Home » News Articles » Clear Lines Of Distinction: Debit Cards Vs Credit Cards
Credit Card Transaction

Clear Lines Of Distinction: Debit Cards Vs Credit Cards

As an aware learner, you must have had curious instincts to know the differences between credit cards and debit cards, right?

Debit Cards and Credit Cards are two primary transaction methods for most of your day-to-day transactions. Be it personal bill payments or huge professional transactions. Debit cards and credit cards can be used differently for effective financial motives without actual need of cash in hand. Both of these cards appeal to be quite similar in their functionality giving reasons to confuse.

Credit Card Consolidation Loan which is one of the majorly acquired loans online and offline. But to note, it’s entirely based upon credit card consolidation debts. (Whereas debit cards have nothing to do with debts, unlike credit cards) So, clearly depicting there are minutely notable distinctions between credit cards and debit cards.

So, there you go!! Get to learn some quick and interesting information about credit cards and debit cards. The basic list of differences between credit and debit cards would be also taken into prior consideration.

Credit cards:

  • Credit cards allow you to make prior transactions just like through debit cards. (But there are certain sets of differences which you’ll come to know later) Credit cards take charge of your line of credit as a highlighting feature. Your credit cards and limits are decided by universal Credit Bureaus namely: Experian, TransUnion and Equifax.
  • If you’ve acquired some Credit Card Consolidation Debt Loans for yourselves, doesn’t mean too much consolidating your credit card debts is a good idea.
  • Keep in mind, your credit limits aren’t plagued along while performing credit transactions. You could end up in a terrible debt cycle if you’ve been casually doing so.
  • Credit cards are a much complicated and sensitive way to transact due to repayments you’ll have to comply with, regularly. However, they are also preferred due to immediate access to your cash they give you.

Debit Cards:

debit card

  • Debit cards involve transactions which are alternatives to your immediate need for cash. You can use a debit card to make immediate transactions/ payments without any cash in pocket. Debit cards are usually connected with your bank’s account while you make your payments using debit cards.
  • The good thing is you don’t need to carry an unnecessary burden of cash in your pocket everytime. Debit cards can be swiped along wherever you go for minor, semi major or even major transactions. The only difference while paying through a debit card would be that the receiver has to wait for sometime to get cash into his hands.

How do debit card transactions work?

Once you swipe your debit card in an ATM machine (the usual way), your linked account receives a transaction request. The request is processed and within two-three days time, your merchant shall receive the prompted amount into their accounts. Though the process seems time consuming, but is usually processed quickly without any obligations.

  • What makes the set of differences between a debit card and a credit card?

Debit cards almost appeal similar to functions of a credit card except for a few aspects. The following set of parameters could distinguish well between credit cards and debit cards:

  • Interest rates:

Debit cards: Debit cards, usually linked to your bank accounts, involve no interest rates. Once you process a transaction to be completed, no interest rates shall be induced into your cards. All depends however, how well you’ve maintained your bank balance/ amount.

Credit Cards: On the contrary, in credit cards, interest rates are induced once you fail to recover your debit amount from your credit cards. The reason being your credit card is in control of a certain line of credit. The line of credit implies a type of debt that you requested while transacting from your credit cards.

  • Financial links and limits:

Debit cards: Your bank account’s balance is the actual limit to your smooth transactions. The more loaded your bank account is, the more uninterrupted your debit cards can be used.

Credit cards:Your credit limits are a result of your credit histories. Credit Bureaus analyse your past credit transactional activities. To which a certain credit limit is allowed to your credit card. This means you need to have an eye over your credit activities.

  • Effect over your credit scores and reports:

Debit cards: Debit cards have no connection with your credit scores and reports. So, whatever way your transactions using debit cards go, has only to affect your checking account. None of your credit reports is to be affected.

Credit cards: Credit cards on the other hand, is the primary source to decide your credit scores. Thus credit cards play an important role in maintaining your credit reports. Transactions involving your credit cards shall highly influence your future credit reports as well. Keep an eye upon your credit transactions to be in a good credit score range.

  • Consolidation debts:

Debit cards: Debit cards have nothing to do with your debts consolidation. This is because you can simply schedule/ pay for your bills through your checking account.

Credit cards: No doubt, credit card consolidation is a key feature of credit cards. Credit cards can be used for accumulating your current debt transactions as a single debt. But, this debt needs to be repaid within certain limits for defending your credit scores. (Also, for holding your credit card eligibility)

  • Transaction details:

Debit cards: Debit cards are accessible and processed through an ATM (Automated Teller Machines) available around you. Also, you can use your debit cards for online transactions as well. You need to have a Personal Identification Number as an optional way to make transactions. You can check-in through your bank’s server regarding current/ past transaction details.

Credit card transaction

Credit cards: Credit cards can be accessed in a way similar to debit cards. However, if you wish to have your online credit transaction details accessed, you can contact Credit Bureau specialists. They can request for your credit reports containing your credit details over certain intervals of time.

  • Got the easy differences between debit cards and credit cards easy?

Being a curious learner, (even if you’re a young student too) making a clear line of distinction between credit card and debit cards makes a smart learning. Hope the above differences made a success in your understanding of debit cards and credit cards. Can you now purposely make through your credit and debit cards without any confusion? Keep learning and exploring!!


Sponsored Articles


Do you have a news tip? Call us at (661) 298-1220, or send an email to newstip@hometownstation.com. Don’t miss a thing. Get breaking KHTS Santa Clarita News Alerts delivered right to your inbox. Report a typo or error, email Corrections@hometownstation.com

KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes in a combination of news, traffic, sports, and features along with your favorite adult contemporary hits. Santa Clarita news and features are delivered throughout the day over our airwaves, on our website and through a variety of social media platforms. Our KHTS national award-winning daily news briefs are now read daily by 34,000+ residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. The station streams its talk shows over the web, reaching a potentially worldwide audience. Follow @KHTSRadio on Facebook, Twitter, and Instagram.

KHTS AM 1220 & FM 98.1 - Santa Clarita Radio - Santa Clarita News

Clear Lines Of Distinction: Debit Cards Vs Credit Cards

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.

About KHTS Articles