Credit Cards Vs Debit Cards Essay
In reality, many people like to assume things. For instance, people in the past liked to assume the world was flat and not round. So just like the past many people today assume many things. Today many people assume debit cards and credit cards have the same benefits. Although debit cards and credit cards are used for the same purpose, scanned the same way, have a similar card size, and features such as the pin number, each has their differences.
Credit cards are basically a loan for the amount you purchased. You would typically pay back the credit card company when they send you a bill. However, if you don’t pay the amount stated on the bill you will be charged a fee or interest rate, but debit cards are different. Debit cards are connected to your bank account. So when you make a purchase, the same amount of money comes out of your bank account.
Furthermore, debit cards and credit cards have card protection but one has more coverage than the other. A debit card has some protection, for instance when you make a purchase with your debit card, it provides some protection during an error. The protection gives you liability depending on your situation. On the other hand, credit cards are protected by an act called, The Fair Credit Billing Act. The act states you have no …show more content…
Debit cards allow you to carry your whole bank account than carry a card that gives you easy access to loans. With a debit card you are able to make a full purchase without worrying about payments or possible fees and interest rates. Not only are you less stressed out about bills and their fees, but you don’t have to carry a large sum of cash in your pocket. However, credit cards are great for when you want to make emergency purchases. For example, your car broke down on the way to work and you need it towed and fixed, but you don’t have the money for it. With a credit card you are able to make the payments when you have
Credit cards are basically a loan for the amount you purchased. You would typically pay back the credit card company when they send you a bill. However, if you don’t pay the amount stated on the bill you will be charged a fee or interest rate, but debit cards are different. Debit cards are connected to your bank account. So when you make a purchase, the same amount of money comes out of your bank account.
Furthermore, debit cards and credit cards have card protection but one has more coverage than the other. A debit card has some protection, for instance when you make a purchase with your debit card, it provides some protection during an error. The protection gives you liability depending on your situation. On the other hand, credit cards are protected by an act called, The Fair Credit Billing Act. The act states you have no …show more content…
Debit cards allow you to carry your whole bank account than carry a card that gives you easy access to loans. With a debit card you are able to make a full purchase without worrying about payments or possible fees and interest rates. Not only are you less stressed out about bills and their fees, but you don’t have to carry a large sum of cash in your pocket. However, credit cards are great for when you want to make emergency purchases. For example, your car broke down on the way to work and you need it towed and fixed, but you don’t have the money for it. With a credit card you are able to make the payments when you have