The Differences 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 to borrow money in small amount to buy things. This credit card isn’t linked to your current accoun, there is limitation in credit card which is the l imit RM10k. It is up to pre-arranged limit and pay for them a later date. If you are purchasing things the cost of the purchase is added to your credit card account. This means if there are any transactions the related to credit the cost will be added and you will also get statement every month which is, you need to pay it with no interest or paying atleast a minimum amount and spreading the payment over a period of time. Therefore, the quicker you pay your balance, the less interest you pay.
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Signup bonuses
Credit Card offer a large number of rewards when you used it responsibly while debit card only offers zero rewards or a very small rewards. For example, customers which have a good credit can get approved to credit cards that offer signup bonuses up to RM50 to RM250 and sometimes even more. Other than large number of points that can be reedemed for rewards like earn discount on flights or even a free
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