In the US, the average person has 3.84 credit cards. These cards are so easy to swipe for purchases, it’s no wonder why people have so many in their wallets!

But do note that we said credit cards and not debit cards.

What’s the difference between a debit vs credit card anyway? Keep reading to see!

What Is a Debit Card?

A debit card is a card you swipe to make purchases. When the transaction is complete, it’ll take existing money out of your bank account.

So you can’t charge what you don’t have. Otherwise, you’ll overdraft on your account, which means you’ll go under $0 for your balance. Usually, you’ll be charged a heft overdraft fee when this happens.

What Is a Credit Card?

A credit card is also a card you swipe for purchases. However, as the name implies, you buy things on credit.

What this means is that the money is loaned to you. At the end of the month, you’re then given the “bill” and you’ll have to pay a minimum off your balance.

If you don’t pay at least the minimum, it’s considered a missed payment. Your interest rate can go up and you’ll be charged a late fee.

Debit vs Credit Card: Similarities


Both a debit and credit card are cards you can use for payments without needing cash. Also, providers often offer rewards systems to encourage spending.

However, this is where the similarities end.

Debit vs Credit Card: Differences

There are interest rates attached to credit cards, while there aren’t with debit cards. But on the plus side, you can build credit when swiping with a credit card, which doesn’t happen with debit cards.

It’s much easier to fall into huge debt with credit cards. In many cases, people are spending money they don’t have and/or can’t earn. But with debit cards, your bank balance is what you’re working with.

If you need a business card for work, corporate cards with Bento are a good choice since they have spending limits, as well as other cool features.

Consider Using Both

Consider Using Both

So long as you’re financially responsible, having both types of cards can be a good thing.

A good plan to follow is to only make purchases on credit cards that you know you can pay off. That way, you can enjoy all the benefits without incurring huge debt.

You can also keep a credit card or two for emergencies. Should a large expense come up (such as hospital bills, house repairs, etc.), you can pay for quick action, even if you don’t have the amount in your bank account. You can then slowly pay it off with each billing cycle.

Use the Right Cards

Now you know the difference between debit vs credit card. No matter which you choose, you need to be responsible with spending. Otherwise, you might end up in a cycle of debt that’s tough to get out of.

But if you’re smart about it, you can use both to your advantage and build credit while getting some great deals!

Use the Right Cards

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