What are the differences between a credit card and a debit card?

In today’s world, credit cards and debit They are essential tools for conducting financial transactions online and in physical stores. Come on, in a few words: to buy on Amazon and have a coffee at the bar, you need a bank card.

However, although both cards look similar, there are significant differences between them that consumers should take into account before deciding which one to ask the bank for once the account is opened.

Today I explain to you what differences there are between credit and debit cards. And, even more important, I will try to tell you what type of client is best for each of them.

Credit and debit cards they differ mainly in how they work and how they affect our personal finances. Some are better for a type of client or user, which has certain monthly expenses, and the other is focused on people with other fiduciary needs.

Explaining the differences between a credit card and a debit card

• A Debit is linked directly to your checking or savings accounts, which means that every time you use the card, money is deducted directly from your account.
• On the other hand, a credit card allows you to borrow money to make purchases and then pay off the debt at a later date, With interests. This is usually at the end of the month.

One of the main advantages of a debit card is that it helps you stay within your budgetsince you can only spend the money you have available in your account.

Plus, you don’t have to worry about interest or late fees—you’re not using borrowed money. However, a potential drawback is that if someone steals your debit card and uses it fraudulently, the bank does not have to insure you the money spent.

On the other hand, a credit card gives you more flexibility in your purchases and expenses, since you can borrow money to make purchases that you could not otherwise afford. Also, if you use it responsibly, it can help improve your credit history, which can be helpful when obtaining loans or mortgages.

However, it’s also easy to fall into the trap of spending more than you have.which can end up being a poisoned weapon because you have to pay interest… and that’s why banks always want to sell us these cards.

So which one is better for which type of customer? If you’re looking for a financial tool to help you stay on budget, a debit card is probably the best option.

On the other hand, if what you want is the flexibility of being able to spend more than you have in cash at the time and earn points or rewards on your purchases (ideal for people who travel for work), a credit card is the best option. Now that you know everything, it is your decision to make the best decision.