The increase in technology had made it lot much easier for the modern man to have access to cash that influence a lot the field of business. In this regard, the credit and debit cards are doing much to help the people with the cash when they need it.
Now you are wondering what the credit and debit cards are? What is the difference between the credit and debit cards? And last but not the least what are the benefits of using these cards?
I am going to end your research here as I am writing this article to answer all your questions regarding the credit and debit cards.
Difference between Credit and Debit Cards:
As debits cards and credit cards are used to withdraw cash without having to carry the cash and the bulky check books, both the cards are mistakenly categorized as the same thing. But you need to have differentiation between the credit cards and cards. Credit cards vary a lot from the debit cards. The comparison between debit cards and credit cards will surely explain you the difference between those two cards:
What is credit Card?
A credit card is actually a card that allows you to borrow some money from the bank or merchants in small amounts. The credit card puts money towards the issuer and the company of the credit card charges the interests on the amount that you had borrowed. The time limit of returning the money to the credit card company is generally a grace time period that offers the period of almost 30 days. If the limit exceeds the 30 days your interest would be doubled.
Advantages of Credit Cards:
Credit card is very useful for the people who are shopaholic and are not having the habit of carrying enough money with them all the time. Besides these, following are the advantages of credit cards:
- Convenience: A credit card allows you to have the cash with the single card. This can save your time and trouble for carrying the cash all the time. The credit cards are handy and easy to use thus it saves the time for searching the ATM machines.
- Instant Cash: credit cards allow you to have the easy access to cash whenever you need it. These cards allow the cash advances quick, easy and convenient when your available cash is out of your range.
What is Debit Cards?
Debit cards are the convenient cash providing cards whenever you need the money. This card is just like the credit card but it wok in a different manner. It does not include the borrowing money but instead it withdraws the cash directly from your bank account by using the ATM machines nearby. To have the instant cash access from the debit card, you all need to maintain the cash balance in your bank account.
Advantages of Debit Cards:
- Convenient:it is the most important advantage that everyone really needs. You don’t have to carry the cash instead you have to carry the card that hardly weighs a pound.
- Easier to get compared to Credit Cards: debit cards save you from getting into the lengthy process of credit cards. You just need to open your bank account and debit card is available for use.