Debit card vs credit card: what is the difference
The basic difference is simple: a debit card spends your own money, while a credit card uses the bank's money and must be paid back on time.
When a debit card is better
- For everyday spending without debt risk.
- For tighter budgeting with a fixed income.
When a credit card is better
- For building credit history.
- For cashback, rewards, and purchase protection.
Common beginner mistakes
- Using the full credit limit.
- Paying after the due date.
- Opening cards only for bonuses without a plan.