The Differences Between Debit and Credit Cards (Kredittkort)

You probably understand that both debit and credit cards look almost the same. They feature expiration dates, 16-digit card numbers, EMV chips, and magnetic strips, among other things. The main idea is to use them to make convenient and straightforward purchases online or in stores. 

However, we must state the main difference: debit cards will allow you to draw on funds deposited at the bank, and you can spend them based on your amount. On the other hand, credit cards will let you borrow money from a provider to a particular limit to withdraw cash and purchase items directly, which is essential to remember.

It does not matter whether you have at least one debit or credit card in your wallet or not because you will achieve both protection and convenience with them. OF course, we have stated the primary differences between them, which will help you determine the best course of action.

What Is a Credit Card?

Generally, a financial institution will issue a credit card, in most cases bank. Therefore, you can borrow funds from a particular institution based on the limited amount. As a holder, you agree to pay money with interest rates, depending on the terms you can. They will issue a credit card in specific situations, including:

  • Standard – They can help you take advantage of a line of credit to balance transfers, make purchases and get cash advances. In most cases, they do not feature annual fees, which is vital to remember. 
  • Premium – On the other hand, you may get a premium option that will offer airport lounge access, concierge services, and special event access. Of course, they come with a higher annual fee than other options you can find on the market. 
  • Reward – You can take advantage of travel points, cash back, and other benefits based on the amount, where, and how you spend.
  • Balance – They feature low introductory interest rates and expenses on balance transfers from others. Therefore, you can use it for debt consolidation, especially if you wish to avoid hefty interest rates. 
  • Secured – When it comes to secure options, you should know that they require an up-front cash deposit that an issuer will use as collateral if you cannot repay the amount you took. 
  • Charge – Generally, they do not feature spending limits, but you cannot carry unpaid balances from month to month, which is vital to remember. 

They use discounts, reap cash, travel points, and other benefits unavailable to debit cardholders. You can take advantage of rewards on a flat-rate basis or any other. For instance, you can get two miles for a one-dollar purchase, while different products and services may offer you more miles. 

As a result, you can use the miles in your future travel arrangements, reducing future expenses.


It is vital to remember they come with certain advantages. Therefore, you should understand them before you make up your mind.

  • Boost Credit History – Using them will affect your credit score and report, vital to remember. That will lead to positive histories, such as low credit utilization points and on-time payments. At the same time, the report can feature negative aspects, including delinquencies and late fees. Generally, credit report information is essential for your credit score. Therefore, if you are a responsible spender, your score will increase, meaning you can borrow more money for low-interest rates in the future. 
  • Purchase Protection and Warranty – You should know that some of them will offer you additional insurance and warranties on purchased items depending on the brand and retailer you decide to choose. Everything depends on the provider you have, so you should check out the rewards program beforehand. 

What Is a Debit Card?

It is vital to remember that a debit card is perfect for making payments by deducing money from your checking account from a particular bank. Therefore, you will not borrow money, which is vital to remember. 

At the same time, they come with consumer protection and convenience, especially when you get them from significant payment processors, including Mastercard and Visa. We can differentiate two types:

  • Standard – We are talking about the one that draws funds from your banking account. 
  • EBT or Electronic Benefits Transfer – Federal and state agencies can issue them to allow you to use numerous benefits to make specific purchases, which is vital to remember. 
  • Prepaid – You will get access to a bank account, which will help you make electronic purchases based on the amount you preloaded beforehand. 

Consumers choose to use them because they come with low fees and interest rates, similar to credit cards. Of course, if you spend more than the amount you have in the account, you will get an overdraft fee, which is vital to remember. 

Compared with credit cards that usually charge annual, over-limit, and late payment fees, among others, you can rest assured with debit ones. 


  • Prevent Debt – You should know that a debit card draws on money that you already have, which will reduce the danger of getting into a vicious circle of debt. At the same time, retailers know that people spend more when they use plastic instead of cash, which is vital to remember. Therefore, when you decide to use a debit card, you can avoid the temptation of credit and stick to your budget. As a result, you will prevent high-interest issues that may happen. By visiting this site: kredittkortpå, you will learn everything about revolving credit before making up your mind. 
  • Fraud Protection – Choosing the one issued by major companies such as Mastercard and Visa will help you prevent potential issues from happening. For instance, these companies are implementing the latest protection advancements that will help you throughout the process. The main goal is to report theft or fraud the moment you realize it happened. Everything depends on a timeframe, meaning if you wait too long to handle unauthorized purchases, that may lead to significant losses. 
  • Avoid Annual Fees – Although numerous credit cards come with annual fees, it is vital to remember that debit cards do not have. Everything depends on the bank and ATM, but you will not get fees from your bank’s automatic teller machine. Credit cards charge cash advance fees, which will affect your situation. Still, you should pay for checking account maintenance, which is vital to remember.

Remember that you cannot get rewards with a debit card, meaning the accounts may offer you specific benefits for high-balance transactions. For instance, standard options come with a round-up feature, meaning you can transfer small amounts without a fee, which is not possible with other options.

Final Word

As you can see from everything mentioned above, both debit and credit cards look similar, but they come with specific benefits that will affect your financial situation. 

Therefore, if your goal is to cash in rewards and build a credit score, then a credit card is the best tool to help you throughout the process. However, if you wish to keep tight on finances and avoid overspending, you should get its debit counterpart. 

It does not matter which one you choose because you should check terms and regulations to determine whether an account comes with associated fees. It is as simple as that.