What’s the difference between a Credit Card and a Debit Card?
When you spend on your Debit Card, you’re using your own money, which is taken automatically from your current account. This means you usually can’t spend more money than you already have.
A Credit Card, on the other hand, is completely separate from your current account. When you buy something with a Credit Card, you are essentially borrowing money to make the purchase and this amount will need to be paid back later. Your Credit Card issuer pays the vendor, then you repay the Card company.
This allows you to spend, even when you may not have the funds readily available. You can choose to pay off the full balance of your spending each month or repay it over time. You will be charged interest if you do not pay the balance in full each month. So, if you need to make a larger purchase, a Credit Card could be a more convenient option.