Difference between debit and credit card

The confusion surrounding the credit and debit cards is somehow extreme, as most people tend
to be unable to define what makes a card, a credit card, and what makes a card, a debit card.

First of all, debit cards can be issued to everyone, as there is no credit on them (thus the name debit).

Obtaining a credit card does NOT mean that you can go out and rent a suite at the Hilton just because
you have a credit card. If the hotel decides to reserve the money on your card (which they would do in
99% of the cases), they will actually deduct a specific amount on the card. Now this is possible on debit
and credit cards, but policies define that debit cards are high risk, therefore hotels require credit cards.
Now back to if they decide to reserve an amount.

If you credit card has 10$ on it, and the room costs 200$, then even if it is a credit card, it will NOT work.
Why is that then. Well first of all, credit cards does not allow for unlimited charge, it only allows for charge
on what is available on the card. Basically the only difference between the credit and debit card is that the
bank usually issues a credit line on the card (2000$ or so) that is paid back in full or whatever the agreement is with the bank.

Now people would assume that having a credit card gives more freedom, which it does, but that does not mean charging huge amounts
more than the card allows. You can do it to some extend and have the account go into minus, but every
card has limits, or anyone would buy a Ferrari on it and leave the country. Anyway, post your experiences
with debit or credit cards, I still hear different opinions regarding how it works due to different bank
regulations etc.

[url=https://www.loan-free.co.uk/]Debt Solution[/url]

Replies (2)

good one

nice

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details