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    What's The Difference Between Credit & Debit Cards

    Debit vs. credit: What are the advantages of having one or the other? Both? Learn more about the difference between debit and credit cards and which is best for you.

    What's The Difference Between Credit & Debit Cards

    Debit and credit cards are both used to pay for goods or services without paying in cash or writing a check. The difference between the two is where the money to pay for the purchase comes from.

    What's the difference?

    When you use a debit card, the funds for the amount of your purchase are taken from your checking account in almost real time. When you use a credit card, the amount will be charged to your line of credit, meaning you will pay the bill at a later date, which also gives you more time to pay.

    It can often be complicated to decide when it is best to use each card. For everyday purchases, consider using your debit card because you will see the money taken out of your checking account right away. For bigger items, such as a rental car or hotel room, you could use your credit card so that you can save up money by the time you have to pay.

    Advantages of a debit card

    In addition to the convenience if you don't have cash readily available, debit cards have several advantages for users.

    Avoid increasing your debt. Using a debit card instead of a credit card is a good way to decrease your chances of getting into debt. This payment method should keep you within your budget and from spending all of the money in your checking account. If you ever do spend more than your checking account allows, you may be charged an Overdraft or Return Fee from your bank.Debit cards give you easy access to your cash. You can use your debit card to withdraw cash from ATM machines. Some retail stores will also allow you to get “cash back,” charging more than your initial transaction to your checking account and giving the cash to you with your receipt.Pay now to avoid a bill later. Since the money from a purchase you make with your debit card is taken directly out of your checking account, you don't have to worry about a bill coming your way at the end of the month. This also means that you don't have to worry about interest accumulating on that bill. Using a debit card is a great way to control your spending, just be careful to avoid Overdraft and Return Fees!

    Advantages of a credit card

    There are several benefits of having and using a credit card.

    Credit cards give you extra time to pay for purchases. At the end of your monthly credit card cycle, you will receive a bill stating how much you owe for purchases made in the last 30 days. Depending on when you made the purchase, you have up to a few weeks to pay your credit card bill. Technically, you are only required to pay the minimum fee each month but this could lead to future debt.

    For example, if you spend $1,000 in a month but only pay your monthly minimum payment of $15 and you spend again next month, you are likely to fall into a debt trap. Each month that you don't pay off the entire bill, there will be a certain amount charged for interest by the credit card company. A helpful tip is to pay off as much as you can each month to earn better credit and avoid building up debt.

    Credit card use builds your credit history. Each time you purchase something with your credit card and then pay it off on time, your credit history will build up. Building good credit is important when you are taking out a loan, buying a car or house, etc. Paying off your credit card bill each month will show that you are capable of paying off debt and can help increase your credit score.Convenient for emergencies. Having a credit card is very useful and convenient when there is an emergency. If you suddenly need to pay for a repair in your house, you can put the charge on your credit card. In this case, you probably did not plan for this expense, so your credit card company will extend you credit until you pay the bill at the end of the month. Again, this gives you a little extra time to pay for something you weren’t expecting to pay.

    Benefits of having a debit and a credit card

    Many people have a debit card and a credit card. Since each card has a different use, they utilize the unique advantages and differences between debit and credit cards. Instead of choosing between one or the other, consider getting both!

    Interested in getting a debit card?

    Apply online for a checking account and receive a debit card with your new account.

    If you already have a checking account, you can request a debit card by visiting your local branch or by calling us at (800) 480-2265.

    Learn More

    Interested in getting a credit card?

    Apply for the Huntington Voice Credit Card® and the choice is yours: get 3X rewards in the category of your choice1 or get a 2% lower purchase APR than our reward card.

    Learn More

    learn more about debit cards

    Find debit card information

    Activate a debit card

    Learn how to use a debit card

    Report a lost or stolen debit card

    Choose a debit card design

    1Earn 3% cash back on the first $2,000 that you spend each quarter in one of 10 pre-selected categories. Earn 1% cash back even after you reach the quarterly limit. Plus earn an unlimited 1% cash back on all other purchases. You may change the category within the first 30 days of opening a new account and again prior to the start of each quarter for the next quarter. Visit huntington.com for full rewards terms and conditions.

