Last Updated on March 29, 2022 by Martins
Find out what is the difference between credit card and debit card. And also how to generate test credit card online free.
A credit card is basically an amount credited and allowed by the bank to you based on your credit score. The credit card is just a tool to spend that allowed credit. You pay the bank back in terms of monthly installments which are decided by the bank.
If in some case you are not able to provide the bank your used credit amount back in time you are charged interest on that. If you are not able to give that as well you are charged more interest on the amount plus the interest before.
In developed countries like the USA, UK, Canada, and Australia credit cards have a big use and impact on the overall population as most of the population have a good credit score which they use to get credit which sometimes they are not able to repay which causes a huge problem for them.
On the other hand debit card is a simple card that allows you to use the cash in your savings amount. You can’t increase or decrease the amount and you can only spend what you have deposited.
So, till now you may think having a debit card is a good thing as using a credit card only brings trouble but you may be wrong as most people think the opposite of this if you wonder why below is the answer in few points.
- If you use a credit card they increase your credit score which in turn helps you in getting a loan or more credit from the bank.
- Credit cards come with various schemes, cashback, free travel offers, and discounts that debit cards don’t provide. So, if you use your credit card wisely you always win in saving more money than a person using a debit card.
- In case of an emergency, you can use your credit card to pay which is not available in case of a debit card.
So, in conclusion, if you can maintain a good balance you should apply for a credit card whereas if you are facing a money problem you should not apply because paying back to the bank is the most important part if you don’t do that you will lose a lot of money.
Use our tool CardGenerator to generate test credit and debit cards.