Debit cards and credit cards are very common to us. They are two different cards, but many people can’t tell them apart. So today I will tell you about their main differences.

The difference between debit card and credit card

1. Different overdraft regulations

Debit card consumption cannot be used with overdraft, while credit card can be used with overdraft. This can be said This is the most essential difference between the two bank cards.

2. The application conditions are different

When applying for a debit card, you only need to provide an ID card. When applying for a credit card, consumers not only need an ID card, but also a stable income. .

For consumers, debit cards can be used in any way. But this doesn't apply to credit cards. Although consumers can overdraw when using a credit card, sooner or later they will need to pay it back. If consumers are unable to repay, their overdraft funds will become "bad debts" for the bank.

Debit cards, often called savings cards, are mainly used for savings deposits, ATM cash withdrawals, transfers, and various types of payments. Deposit first and spend later is the biggest feature of debit cards. Debit cards do not have the overdraft function of credit cards. Cardholders must open an account with the card issuer and maintain a certain amount of deposits before they can pay for consumption. The payment amount cannot exceed the deposit amount. Generally, there is no handling fee for withdrawing funds in the same city. Deposits on the card enjoy interest.

Credit card, its main function is small overdraft loan. The main function of a credit card is for consumption.