    Source : www.huntington.com

    Difference Between Credit Card & Debit Card

    Difference between Debit & Credit Card - Know All the Comparison between Debit and Credit Cards explained and Compared in-detail. Know which is best.

    Difference Between Credit Card and Debit Card

    The differences between a credit card and a debit card are more than you can think of. Even though both cards often look the same, have many similar functions.

    The major difference is that with a credit card, the bank lends you money to use which you can use and pay them back with interest on a monthly basis. Whereas, with the debit card, you are spending the money which you already have.

    Credit Card vs Debit Card

    Debit Cards Vs. Credit Cards: A Comparison Between the Two

    Let’s take a closer look at the differences between credit cards and debit cards.

    Parameters Debit Card Credit CardDefinition Deducts money directly from your saving’s bank account or your current account. Allows you to borrow funds to pay for goods and services.Source of funds Your savings bank account or current account. Credit extended to you by your card issuer. It gives you access to money you otherwise do not have (like a very short-term loan).Spending advantage You can only spend how much you have. Can spend more than what you have.Who pays for the purchase You pay for your purchase. The credit card company pays the vendor for your purchase. You pay the credit card company.Bill There is no bill or statement You get a bill or statement each month with details of the transactions you have made.Payment There is no payment that needs to be made since you are using your own money. A bill needs to be paid each month since it is being borrowed.Fees and charges Annual fees and PIN regeneration fees are applicable. Credit cards have multiple fees applicable. These include joining fees, annual fees, late payment fees, and bounced cheque fees among others.Interest There is no interest that is charged. Interest is charged on the outstanding amount if it hasn’t been paid by the due date.Limit to funds that can be accessed You can access any amount up to what is currently available in your savings bank or current account. You can use the card only up to the pre-set credit limit on your card.Rewards Typically, the rewards you get are minimal Get to enjoy cashback, air miles, and reward points which can be redeemed.Privileges Doesn’t come with many privileges. Come with numerous dining, retail, entertainment, and travel privileges (depending on the type of card you have).Lost card liability Protection from theft or loss of the card is minimal. Most cards offer 100% lost liability protection. So, you are not liable for any unauthorised transactions made.

    Pros and Cons of Debit Cards and Credit Cards

    Now that you know the fundamental ways in which debit cards differ from credit cards, let’s look at their pros and cons.

    Debit Cards


    There is no debt involved since you are using your own money.

    It is cheaper to use since there are no interest charges involved.

    Serves as an ATM card as well, so you can use it to withdraw money from an ATM.

    Approval for a debit card is easier and faster.

    Doesn’t help build a credit history.


    You don’t have the ability to leave disposable cash in your account since money is directly debited.

    It can complicate balancing your passbook at the end of the month if you don’t keep track of your spending.

    You may be charged a fee if you withdraw money from a different bank ATM.

    There is very little protection when it comes to debit card fraud.

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    Credit Cards


    Credit cards are extremely convenient and prevent you from having to carry cash with you.

    Credit cards help you build your credit score.

    The rewards you earn are much higher than those on debit cards.

    They provide you with flexibility when it comes to spending since they come with relatively high credit limits.


    If you don’t pay your bills on time or in full, you are charged a high rate of interest.

    Credit cards have multiple fees.

    Missing a payment (even due to genuine reasons) could end up adversely affecting your credit score. You then must work much harder to build it.

    While there is a credit limit, you could always be tempted to spend more than what you have. This leads to debt.

    So, Which One is Better?

    As you can see, credit cards and debit cards come with their own advantages and disadvantages.

    However, here are some of the instances where you can choose to use a credit card, or a debit based on their pros and cons.

    If you have spending issues: Debit card

    It goes without saying that if you can’t control how much you spend, to use a debit card. Since the money is going from your savings or current account, you are less likely to overspend and get into credit card debt.

    Withdraw cash: Debit card

    When you withdraw money using your debit card, you are gaining access to your own money, so there is no expense involved. However, if you use your credit card to withdraw money, you are withdrawing the money you don’t have. The bank will consider this as a type of loan which you will have to pay back with a high rate of interest.

    Source : www.bankbazaar.com

    Credit Cards vs. Debit Cards: Key Differences

    Credit cards and debit cards may look identical, but they are quite different. Be strategic about which type of card you use.

