In contrast to debit cards from credit

Plastic cards - a popular payment instrument. There are two types of cards: credit and debit. Between them there are some fundamental differences.

Distinctive features of debit and credit cards

Credit and debit cards are not visually different from each other. Both species act as a means of payment, they can pay for purchases in many retail and service companies. Most often they are issued in payment systems Visa and MasterCard.

Debit cards allow you to use only their own money. To go in the negative on this card is impossible. While credit allow you to borrow money from a Bank, which provides the tranches within the maximum credit limit. In fact, the credit is the same loan, but renewable. Its advantage is that when paying the debt, the credit limit becomes available again. The borrower can spend money without limits and is not obliged to report to the Bank on the proper use of money.

Of course, the Bank lends money on a credit card is not free, but receives a certain percentage. But in many card set grace period during which interest on the used funds not be awarded.

Some banks offer special conditions for the accrual of interest on own funds and debit card. In this case, it can be perceived as a form of contribution.

The purpose of the credit card - cashless payment. That is why banks establish the big commissions for removal of cash and set limits on cash withdrawals. On debit cards is not limiting. The user can without any fees to withdraw cash at ATMs and to pay for card purchases in stores.

Users of credit and debit cards in some banks can count on cash-back. When making non-cash purchases, part of the money will be returned to them on the map. It should be noted that this is optional and can be omitted.

Particulars of debit and credit cards

The differences between debit and credit cards appear and the procedure of their registration. Debit cards can be issued according to the statements of the users themselves or their employers to transfer salaries. In the latter case, the employer often assumes all costs associated with the preparation and use of the card. Often debit cards offer students and pensioners to enumerate them scholarships and pensions, respectively.

Credit cards are opened only at the request of the citizen. And he alone is obliged to compensate all expenses that are provided banking program.

Debit cards are available to a wide range of citizens aged 18 years. Denied registration debit cards, banks are extremely rare. This can happen, for example, when a person is involved in fraud for cashing in of money. For registration it is enough passport and the application to issue the card.

A credit card are harder to obtain. In most cases, banks require proof of income and certain duration of work experience. The list of requirements may vary depending on the Bank. In the number of documents requested typically include 2-income tax, passport and additional documents (law, military ID, etc.). The cost of issue and annual service of credit cards is higher than debit.

Both cards are issued at the Bank branch or apply online.