Introducing the topic
Today I want to talk about the difference between a credit and a debit card. I know how many these card and bank terminologies confuse a simple person like me, and you. You, because why else would be reading this. And I truly understand your feelings, I mean I forget people’s names and you expect me to remember names of cards? However a thing is only difficult when it is unknown, but I will make you learn all of it with my easy way of explaining things and remember life just becomes a lot easier after reading my posts.
The difference between a credit card and debit card
A credit card allows you to borrow money from the credit card companies; banks, then you pay for your purchases with that borrowed money. Later on, you have to pay back that borrowed amount plus the interest to the bank. When you make a purchase with a credit card, the money is transferred from the credit card issuer [bank] to the merchant and you have to return the money to the issuer on a later date.
It has a limit to how much you can borrow. When you issue a card, there is a limit applied on the amount you can charge using the card. There is a range of credit limits offered to the card owner and he can choose whatever limit suites him. It allows you to buy larger purchases depending on the card limit.
It is beneficial for people employed on monthly salaries as you can do your purchases during the month without paying for those purchases and later at the end of the month when you get your salary you can return that amount.
On the other hand a debit card is linked to your own money and allows you to spend money that you own. You can only spend from the money that you have in hand, unlike in a credit card.
You put your money in a saving or checking account and spend that money. When you make a purchase, the money is transferred from your account to the merchant. As you are spending money which you already have, you don’t go in debt which can happen in credit cards.
You can use it for buying things and also to take out cash from ATM machine.
Debit cards are often used for everyday purchases like groceries, gas and clothes. And only small purchases can be made from it as they mostly have daily purchase limits, meaning there is a limit on how much you can spend in one 24-hour time period.
In summary, debit card is linked to your own money and a credit card allows you to borrow money from the card issuer.
My journal
We have covered the topic of the blog, following is just some random stuff about me, and I write this to make my blog posts long. It is actually becoming my daily journal and a personal thing as I believe no one gives it a read. Anyways I just had my first ever comment on one of my posts, How to properly brush your teeth. I never had a comment on my first post of this website which is about poetry. So when i read the comment on my blog I was blown away by that, can’t describe the feeling when you get to know someone read your words and on top of that appreciated the content. I just can’t put my feelings into words, oh..no sorry, that is actually my job, to write, to literally put my feelings into words. But honestly I don’t think I am doing a good job doing so, only a satisfactory one. But I hope to improve one day and I believe I will. Ok then, I guess that should be enough for this post. Let’s hope for the best.
Thank you for reading!
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