Spot the dissimilarities between credit and debit cards


Are you finding it difficult to choose between a credit card and a debit card? Both will serve different purposes. Find out the reason behind getting a card.

You actually take out a form of sdebt when you opt for a credit card. While with a debit card, you will have to rely on the funds you keep. You cannot exceed the budget for spending with this card.

With a credit card, you can think of getting something out of budget. Besides, you have the opportunity to pay later. But it will attract interest fees. So, in the end, you will have to pay more for what you have actually spent.

You need to carefully handle credit cards as you do while borrowing quick loans in Ireland online. Besides, in both cases, you have to ensure that you can afford repayments. Defaulting payment will cost you heavily.

So, you must first point out the dissimilarities between credit and debit cards before making the final selection. It is also true that both have some similarities. But there are some characteristic differences that you must know.

Take a tour of this blog. It will help you form a clear idea of which way to choose.

Comparison between credit and debit cards

The primary function of the credit card is to facilitate you to borrow money at any time.

In this case, you will fetch money from the card-issuing company. You have to commit to paying back money with due interest. Besides, your transactions should align with the company rules and regulations.

On the other hand, a debit card follows a different payment method. It enables you to use money that will come from your bank account. It means you will actually spend the money you own. It is not a debt.

Features of credit card

  • It lets you take out money from the card provider
  • It helps you to earn rewards, bonuses and discounts once you start using it
  • It paves the way for credit development
  • It attracts interest and other fees
  • It converts into debt if you depend on it extensively
  • It is safe to use as it provides with high-end protection formula

Features of debit card

  • It lets you get the money from your bank account
  • It prevents the formation of debt
  • It doesn’t invite any fees
  • It will not need you to pay interest for using your money
  • It does no help in building the credit

Your transactions with a credit card get recorded in your credit report. So, if you are punctual in making payments and your credit utilization ratio is low, it will enhance your credit scores. On the flip side, late payments and defaults will have a bad impact on your credit scores.

With a debit card, you don’t have to worry about feeling any impact on your credit scores. Besides, you can use the money whenever the need arises without worrying about repaying.

The main comparison can be represented here as follows:

The amount you can spend

A debit card allows you to spend money based on the amount you save in your bank account. You have to stick to the limit as saved by you in your bank account. If you overspend, you will lose more money from your account.

A credit card lets you spend money based on the credit card limit as set by you. But you have to agree to pay back the money with interest. The longer you will take to repay, the more the interest rate will compound.

The Interest you have to bear

With a debit card, you will access money that is available in your bank account. So, no interest will be imposed on you when you withdraw or use the money.

A credit card lets you use the balance available to make any purchase. However, the only dissimilarity is that you must return the amount used in addition to interest. With a credit card, you can opt for the minimum payment.


Both cards offer you a decent level of protection against fraud and scams. In case any of the cards get stolen or misplaced, you can ask your bank or credit card Company to cancel or block the car at once.

Some credit cards even facilitate you to get a refund for the amount you spent on purchasing an item you received.

The Cheapest option for the withdrawal

When you withdraw money using a debit card, it will impose the least charges on you. On the other side, withdrawing money with a credit card is pricey. Here, interest fees will be more than what you pay as interest for debit card withdrawal.

Borrow money

The amount available on your credit card is the amount you have borrowed. You have to pay some amount of interest.

But when you borrow money against your debit card in the form of an overdraft, the interest you will meet is more than the credit card interest. So, borrowing is cheaper when it comes to credit cards.

Interest-free purchase date

With a credit card, you get the opportunity to purchase without paying any interest for a specific duration. But this facility is not available when you are opting for a debit card.

You will have to confirm the interest-free period with your credit card company before you make the purchase.

So, now you get a complete overview of both cards. Hopefully, it is beneficial for you.

The bottom line

Put the focus on your necessity, and you will get an answer. There is nothing wrong or right if you choose either a credit or debit card. The reasons for having these cards are about individual choices.

It is almost like getting short-term loans in Ireland for purposes that are exclusive to you. But remember that paying back on time is your responsibility. You will have to face the worst consequences, like accrued interest rate, if payment gets delayed. You can research the features that help you opt for the right one. Besides, don’t overlook your spending needs. It is the primary reason to get a card. Make use of the insights shared in this blog.