by Misty Hickman

What is a Debit Card?

Dictionary’s Definition: a plastic card that resembles a credit card but functions as a check and through which payments for purchases or services are made electronically to the bank accounts of participating retailing establishments directly from those of cardholders.

“The Easy Definition” : A card given by a bank that cardholders can use to buy goods and services. The money on the card is the cardholder’s money, and wants it runs out, it is out. To be able to use the card again, the cardholder must put more money into the check- account , the card is connected to. 

What is a Credit Card?

Dictionary’s Definition: A card that identifies a person as entitled to have food, merchandise, services, etc., billed on a charge account.

“The Easy Definition” : A given by a bank, company and etc., that lends you money to buy goods and services. Each month you will be billed the amount you owe, if you do not pay the full amount, you will have to pay interest on the principal.  

With the T-Chart above you can see there are many advantages and disadvantages with Credit and Debit cards but it really depends on what you use the card for. If you go out a buy a TV, that you maybe buy before you get paid in a couple days than you might put it on a credit card. If you spend $50 at the Giant than you would most likely put it on a debit card that takes it right out of your account. Both cards are good to have, and if you only can have one, than chose the one that best fits you. If you are 19 years old and still in college, it might be better to have a debit card and not a credit card where you can get debt and lower your credit score. You don’t want to be the man in the picture who is struggling to pay his bills because he over spent with a credit card. Today more and more young adults are racking up debt from credit cards because companies target young adults.  If you are a married mom with two kids, it might be best to have a debit and credit card in your purse.