Things You Should Know About Debit and Credit Cards

posted on Tuesday, September 20, 2022 in Financial Tips

Cashless transactions seem to be the payment method preferred by most consumers nowadays. A simple swipe of your card on the counter makes purchases easier, whether you’re out shopping, running groceries, or paying your bills. However, some of you might compare a debit card vs a credit card. But in fact, no card option can be considered better than the other. Each of them has specific uses and benefits. Read on to learn more about their differences.

Debit Card

This type of payment card deducts funds from your account without the use of physical cash. Your financial institution provides this as a substitute for your money to have easier transactions. To add, there’s no interest charge for debit cardholders.

The thing about debit cards is their convenience. Aside from the stated usage of the debit card, you can also check your balance and withdraw cash from the nearest ATM if needed. It’s convenient for emergency cash withdrawals.

Credit Card

Cardholders that have been granted permission to borrow money from a financial institution can use credit cards. They are commonly known as a "buy now and pay later" policy. They have a specific spending limit and will charge you for the amount you spend using your available credit. The good thing is that you can pay at a later date; you have extra time to save money for the payment. Thus, even if you don’t have the cash yet, you can still purchase your needs or pay bills using a credit card.

Credit cards are most beneficial to consumers that need emergency financial support. For instance, your HVAC system suddenly malfunctioned and you need to have it repaired immediately. Instead of compromising your household’s expenditure, you can simply pay the technician for emergency service with your credit card.

Contact Community 1st Credit Union’s Financial Professionals

The topic of “debit card vs credit card” shouldn’t be an issue in the first place, as they have specific usage and benefits. What’s more important is your purpose for using them; that’s why it would be best to consult a financial expert.

If you want a convenient credit card service, contact Community 1st Credit Union. We have professionals for financial services that can assist you with opening credit and debit card accounts. Don’t hesitate and let our C1st representatives help you process your cards.