{"id":3299,"date":"2022-06-24T09:22:20","date_gmt":"2022-06-24T09:22:20","guid":{"rendered":"http:\/\/3.6.240.223\/lxmi-wp\/?p=3299"},"modified":"2024-08-07T18:42:42","modified_gmt":"2024-08-07T18:42:42","slug":"debit-or-credit-card-choice","status":"publish","type":"post","link":"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/","title":{"rendered":"The Best Card for You: Debit or Credit?"},"content":{"rendered":"\n<p>Navigate the financial landscape with confidence as we unravel the age-old debate: &#8220;<strong>The Right Card for You: Debit or Credit?<\/strong>&#8221; In this insightful blog, we delve into the nuances of both options, helping you make informed decisions tailored to your financial lifestyle. Whether you&#8217;re a staunch advocate for debit or find credit more aligned with your goals, join us in exploring the pros and cons, ensuring you wield the plastic that suits you best.<\/p>\n\n\n\n<p><em>Have you ever been confused about the&nbsp;difference between a credit and a debit card? It\u2019s easy to see why.&nbsp;Debit cards and credit cards are accepted at many of the same places, they both offer convenience, and eliminate the need to carry cash.&nbsp;&nbsp;Credit cards&nbsp;and&nbsp;debit cards&nbsp;typically even look almost identical, with 16-digit card numbers, expiration dates, and personal identification number (PIN) codes.&nbsp;<\/em><\/p>\n\n\n\n<p><em>But that is where the similarity ends.&nbsp;<\/em><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#The_basic_difference_between_Credit_Card_and_Debit_Card\" >The basic difference between Credit Card and Debit Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#What_is_a_Debit_Card\" >What is a Debit Card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#What_is_a_Credit_Card\" >What is a Credit Card?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#Some_facts_regarding_credit_cards_are\" >Some facts regarding credit cards are:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#What_If_You_Pick_%E2%80%9CCredit%E2%80%9D_When_You_Swipe_Your_Debit_Card\" >What If You Pick \u201cCredit\u201d When You Swipe Your Debit Card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#Choosing_the_Best_Card_for_the_Situation\" >Choosing the Best Card for the Situation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#FAQs_Around_Debit_or_Credit_Card\" >FAQs Around Debit or Credit Card<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#What_is_a_Debit_and_a_Credit\" >What is a Debit and a Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/#Debit_or_Credit_Are_They_the_Same\" >Debit or Credit: Are They the Same?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_basic_difference_between_Credit_Card_and_Debit_Card\"><\/span><strong>The basic difference between Credit Card and Debit Card<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The fundamental difference between&nbsp;a debit card&nbsp;and a credit card account is where the cards pull the money.&nbsp;<\/p>\n\n\n\n<p>Debit Cards are directly linked to your bank account (such as a salary or savings account). When you use your Debit Card, the amount is deducted directly from your bank account immediately.<\/p>\n\n\n\n<p>On the other hand, when you use your Credit Card, your bank extends you a loan for a certain period. When you swipe your credit card to make a purchase, the bank pays the amount on your behalf, without you having to pay money from your wallet or account at that very moment. But the same amount is charged to your credit card bill generated the next month and that is when you have to pay that amount from your own pocket.&nbsp;You may also have to pay a certain amount as interest as well, based on your purchase.<\/p>\n\n\n\n<p>You probably have at least one credit card and one debit card in your wallet. The convenience and protection they offer are hard to beat, but&nbsp;they have important differences&nbsp;that could substantially affect your pocket. Here is what you need to know before you choose which to use when you need to swipe the plastic.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Debit_Card\"><\/span><strong>What is a Debit Card?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Debit cards offer the convenience of a credit card but work differently.&nbsp;Debit cards&nbsp;draw money directly from your&nbsp;bank account when you make the purchase. They do this&nbsp;by placing a hold&nbsp;on the amount of the purchase. Then the merchant sends in the transaction to their bank, and it is transferred to the merchant&#8217;s account. It can take a few days for this to happen, and the hold may drop off before the transaction goes through.<\/p>\n\n\n\n<p>You will have a personal identification number (PIN) to use with your debit card at stores or ATMs.