by Maya Momcilovic
Credit cards and debit cards are not the only way to spend money however, it is one of the easiest ways to make in-person and online payments. The difficult part about credit and debit cards is deciding which one is best for you. Both cards have a 16-digit number, pin, and expiration date but outside of the visual aspects, credit and debit cards are much different and are suitable for different people.
The first main difference between credit and debit cards is credit cards offer more protection than debit cards do. According to Investopidia.com credit cards have a limit to how much is spent after the card reaches a certain amount, “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.” Credit cards are safer for users as they offer protection for a longer amount of time than debit cards. A credit card may be better for you if you are basing it off of protection because you can catch theft easily.
Along with protection, credit cards differ from debit cards as credit cards can help you boost a credit score with fees whereas debit cards don’t have any fees but there is also no credit score. According to AARP.org debit cards don’t charge fees but credit card companies can give you points from airlines, “While many credit cards charge annual fees, debit cards usually don’t. And, of course, the credit card annual fees are charged automatically to your card, making them far less noticeable, and so you just keep paying, year after year.” Credit cards can give cashback, airline points, and rewards at stores which can be great for the future whereas debit cards don’t need the interest to be paid and are great for limited purchases.
Now you may be wondering, which one is right for me? Both credit cards and are different in their ways and have perks of their own. Debit cards would be better for teenagers as it has a limit on the amount of money being spent. Once you are past 18 years old, a credit card can be helpful as you can get points through different companies to spend money. Getting a credit card early is important as it can help boost your credit score and help you save money in the future. In conclusion, credit cards are different from debit cards even though they look the same. Both cards can help you and there isn’t a right or wrong answer. What kind of card do you have and which one are you planning on getting for the future?
Works Cited
CardRatings.com. “How Credit Cards Work.” Www.cardratings.com, www.cardratings.com/how-credit-cards-work.
Cussen, Mark P. “What's the Difference Between Credit Cards and Debit Cards?” Investopedia, Investopedia, 28 Aug. 2020, www.investopedia.com/articles/personal-finance/050214/credit-vs-debit-cards-which-better.asp.
“Discover Debit Cards vs. Credits Cards.” Discover, 19 Feb. 2020, www.discover.com/credit-cards/resources/the-difference-between-credit-and-debit-cards/.
Roth, Allan. “Should You Use a Credit Card or Debit Card.” AARP, 29 Sept. 2017, www.aarp.org/money/credit-loans-debt/info-2017/which-is-better-debit-or-credit-card-fd.html.
Personally, I have a debit card currently and it is so much more convenient and safer compared to holding onto cash. I think it would be really beneficial if you put some of the benefits of having a debit card as well! I agree with your statement in the conclusion - it is important to get a credit card early so that you start building a credit score ASAP.
ReplyDeleteI agree with you that debit cards are the best choose for teens. I personally have a debit card and prefer it over a credit card because I trust myself with it more. If I had a credit card I might be tempted to spend the money were as a debit card I earned the money and am more conscious of my spending habits.
ReplyDeleteI really like how you added your personal views and opinions to the actual facts and information that you included. Right now, I have a debit card and I truthfully didn't really know the differences and the benefits to having both a debit and credit card. After reading this though, I realize that I should get a credit card sooner than later, as it will benefit me more in the long run as my credit continues to build.
ReplyDeleteThough your article was very informative and provided me with a lot of knowledge. Now I understand what both cards do and how each of them are good in their both ways. I love that you talked about which one is better for you at different times because that made me think. Right now in my life I feel it is unnecessary to have a credit card, but in the future when I am an adult it seems much more beneficial to use a credit card because of the countless benefits, but one that caught my attention was the protection from theft. I think it was great to discuss when to have a credit card and debit card because it is highly relevant into our lives and into the future. Good Job!
ReplyDeleteI have always wanted to know on what card is better to be having when a teenager.This blog made me understand on why the debit card is better to use, as you get a limit amount of money to be spent as said on the blog. Debit cards are something that I would look up to this year, as when I turn 18 I may change my mind on going to credit because of the points you can get on it.
