Which card best suits your way of consumption?

Credit or debit card? That is the question we usually ask ourselves when choosing one type of card or another. And is that it is very easy to confuse both cards. The differences between them are notable, but the lack of financial information leads many to confusion and to use both cards for the same purposes.

It is important to know the differences between the two, so that you can decide which one best suits your wishes and needs.

Generally, it is recommended to use the debit cards to people who are more focused on consumption, while the credit cards are aimed at the most disciplined people in managing their finances.  

It is essential to know the ddifferences and similarities of one and the other to be able to use them correctly. Since you can get both debit cards and free credit cards in banking entities.

What makes each card different?

Debit

Debit cards are linked to our checking account. When we buy a product, either online or in a physical store, the charge is immediately made to our checking account. If we do not have a balance in our account, the card would give an error. The operation would be rejected by the establishment and the purchase could not be made.

This card it is not intended as a means of financing, but as a form of payment. Transfer the money from our checking account to the bank accounts of the stores where we buy.

They allow us to make transfers and withdraw the money we need at any ATM and bank offices. They are a means of payment that allow us to have the money we have saved in our bank account.

To make the usual purchases such as supermarkets, fashion, etc. ... debit cards are the best option, since we do not have to pay interest of any kind since all the capital is extracted from the savings deposited in our checking account.

To be able to get a debit card it is essential to have a checking account at the bank that provided us with the card.

Debit cards are very useful, as they help us keep track of our expenses and allow us to check the available balance on our card.

In order not to overdo it when buying, the customer can agree on a daily spending limit with the bank. In such a way that, although sufficient funds are available, the operation cannot be carried out if this limit is exceeded.

Debit card fees are cheaper than credit card fees. Depending on the bank, the amount may vary. Although it should be noted that some entities do not impose any type of commission on debit cards.

Credit card

Credit cards, apart from being a form of payment, also they are a means of financing And, perhaps, this is why they are more complex than debit cards.

When we are going to make a purchase, either in physical stores or in online stores, the process changes. This type of card, unlike debit cards, allow you to make purchases without having the necessary quantity in our checking account.

Usually payments are deferred for about a month. Once the estimated date has expired, the client will have to pay the amount of the debt. As a general rule, in most cases the account associated with the card funds are available and debt is collected directly.

In case of not having funds will apply an interest which can range from but, in the event that you do not have funds, credit card interest will be activated, which can range between 12 and 20%.

The commissions on credit cards are usually much higher than on debit cards.

Credit cards have an annual issuance and maintenance cost. And the withdrawal of cash at ATMs also involves a high cost of approximately 20%.

The point in favor of these cards is that, in a moment of urgency, Even if you don't have enough money, you can still make the purchase.

There are many differences between both types of card, now it is you who decides which one interests you the most.