&nbsp;<\/p>\n\n\n\n<p>Some facts regarding debit cards.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You won&#8217;t pay interest on your purchases.<\/li>\n\n\n\n<li>You will not create any credit history and your existing credit profile will be unaffected by debit card spending.&nbsp;<\/li>\n\n\n\n<li>Paying with a debit card will take the money from your account pretty much immediately.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Credit_Card\"><\/span><strong>What is a Credit Card?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A credit card is a card that allows you to borrow money against a line of credit, otherwise known as the&nbsp;card\u2019s credit limit.&nbsp;You use the card to make&nbsp;basic transactions, which are reflected on your bill; the bank pays the merchant, and later, when you receive your bill, you pay the bank.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_facts_regarding_credit_cards_are\"><\/span><p>Some facts regarding credit cards are:<\/p><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The bank decides your credit limit based on your credit history.<\/li>\n\n\n\n<li>You will be charged interest&nbsp;on your purchases. To avoid paying interest, don&#8217;t carry a balance over from month to month.&nbsp;<\/li>\n\n\n\n<li>Your credit card balance and payment history can affect your credit score.<\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Features<\/strong><\/td><td><strong>Debit Card <\/strong><\/td><td><strong>Credit Card<\/strong><\/td><\/tr><tr><td>Spending limits<\/td><td>Daily limits on <br>spend and <br>cash withdrawals<\/td><td>Monthly credit limits <br>based on the card. <br>Monthly and daily limits <br>on cash withdrawals<\/td><\/tr><tr><td>Linked to<\/td><td>The cardholder&#8217;s <br>bank account<\/td><td>The issuing bank or<br>financial organisation<\/td><\/tr><tr><td>Bill<\/td><td>No bill generated. <br>Account statement <br>generated instead<\/td><td>Generated every month<\/td><\/tr><tr><td>Interest charged<\/td><td>As no amount is <br>borrowed <br>hence interest is not <br>charged<\/td><td>Only if you haven&#8217;t<br>cleared your bill on time<\/td><\/tr><tr><td>Eligibility<\/td><td>You can get a Debit <br>card easily if you <br>have a savings or <br>current account<\/td><td>Have basic eligibility<br>criteria, based on income,<br>existing relationship and <br>credit-worthiness.<\/td><\/tr><tr><td>Credit score<\/td><td>As no credit is taken,<br>hence no question of<br>credit score.<\/td><td>If you are consistently<br>failing to clear your bill<br>within the due date, it<br>affects your credit score <br>negatively.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_If_You_Pick_%E2%80%9CCredit%E2%80%9D_When_You_Swipe_Your_Debit_Card\"><\/span><strong>What If You Pick \u201cCredit\u201d When You Swipe Your Debit Card?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When using your debit card, you often have the option to pick a \u201ccredit\u201d transaction. But it\u2019s important to note:&nbsp;Choosing credit won\u2019t make your debit card act like a credit card.<\/p>\n\n\n\n<p>It doesn\u2019t help you&nbsp;establish credit history, and it doesn\u2019t give you additional consumer protections. Instead, selecting \u201ccredit\u201d or \u201cdebit\u201d just determines how the merchant processes the card (and what fees it pays). It also could change the processing time: \u201ccredit\u201d transactions might take a few days to clear, \u201cdebit\u201d transactions hit your checking account immediately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choosing_the_Best_Card_for_the_Situation\"><\/span><strong>Choosing the Best Card for the Situation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When trying to determine whether to use a credit card or a debit card, you should be honest with yourself and your ability to handle credit. If you have spending issues, it is better to use your debit card whenever possible, to prevent yourself from falling into credit card debt.<\/p>\n\n\n\n<p>Choosing the best card to use also depends on the purchase. Using a credit card might be the better option if you want to take advantage of credit card reward programs. But this system only works in your favour if you pay off the balance in full each month. If you find yourself carrying a balance, you may save in rewards, but you will wind up paying as much or more in interest.<\/p>\n\n\n\n<p>If you&#8217;re trying to build up your credit score, choose to <a href=\"https:\/\/lxme.in\/credit-cards-can-be-magic-cards-when-used-correctly\/\">use your credit card<\/a> occasionally. Making charges and paying your bill on time will create a record of responsible, creditworthy behaviour, which is reported to the credit bureaus and reflected on your credit report.