Debit cards are similar to credit cards in that they can be used to make purchases at stores, restaurants, and online. However, there are some key differences between debit cards and credit cards.
-
Debit cards are linked directly to your bank account. This means that when you use a debit card, the money is taken out of your account immediately. With a credit card, you have a few weeks to pay back the amount you borrowed.
-
Debit cards do not help you build your credit history. When you use a credit card and make your payments on time, you are building your credit history. This can help you qualify for loans and other forms of credit in the future. Debit cards do not have this same effect.