ReplyDeletePersonally at the moment I've only got a debit card, but since I'm eighteen it would be a wise choice to look into a credit card especially because you can start building up your credit score. One thing that I'd suggest to add is what happens if you obtain a credit card but don't use it? Does that mean that you have to give up that credit card from that specific business? Can you eventually build your credit score up enough to be able to have just more than one credit card or is it more responsible to just stick with one? Overall, in my opinion it's important that the younger audience graps the concept of what a credit card and debit card is. Especially since you don't want to end up one day in some debt that you won't be able to pay off on your own.
ReplyDeleteVery informative piece about the differences between credit and debit cards. Another difference is that a debit card needs a pin to be entered to use the card, whereas a credit card can just swipe and sign. This could lead to a debit card being a little safer because a pin is much harder to guess than a signature. Along with a debit card needing a pin, a debit card can not have its balance go below 0. The card will simply be declined and more money will need to be paid. With a credit card, the total just adds up and you have to pay it all off at the end of the month. For these reasons, I like my debit card because I can keep it safe by using a pin and I pay off the money right away since it comes out of my accounts right away.
ReplyDeleteRight now I only used a debit card and haven’t thought about getting a credit card because I haven’t really needed it. But based on the points you make it seems important to get a credit card in order to handle unexpected expenses (Investopedia) and earning rewards, hence saving money. It seems unlikely that if a person’s debit card were to get stolen that they wouldn’t report it within 60 days, so I don’t think the protection of a credit card makes it more appealing.
ReplyDeleteRight now, I use my debit card for everything, but when I turn 18, my parents are going to cosign on a credit card for me so I can start building credit and use it for gas and in other situations where it might not be the safest to use a debit card. We are looking into one with cashback because a lot of the banks have the option to use the cashback towards your credit card bills so you aren't paying it completely out of pocket.
ReplyDeletePersonally, I only have a debit card and I use it for practically everything. I won't need a credit card for a while because I am younger for my grade. If I were to use a credit card I wouldn't use it that much because I wouldn't want to risk using it improperly and cause issues. I think the information and pictures Maya used helped me understand the purpose of that each card and it helped me understand the differences much more in depth.
ReplyDeleteI currently use a debit card and I do want to get a credit card once I have a stable job but i'm scared that I won't be able to pay off the bill because knowing that I can just "wait" to pay for things is what is really gonna bite me in the butt because right now if I buy something I can see it come right out of my account but it's not the same with a credit card.
ReplyDeleteGreat Job explaining that differences between the two cards. I was always curious how the two cards work and now knowing this information I will be able to decide which one is the one for me. I complety agree with getting a credit card immediately as soon as of legal age because it helps to build credit and credit is very important in this country.
ReplyDeletePersonally, I have a debit card and I use it for basically everything. When I'm older, I will definitely want to get a credit card so that I am able to build up my credit score and earn rewards which will help me save money in the end. Knowing this, I thought your article was very insightful because knowing that I want a credit card when I'm older, your article helped me know what to be aware of when I get one, like annual/monthly fees. In the end, I thought your comparison between debit and credit cards was wonderful and I feel that I am now less ignorant on the subject after reading your blog. Great job!
ReplyDeleteCurrently I use a credit card that is under my parent's name so that they can receive the rewards back and I can have a more manageable way to pay for things - compared to carrying around wads of cash. Everyone in my family uses credit cards because they can earn you money back if you use them frequently and pay the money back routinely. For example, both of my parents have credit cards registered at Costco. They have their accounts set up so that money from their bank account is transferred each month to pay off the credit debt and then at the end of the year they receive a few hundred dollars back in Costco rewards for being good credit clients. This is a great incentive for my family because there are a lot of us and we go through lots of food haha. I think that this article was written very well because it was easy to understand and explained in depth enough the differences so that any random teenager could make an informed decision as to which card they should get. Great work Maya!
ReplyDeleteWhen choosing between these 2 options, your article is a reliable source to see the advantages and disadvantages in both credit and debit. In your blog you explained how credit cards differ from debit cards as credit cards can help you boost a credit score with fees where as debit cards don’t have any fees but there is also no credit score. I think it is also best to start out with a debit card because their is limits and you can only spend what you have. After proving responsibility I think it would be a great time to jump start your credit score and maintain at a good status.
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