How to distinguish credit cards and debit cards?

Credit cards and debit cards look and function differently. Next, let’s take a look at how to identify credit cards and debit cards.

01

Functionally

Credit cards can be understood as a means of borrowing money from others. A certain amount of interest needs to be paid, but no items are required to be pledged; while savings A card can be understood as depositing your savings in a bank and charging a certain amount of interest.

02

Period

Credit cards are generally short-term and can be borrowed and repaid at any time. For example, if you take a loan from Huabei, you will generally borrow money this month and pay it back the next Monthly repayments can be made at any time; savings cards are generally long-term, such as more than one year.

03

Appearance

You can touch the text on credit cards and debit cards with your hands. You can see that the text on credit cards is concave and convex, while on savings cards The card text does not, it is flat.

04

In terms of overdrafts

Credit cards can be overdrafted, for example, you can overdraft about 5,000, while debit cards cannot be overdrafted, and generally can only be deposited.

What are the differences between debit cards and credit cards?

The difference between debit cards and credit cards is reflected in the following aspects:

1. Credit cards have the function of overdraft consumption, while debit cards cannot overdraft.

2. Cardholders can enjoy an interest-free period of up to 56 days after using a credit card (the regulations of each bank are different). As long as the cardholder repays the balance in full at the end, there is no need to pay. Any fees, but interest needs to be paid beyond this period; cardholders generally do not need to pay any fees when using a savings card to make purchases, and there is no limit on the repayment period.

3. Cardholders need to pay a handling fee if they withdraw the overpayment from their credit card; however, when withdrawing cash with a debit card, peers in the same city do not need to pay a handling fee.

The difference between debit cards and credit cards

Deposit cards and credit cards are relatively common in our lives. Many friends have debit cards and credit cards in their hands, but some friends are not familiar with them. If you still don’t understand the difference between a debit card and a credit card, let’s take a look at them together.

Deposit cards and credit cards are essentially different. Deposit cards are bank cards issued by banks to provide financial services to depositors, while credit cards are credit instruments issued by commercial banks to qualified users that can be used for overdraft consumption in advance. , the main differences between debit cards and credit cards are as follows:

1. Different nature: debit cards are debit cards, and credit cards are credit cards. The debit card must have the user's own money and deposit money into it before they can perform a series of operations such as consumption and transfer. With a credit card, there is no need to deposit money in the card. You can use the bank's credit limit to swipe the card, consume first and repay later.

2. Application conditions are different: The conditions for applying for a savings card are relatively simple. Usually, as long as you are over 16 years old, you can bring your valid ID to a bank branch to apply for a savings card. There are many conditions for applying for a credit card. The applicant needs to be over 18 years old, have a stable job and income and provide relevant certification materials, and the personal credit status is good to have the opportunity to apply. After the applicant submits an application for a credit card to the bank, The bank will evaluate the applicant's overall situation and issue a credit card to the applicant only after the bank's review and approval.

3. Different credit impacts: Although debit cards can also be used for purchases, they use the cardholder’s own money, unlike credit cards. Credit cards use funds provided by banks, so users use credit cards After consumption, we need to repay on time within the specified time. If we are overdue when using a credit card, the bank will upload the credit card overdue record to the central bank's credit reporting system, which will have a great impact on our future credit life.

4. Different fees: If the user only has one savings card in a certain bank, the card can be exempted from annual fees and small account management fees. The charging standards of credit cards are based on the card limit. Regarding credit cards, usually the higher the credit limit, the higher the annual fee. However, most banks provide services such as swiping the card to waive the annual fee or using points to offset the annual fee.

That’s it for the introduction on how to distinguish between debit cards and credit cards.