In everyday life, bank cards have become indispensable tools for managing our finances. However, it is not always clear what the difference between credit and debit cards is, and in which cases it is appropriate to use one or the other.
A debit card is directly linked to your bank account. Each time you use it, the money is deducted from your available balance at the time of the transaction. It’s like carrying cash in your wallet, but digitally.
For example, if you pay in a shop using the POS (Point of Sale Terminal), the amount you spend will be instantly withdrawn from your account. This type of card is ideal for keeping control over your spending, as it does not allow you to spend more than you have available.
The credit card, on the other hand, functions as a kind of temporary loan offered by your bank. When you use it, money is not deducted from your account on the spot, but the bank advances the payment and you pay it back later, on an agreed date.
An important detail is that you can usually choose whether to pay off the entire amount spent at the end of the month or in instalments, which adds flexibility, but may also involve interest payments.
- Origin of money: With a debit card, you use your own money. With credit, you use borrowed funds.
- Expenditure control: The debit card helps you not to spend more than you have, while the credit card may offer a larger margin, but requires more financial discipline.
- Charges: Debit card charges are immediate; credit card charges are deferred until the settlement date and may incur interest.
- Specific uses: Credit cards are often required for certain transactions, such as renting a car, making reservations at certain hotels or booking certain activities that require a deposit.
Imagine you are in a restaurant and you decide to pay by card. If you use a debit card, the amount will be deducted from your account instantly, helping you to keep track of your spending. On the other hand, if you prefer to pay by credit card, you will have room to pay at a later date – ideal if you prefer to organise your finances at the end of the month, for example.
The debit card can be a great ally for everyday expenses such as shopping at the supermarket or using public transport. The credit card, on the other hand, is more useful for large purchases, emergencies or when you need flexibility in payment terms.
- Organise your expenses: Use the debit card for everyday purchases and the credit card only in specific or planned situations.
- Avoid unnecessary debt: If you decide to use credit, make sure you are able to pay the amount by the due date so as not to generate interest.
- Security: Activate notifications to track your movements and protect yourself against possible fraud.
Knowing the difference between credit and debit cards will allow you to make the most of their advantages and better manage your finances. These are just a few recommendations, the most important thing is to assess your needs to choose the card that best suits your lifestyle.