    Credit Cards vs. Debit Cards: An Overview

    Credit cards and debit cards typically look almost identical, with 16-digit card numbers, expiration dates, magnetic strips, and EMV chips.1 Both can make it easy and convenient to make purchases in stores or online, with one key difference. Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Credit cards allow you to borrow money from the card issuer up to a certain limit to purchase items or withdraw cash.

    You probably have at least one credit card and one debit card in your wallet. The convenience and protection that they offer are hard to beat, but they have important differences that could substantially affect your pocketbook. Here’s how to decide which one to use to meet your spending needs.


    Credit cards give you access to a line of credit issued by a bank, while debit cards deduct money directly from your bank account.

    Credit cards offer better consumer protections against fraud compared with debit cards linked to a bank account.

    Newer debit cards offer more credit card-like protection, while many credit cards no longer charge annual fees.

    When comparing credit cards with debit cards linked to a bank account, it’s important to consider the fees and benefits.

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    Investopedia / Sabrina Jiang

    What Is a Credit Card?

    A credit card is a card issued by a financial institution, typically a bank, and it enables the cardholder to borrow funds from that institution. Cardholders agree to pay the money back with interest, according to the institution’s terms. Credit cards are issued in the following variety of categories:1

    Standard cards simply extend a line of credit to their users for making purchases, balance transfers, and/or cash advances, and they often have no annual fee.Premium cards offer perks such as concierge services, airport lounge access, special event access, and more, but they usually have higher annual fees.Rewards cards offer cash back, travel points, or other benefits to customers based on how they spend.Balance transfer cards have low introductory interest rates and fees on balance transfers from another credit card.Secured credit cards require an initial cash deposit that is held by the issuer as collateral.Charge cards have no preset spending limit but often don’t allow unpaid balances to carry over from month to month.

    Credit card users can reap cash, discounts, travel points, and many other perks unavailable to debit cardholders by using rewards cards. Rewards can be applied on a flat-rate basis or at tiered rates. For example, you might have a card that offers unlimited two miles per dollar on purchases and another that offers three miles per dollar for travel spending, two miles per dollar for dining, and one mile per dollar for everything else. You could then use miles earned to book future travel arrangements.

    When choosing rewards cards, pay attention to whether rewards can expire and what options you have for redeeming them.

    Pros of Using Credit Cards

    Credit cards can offer certain advantages over debit cards, though they can also have some downsides. Here’s a closer look at the pros and cons of spending with credit cards.

    Build Credit History

    Credit card use is reflected on your credit report. That includes positive history, such as on-time payments and low credit utilization ratios, as well as negative items such as late payments or delinquencies. Your credit report information is then used to calculate your credit scores. Responsible spenders can raise their scores with a history of expenditures and timely payments and by keeping their card balances low relative to their card limits.1

    Many credit card companies offer free credit score monitoring and tracking as a card perk, so you can keep an eye on your progress when building credit.

    Warranty and Purchase Protections

    Some credit cards also may provide additional warranties or insurance on purchased items that go beyond those that the retailer or brand is offering. For example, if an item bought with a credit card becomes defective after the manufacturer’s warranty has expired, it is worth checking with the credit card company to see if it will provide coverage. Or you may have purchase and price protection built in to help you either replace items that are stolen or lost, or refund price differences when the item that you purchased is sold elsewhere for less.2

    Fraud Protection

    In most cases, credit cards offer much greater fraud protection than debit cards. As long as the customer reports the loss or theft in a timely manner, their maximum liability for purchases made after the card disappeared is $50. The Electronic Fund Transfer Act gives debit card customers the same protection from loss or theft—but only if the customer reports it within 48 hours of discovery. After 48 hours, the card user’s liability rises to $500; after 60 days, there is no limit.3

    Other Credit Card Advantages

    The Fair Credit Billing Act allows credit card users to dispute unauthorized purchases or purchases of goods that are damaged or lost during shipping.4 If the item was bought with a debit card, then the charge cannot be reversed unless the merchant is willing to do so. What’s more, debit card theft victims do not get their refund until an investigation has been completed.5

    Source : www.investopedia.com

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