| Credit and debit cards both sound the same, however | | | | cash flow out in the short term. |
| there are some significant differences between the | | | | A debit card works completely differently. In fact the |
| two plastic cards. Much of the data that appears on | | | | giveaway is in the name because the word |
| both credit cards and debit cards are similar, such as | | | | ‘debit’ actually means the word |
| start and end dates, signature on the back, security | | | | ‘subtract’, meaning that when you use your |
| code on the back, full name and both plastic cards fit | | | | debit card, you are directly subtracting from your bank |
| neatly into our wallets. So as consumers debit and | | | | balance. The plus side here is your not borrowing any |
| credit cards do seem extremely similar however the | | | | money you don’t have, so no high APR rates. The |
| services that the two cards offer are completely | | | | down side is you need to be earning money to use it |
| different. | | | | really and can only spend what you have. So in many |
| Firstly if we look at a credit card and what the service | | | | ways the debit cards we have in our wallets, is |
| actually offers its customers. The two main brands of | | | | actually modern day cash or as the popular term goes |
| credit card that we all will have heard of are Master | | | | ‘plastic cash’. |
| Card and Visa Credit however there are many other | | | | To sum up in the battle of the plastic cards, debit card |
| cards on the market. What a credit card actually | | | | versus credit card, there are pros and cons for both. It |
| allows a person to do is too purchase goods or | | | | depends entirely on circumstances and whether you |
| services on credit, and so the money is not deducted | | | | are getting a decent regular income. In terms of getting |
| from your account immediately but generally is at the | | | | into debt, the safe option is to stick with debit cards |
| end of the month. | | | | and avoid credit cards and the nasty APR that comes |
| What you are in fact doing every time you use your | | | | with them. What is apparent is that since a debit card |
| credit card is taking a small loan out. So at the end of | | | | is directly linked to your bank account there is a larger |
| the month when it is time to pay of the card, you | | | | risk of an unauthorised person pinching all your money. |
| normally will pay interest over and above what you | | | | With a credit card you can have up to 60 days |
| spent (the APR will depend on what terms you have | | | | (depending on the credit company) to pay back the |
| with the particular credit card company). What you can | | | | amount and normally have a credit limit, so there are |
| also do is choose to pay your amount off in stages, | | | | more precautions for credit card fraud prevention. |
| which again will incur more interest but may help your | | | | |