Cash is going down in history as a form of payment. The online sales services and the implementation of card payment in stores allow us today to dispense with the cumbersome process of going to the cashier to get money to face our payments.
In this context, it is common for mortals to have a card even without knowing if it is credit or debit. For practical purposes, both serve to pay but have important differences.
Credit cards, purchases without limits?
Credit cards are a method of payment but also a means of financing that allows us to continue spending money when our funds are depleted or about to become extinct. Its fundamental characteristic is that all payments made with it are charged to our checking account only once and only one day a month, so that we can continue shopping while we know that on the day of collection our account will have funds to face .
I spent it If a month you need to defer payments, your bank will allow you to do it in an exceptional way but it is convenient not to resort to this measure frequently since the interests are very high.
Negotiate your conditions very well with your bank and make sure of the interests that will be charged depending on what you spend and also if you are going to get cash at an ATM, as it is usually an operation with a significant cost to the customer.
Debit cards, the most common
Debit cards are the most frequently used and cause a direct charge to the checking account at the same time of purchase – or in the following days depending on the establishment where you are.
They have a fixed daily limit past which you will not be able to continue paying with it and if your account runs out of funds, it is normal for you not to continue using it. If you are exposed and continue shopping, the entity will charge an important commission on your red numbers.
They are the favorites of many customers because they allow you to control expenses in a more responsible and realistic way.
Credit and debit cards differ in the terms in which the money spent is withdrawn from our checking account. It is convenient to have a good planning of expenses to avoid scares.
Which one I choose?
Everything will depend on the type of consumer you are, your economic situation and the use you give to the card. For example, if you always have funds on the card and need to withdraw cash frequently, debit is the best option.
If you prefer to pay all your payments at once or travel frequently abroad, the credit one best suits your needs.
Be that as it may, make sure you know very well the conditions of your contract, the commissions, the maintenance fee and the ATMs in which you can use it if an emergency arises.