Debit vs. Credit

Debit and credit, what's the difference? They are both cards in your wallet, but they serve different purposes. Read on to learn more!

 

Debit Cards

• Debit cards are directly linked to your checking account, which means spending is limited to what’s available in your account.
• Debit cards provide a convenient and easy way to withdraw cash from an ATM/ITM.
• Spending doesn’t affect your credit score.
• If you overspend, you could be on the hook for overdraft fees.

 

Credit Cards

• Credit cards are essentially a loan that will need to be paid back. Be prepared to make regular monthly payments to avoid overspending.
• With a credit card, you have the option to make purchases now and pay for it later.
• Great for emergencies of big purchase, like vehicle maintenance or school expenses, as well as daily purchases.
• Can help you build your credit score, which can make it easier to secure a loan later in life.