When it comes to looks, you could compare the similarities between a credit card and debit card to that of identical twins but like these twins, these two also have their differences; ranging from the type of financial institutions that offers them to their capacities/abilities. Here are five basic differences between them. Read on to find out more…
Credit Card
- They are given by a credit card company or a bank and expenses carried out on it are paid by this company.
- Money gotten from it is from a borrowed from a financial institution and is paid back gradually.
- The maximum limit of withdrawing money is determined according to the credit rating of the holder. There is a limit to how much you can borrow, which is basically dependent on your credit score and ability to pay back.
- Bills are paid within 30 days of transaction or it may be surcharged.
- With this, there are likely chances of getting rewards, like cash, discounts, travel points, and many other perks unavailable to debit card holders.
See Also: HOW TO KEEP YOUR CREDIT CARD DETAILS SAFE
Debit Card
- Money withdrawn with it is money in your account.
- Purchases made with it is paid directly from your account.
- The maximum withdrawal limit must be equal to the funds available in the account
- Once the money in the account is exhausted, purchases can’t be made.
- Bill is deducted from your account.
O3 Cards brings all the advantages of owning a credit card without stress. To apply, simply visit www.o3cards.com.
O3 Cards are issued in three categories; Classic, Platinum and Prestige cards, with varying credit limits available.
