Having money is essential, and without it, it’s impossible to get anything done. Some forms of money make it easy to purchase things when you don’t have enough or any cash on you at all. Being able to use cards in emergency situations, or in places that only accept cards can be beneficial in a lot of ways, and therefore it’s important in being able to differentiate what a debit card and what a credit card is, especially when you’ve never has either one of them before.
Ever heard of getting things on credit? That basically means you can buy something ahead of time and pay for it later. Using a credit card is a great way to do this because you can buy something that you may not have the money for at the present time. This will give you time to save the money in order to pay the bill later. Keep in mind that the money you’re using with a credit card does not belong to you and that is the reason you have to pay a bill later on, to make up for the things that you’ve purchased with the credit card.
Credit cards come in handy for a lot of other things. They can come in the form of personal credit cards or credit cards given to you by a specific store. In this case you can only shop at that specific store that gave you the credit card. A personal credit card is what you can use at any place that accepts them.
The main downside to using credit cards happens when you’re not totally responsible with it. If you’re shopping up a storm, and not paying attention to the amount of money that’s racking up, you’ll have a hard time paying the bill later on, especially if you’re using a card from a company that wants you to pay the bill all at once instead of in installments.
That’s why it’s important to get all the information on the type of credit card you have, so you don’t find yourself in a hole later on. Having extra bills aside from the ones you already have is another reason why you should consider these things before using one. If you don’t have the extra funds to pay the bill when it’s time to, it’s best to stay away from using any credit card until you’re more financially established.
Debit cards are more simple to understand. When you’re using a debit card, it means you’re using a card that’s connected to your own money in a specific bank account. Instead of taking the money out of the bank, you can use the debit card and you won’t be billed for it later on because it’s your own money. This is what makes using a debit card more beneficial than a credit card. It’s easier to be more responsible because you’ll be paying more attention to your funds so you don’t end up going overboard, causing your bank to charge you overdraft fees. This happens when you’re spending more money from your account than you actually have. If you’re not careful this is bound to happen. If you are, there’s nothing to worry about.
Like with credit cards, you can use a debit card anywhere that accepts them, even online, making online shopping a breeze. Debit cards also have expiration dates that you have to pay attention to, but not to worry. When it’s time to use a new card, your bank automatically sends you one in the mail, allowing you to use it right away.
Both cards are similar in a lot of ways. One simply allows you to buy something ahead of time if you don’t have the money, and the other one allows you to use your own money so you don’t have to pay bills later on. This is really the only distinction between the two. I prefer using debit cards, but to each his own.