Difference Between Credit Card And Debit Card

Decent Essays
a)The differences between credit card and debit card

1. Debit card
It is used to pay for goods in shop but must have sufficient money in it to allow the transactions. If you are buying things with credit card, you are using your own money. Debit card also canbe used to withdraw money at cash machine. There is a limit to withdraw money as long as you have sufficient money in it. The money are taken automatically from current account when you spend it and it will be deducted from the account. Debit card also doesn’t have interest, you don’t need to pay any interest because you don’t have monthly statement like credit card.

2. Credit Card
Credit card is a credit facility that enables you to buy things immediately credit card allows you
…show more content…
2.Don’t own too many credit cards
Owning multiple credit card means just tend us to spend more because we have many credit card which mean higher balance amount. Furthermore, this also means that you need to pay a large bills and higher amount of debt.

3.Use the balance transfer facility
You can transfer your balance from one credit card to another. Close all balances on credit cards. In other word, don’t use multiple credit cards, just keep one to use. If you have too many credit cards, you have to pay multiple account and remembers multiple date but if you only have one credit cards, you just only need to pay one account and remembers one date only.

4.Convert payments to EMIs
When you are unable to pay back the entire outstanding bill on your credit card, you just can go to the bank and explain your financial situation to them. Request your outstanding bill to be converted to EMI facility. You surely will be aware of the amount that you need to pay monthly and this also will ensure you have only necessary funds in your
Get Access