Are debit cards a type of credit card?

If you are a person who has got a credit card for the first time you have to know how to use it. Although a credit card is similar looking when compared with a debit card, they are not the same with features.

You are likely to get into some sort of trouble if you do not know the difference. So, we throw a little light into the major difference between a credit and debit card. It would further help you understand how to use credit cards going forward.

Firstly, you have to understand is the fact that debit cards are not a type of credit card. They are different in more ways than one. Although its uses are practically for the same purpose they still differ in many ways.

Debit Card Features

• Credit history is by no way affected by the amount of money you spend on your card
• Money from your account is debited directly against any purchases or payments made
• No interest on purchases made with a debit card
• Cash withdrawal generally does not come with a fee

Credit Card Features

• You can only pay or make purchases to the determined amount according to the issuer or provider
• If your credit card bills are not paid within 30 days you would be liable to pay interest towards it
• Withdrawal of cash might come with a fee that you might commonly be not aware of

Security Protection

When it comes to the safety aspect of your debit or credit card, they are usually the same. You may not be liable for credit card misuse if you have reported it in time. There are also options for including an insurance cover for your credit card.

In most cases the sooner you call the fraud hotline you are lesser liable for the fraudulent transactions. If you are not aware of a stolen card there are chances that you might lose a major chunk of your money.

Important Things to Note

Always remember to use your credit or debit card wisely with minimal risks. You must ensure that you are aware of the instructions, conditions, and terms of the card you use. This only enhances your protection and safe use of the cards you possess.

People who generally are not used to reading terms and conditions are prone to more trouble. This is because they do not know how to use their credit or debit card. It would lead to not just unnecessary fees but may also invite unexpected charges.

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