Credit card and debit card are two concepts that many people handle indifferently, as if they meant the same thing. But, as we will explain below, these financial products, despite being similar, do not have exactly the same characteristics.
Therefore, it is interesting to know them in detail to be able to use these cards in a coherent way, which will mean savings and avoid the negative consequences of misuse.
The differences between debit and credit cards
Broadly speaking, the main distinction between these two financial instruments is that the first one operates with the available balance in a current account. The second, meanwhile, allows you to access funds that the bank lends you.
Consequently, debit cards are characterized by the limitation imposed by the balance that the holder may have accumulated. This does not mean, on the other hand, that credit cards can be used carelessly, you will have to take into account the credit limit associated with your card and, logically, the conditions for returning said credit to the bank (terms and perhaps interest ).
We must bear in mind that credit cards allow more flexibility when making payments
With debit cards, cash withdrawal charges as well as payments in shops are made at the time they are made, while with a credit card we can choose to pay at the end of the month all the operations carried out with our card during that period. month or defer one or more purchases in different installments.
Another issue to assess is that of charging fees, such as those that often have to be paid to withdraw money from ATMs. In this sense, and referring to a national environment, we must appreciate that the use of debit cards does not usually entail the imposition of these commissions, which are very common when using credit cards.
Credit card or debit card?
Analyzing the differences between the two, we opted for the credit card, since its use is not likely to end in denials due to lack of balance that affect debit cards and, in addition, it offers the possibility of deferring our payments, if we need it. Consequently, it offers a greater margin, but should be used when evaluating the spending limit.
In addition, there are cards with a ‘Mixed’ modality, which allows cash provisions to be made at the ATM in both modalities: both debit (direct charge to current account); as credit (by having the credit balance of the card).
Advantages of cards in the Account With Me Program
If you belong to the Cuenta Conmigo Program, in addition to having the advantages offered by the use of a debit or credit card, you can also take advantage of other card benefits, such as free Across Lender cards: credit, debit and virtual with Contactless and cash withdrawal without commissions at more than 7,700 ATMs nationwide.
If you have any questions regarding the cards, we will be happy to assist you in any of our offices or through our social networks Facebook and Twitter.