<\/p>\n\n\n\n<p>Bottom line: If you don\u2019t have the discipline to only spend what you can pay off completely each month, stick with debit cards.&nbsp;Otherwise, a credit card is likely the better choice.<\/p>\n\n\n\n<p><strong>Share this blog with your friends and family if you find it insightful!!<\/strong><\/p>\n\n\n\n<p><strong>Download the&nbsp;<a href=\"https:\/\/lxme.onelink.me\/95JV\/moneycoach\" target=\"_blank\" rel=\"noreferrer noopener\">LXME app<\/a>&nbsp;now to start investing! Happy Investing!<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_Around_Debit_or_Credit_Card\"><\/span><strong>FAQs Around Debit or Credit<\/strong> Card<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1696593705021\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_a_Debit_and_a_Credit\"><\/span><strong><strong><strong><strong><strong><strong>What is a Debit and a Credit?<\/strong><br><\/strong><\/strong><\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p><strong>Debit:<\/strong> It represents a deduction from an account. When you make a purchase using a debit card, funds are directly withdrawn from your bank account.<\/p>\n<p><strong>Credit:<\/strong> It signifies an addition to an account. Credit transactions involve an increase in funds, such as when you make a deposit.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1696593710075\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Debit_or_Credit_Are_They_the_Same\"><\/span><strong><strong><strong><strong><strong><strong>Debit or Credit: Are They the Same?<\/strong><br><\/strong><\/strong><\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p><strong>Differences Unveiled:<\/strong> Delve into the nuances of debit and credit with LXME&#8217;s detailed guide. Understand which card suits your financial needs best.<\/p>\n<p><strong>LXME Expertise:<\/strong> Benefit from LXME&#8217;s expertise in decoding the distinctions between debit and credit, helping you make informed choices for your financial transactions.<\/p>\n<p>Navigate the financial landscape confidently by grasping the disparities between debit and credit, as elucidated in LXME&#8217;s insightful blog.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<div style=\"position: relative; overflow: hidden; width: 100%; padding-top: 56.25%;\">\n    <iframe style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%;\" src=\"https:\/\/www.youtube.com\/embed\/bUxglZxUnVE\" title=\"Should you OWN a CREDIT CARD? | LXME Explained\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div>\n\n\n\n<p>To stay connected with&nbsp;<a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.lxme&amp;hl=en&amp;gl=US\" target=\"_blank\" rel=\"noreferrer noopener\">LXME<\/a>&nbsp;and access inspiring content, follow us on&nbsp;<a href=\"https:\/\/www.instagram.com\/lxmeofficial\/\" target=\"_blank\" rel=\"noreferrer noopener\">Instagram&nbsp;<\/a>and subscribe to our&nbsp;<a href=\"https:\/\/www.youtube.com\/@LXMEofficial\" target=\"_blank\" rel=\"noreferrer noopener\">YouTube channel<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Navigate the financial landscape with confidence as we unravel the age-old debate: &#8220;The Right Card for You: Debit or Credit?&#8221; In this insightful blog, we delve into the nuances of both options, helping you make informed decisions tailored to your financial lifestyle. Whether you&#8217;re a staunch advocate for debit or find credit more aligned with <a href=\"https:\/\/lxme.in\/v1\/debit-or-credit-card-choice\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  The Best Card for You: Debit or Credit?<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":8117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[658],"tags":[45,132,447,21,11,34,26],"class_list":["post-3299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-card","tag-credit-card","tag-debit-card","tag-debit-or-credit","tag-finance","tag-money","tag-spending","tag-women"],"acf":[],"_links":{"self":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/3299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/comments?post=3299"}],"version-history":[{"count":15,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/3299\/revisions"}],"predecessor-version":[{"id":7390,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/3299\/revisions\/7390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media\/8117"}],"wp:attachment":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media?parent=3299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/categories?post=3299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/tags?post=3299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}