Credit or debit card, which offers more advantages for the customer? Without a doubt, having a card available for purchases brings many benefits, but when it comes to closing accounts and keeping a balanced budget, which of the two pays off more?
Discover what we discovered and draw your conclusions about which model to adopt when shopping: Credit or debit card? Continue reading to find out more.
What this article covers:
How do credit and debit cards work?
Credit and debit cards have differences in terms of payment method, while with credit cards, the bank provides a limit and, as you purchase, these amounts form the invoice to be paid at the end of the month.
The debit card is different, to use it you need to have money in your bank account so that the amount can be debited at the time of purchase. In this case, no invoice is generated as payment is made instantly.
What is the difference between Credit and Debit?
The main difference between credit card and debit is the payment method, as with the credit card payment is made immediately with amounts available in your account, whereas with the credit card payment is made through an invoice due on the day you choose.
On the credit card, a limit is available for purchases, and there is also the possibility of paying your purchases in installments. The amount paid in installments is deducted from the total limit available, and therefore, before making installments, it is important to pay attention to the revolving interest and the number of installments.
Tips for using debit and credit cards
If you paint doubts about which model to use a credit or debit card, some tips can help you choose.
For amounts smaller than R$50.00, choose to use your debit card, as the amount is automatically debited from your account, thus preventing it from becoming negative.
For larger amounts, the tip is to bet on the credit card, as the amount is only paid on the maturity date chosen by you, keeping your account with a balance for when you need it.
Other tips involve paying the full amount of the bill to avoid getting into debt, and especially knowing that the amount available for purchasing the card is not your income amount. So spend only what your budget can cover in order to avoid debt.
The minimum payment is also not recommended, and if it is done, ideally, you will be able to cover the entire amount in the following month, given that these payments made frequently can already indicate signs of indebtedness, in addition to affecting your score, leaving you more low.
What are the advantages and disadvantages of the debit card?
The debit card does not allow installments and this is one of its main disadvantages in relation to the credit card and makes purchases much easier.
On the other hand, with a credit card, there is no generation of invoices, as the money immediately leaves your account for payment, with a balance and being an option to keep your finances under control until the end of the month.
Another advantage of the debit card is the ease of not carrying cash, in case of loss or theft, just request the blocking of the card.
The use of a debit card in your daily life prevents you from having unnecessary expenses on your credit card, being one more point to control your financial life.
What are the advantages and disadvantages of a credit card?
One of the main advantages of the credit card is the ease of installment purchases, which makes the customer more comfortable to pay for higher-value items.
However, it is necessary to pay attention to the interest rates of the revolving credit, in addition to having greater control of your monthly bill so as not to get into debt.
Another positive point of the credit card is precisely the ease of paying only on the due date, so getting financially organized to keep payments up to date is important.
Credit or debit: which is the best payment method?
The best payment method is the one that fits your budget, so choose the payment method according to your income. Always remember that on your credit card you will have amounts to pay on a certain due date and that the amount available on the card is not the amount of income you have.
The debit card does not have invoices and payment with it can only be made using amounts available in your account, being an alternative to better control your expenses and avoid indebtedness, but pay attention to the overdraft.
Maintaining your financial life is the most important thing, regardless of which card you are going to use. Therefore, make your choice according to your expenses and monthly income to stay out of debt.