Many people find it difficult to choose between a credit or debit card when making a payment. It is a fact that the card is one of the most practical forms of payment there is. And this applies to both types, namely the credit or debit card.
Therefore, it is important to know how to use them and identify in which situation we should opt for a credit or debit card. Let’s understand what each of these cards is and how it works, check it out!
What this article covers:
What is the Debit Card?
A debit card is linked directly to your bank account, either checking or savings. When making a payment using your debit card, the purchase amount will be automatically deducted from your account.
Let’s say you went to a store, made a purchase of BRL 150 and the payment method used was a debit card. To be able to pay with the card, you must have at least R$150 in your account, otherwise the card will be declined. So it’s always good to check how much you have in your account before using a debit card.
What is the credit card?
The credit card is completely different from debit, because to use it you don’t need to have money in your bank account, as it works as a kind of loan. The credit card comes with a set limit, and it is not allowed to make purchases that exceed this amount.
For example, if we make a purchase of BRL 500, with the credit card we have the option to split the purchase in 12 installments or more. So on the date we choose, the card statement will arrive. Then just make the payment to release the limit again.
Which is the best option to choose: credit or debit card?
Credit or debit cards are two great ways to pay. But there will be situations where it will be more advantageous to opt for debit and others for credit. If you make a purchase with a very high value, for example, credit may be the best option, because with it you have the option to pay in installments. While with the debit card this amount would be discounted, and maybe leave your account zero.
But for simple purchases with a reasonable value, the best option is to use debit. With it, you avoid unnecessary debt, and leave your credit card limit free, to make purchases that have a higher value and need to be paid in installments.
How does the credit and debit card work?
When making a payment with your debit card, the amount is immediately withdrawn from your account. However, no type of fee is applied, and it is even possible to earn discounts in some situations, since payment is in cash.
With a credit card, you can pay in installments and pay for a purchase up to 1 month later. But some fees will apply and the product will have a higher value than if you paid in cash. In addition, interest is also applied in cases of delay or invoice installment🇧🇷
Now we know how they work and in which situations we should use a credit or debit card. So, just analyze the situation and see which payment method will bring you the most advantage.