtually anything, with no fees being applied. .

Credit Card

Credit cards are, in many ways, very different from debit cards. Although they allow you to make purchases in the same way as a debit card would, it is not your money which is being used, but rather your bank’s (or lender’s) money. This means that credit cards offer quick and easy access to money, but also put you in debt if you use them.

There are numerous fees that come with using a credit card. The credit which you spend will need to be paid back with (fairly hefty) interest, and many companies include a surcharge for credit card payments.

Which Should You Have?

As previously mentioned, it is difficult to get by without a debit card, and some people even have multiple cards for different bank accounts. Whilst credit cards can be useful for an emergency, they carry far more risk, and falling behind with repayments can lead to a poor credit report.

Ultimately the choice is down to each individual, but it is advisable to only take out a credit card if you can afford it, and to use it sparingly.

Credit cards and debit cards have become staple tools of modern society, but they should always be carefully managed. Both can be useful to you so long as they are used sensibly and responsibly.

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