What is Credit Card and Debit Card?
Most of the people have this confusion- “what is credit card and debit card?”. A credit card and a debit card may look the same, but they work differently.
A debit card is linked directly to your bank account. When you swipe it or use it online, the money is instantly deducted from your account balance. It’s like spending your own money.
A credit card, on the other hand, lets you borrow money from the bank to make purchases. You can spend now and pay later, either by clearing the full bill by the due date or paying a minimum amount and carrying the rest forward (which will incur interest).
Debit cards are great for budgeting and staying within your means, while credit cards are useful for building a credit score, earning rewards, and managing emergency expenses.