When we are in our Bank and we propose (or have been convinced) to make us a payment card, the question arises: debit or credit.
What is the difference between them? Basically with a debit card the account charge is direct. In the case of credit, it is a means of financing and allows you to buy without disbursing the money on the spot.
Controlling spending
A determining factor in this choice between debit or credit is the issue of spending control. The basic family economy has been fostering a increase in the use of debit cards compared to credit cards. There has also been a decrease in deferred payments.
The key, as we see, is that the debit card is a payment tool that automatically generates a charge on the checking account the client's. In the case of the credit card, these charges are normally made at the beginning of each month.
Debit card features
- With them you keep a perfect control of what you spend. In addition to being able to withdraw money in offices and ATMs, it is used as payment in shops.
- The purchase amount generates a direct charge, without delay, in the client's checking account.
- They are very useful for everyday shopping.
- For its use it is necessary have a checking account at the bank card issuer.
- Usually there a fixed daily limit by the bank, to make payment for purchases.
Credit card peculiarities
As we have seen, the main difference is that credit cards are a means of payment, but are also a form of financing. They allow you to make purchases without having to pay all the money on the spot and with the possibility of returning it in several installments.
- Unlike debit cards, in credit, it is not essential to have funds in the bank account at the time of purchase.
- It is normally required for the issuance of this card the direct debit of the payroll or the accreditation of stable income.
- El available credit limit must be specified in the card contract, but it can also vary over time.
Image sources: Stamp Legal Abogados / cnbc.com