Credit cards and debit cards are convenient financial tools that are different in how they are used and what you can do with them. It is important to know how they are different to make the most of them.
It is easy to be confused about the difference between a credit card and a debit card. The confusion is acceptable as both debit and credit card eliminate the need to carry cash, offer convenience and they even look similar – they both have 16-digit card numbers, PIN codes and expiration dates. But that’s where the similarity ends.
So, what’s the fundamental difference between a credit card and a debit card? The difference is from where these cards pull the money from. A debit card takes it directly from your banking account and a credit card charges it to your line of credit.