The two most popular banking products are debit and credit cards. In this article, we will look at their differences and similarities, which type is better and in what cases. At the end, we give a description of the best bank cards on the market.
1. Differences and common points
1.1. Main differences between debit and credit cards
1 The debit card contains personal money that can be spent. Bank money is spent on credit. The ideology of the cards is different: one serves to store funds, the other makes it possible to quickly borrow.
2 A debit card is used as a convenient way to store personal money. There is no money on your credit.
3 You can withdraw cash from a debit card without commission (at least at ATMs of the bank that issued it). With a credit card, a commission will be charged for withdrawal, so it is better for her to pay only for purchases.
There are several types of credit cards on the market that allow you to withdraw cash without commission.
1.2. What do the two cards have in common?
- Identical operations (crediting, cash withdrawal, payment for purchases);
- Can be opened in foreign currency;
- Possibility of issuing additional cards;
- Internet bank;
- Good bonuses that many banks provide;
- The presence of a chip, contactless payment technology (PayPass);
- Availability of card number, surname and name of the holder, expiration date, CVV/CVC code;
- The card is issued by a bank and is tied to only one holder;
2. What is the benefit of a debit card
- Only your money lies on them, they can be spent at any time and at the same time nothing should remain due to anyone.
- There is an overdraft service (the ability to take a loan). In fact, this service turns a debit card into a credit card. However, the difference is that credit conditions will be better.
- There are debit cards that accrue cashback and interest on the balance (Tinkoff and Use). Thus, you can earn on it.
- Easy to withdraw cash.
There are no downsides to a debit card. This is simply the most convenient way to save money and pay for purchases, which is suitable for all occasions.
3. What is the benefit of a credit card
- There is a grace period for debt repayment (grace period). So you can borrow money and pay no interest.
- For payment by credit card, various bonuses are awarded (cashback, points). True, many banks instead of cashback give points that can be exchanged for money only in certain categories, which is not very convenient.
- You can quickly borrow without going to the bank and without filling out any documents.
- Overdue fees will be charged for the grace period. You will also have to pay interest for the entire grace period.
- For shopaholics, a credit card is a motivator to spend more.
- Many banks offer credit cards with an annual fee.
4. Best bank cards
1. Debit cards
1 Tinkoff. Interest on the card balance 7.0%. Cashback on all purchases 1% (for amounts that are multiples of 100 rubles). There are special offers. Withdrawing money from all ATMs in the world without interest, provided that the withdrawal amount is from 3000 rubles. Free interbank transfers. The card will be delivered to you anywhere absolutely free.
2 Benefit (Homecredit Bank). Interest on the card balance 3%. Cashback on all purchases 1%. There is always an increased cashback at gas stations, pharmacies, cafes — 3%. Every month you can choose 3 preferential categories with 5% cashback. The first five withdrawals per month in all ATMs of the world any amount without commission.
These are two of the best debit cards on the market. I recommend them for use.
2. Credit cards
1 Tinkoff. The grace period is 55 days. There is a cashback. The maximum loan amount is 300 thousand rubles. Service 590 rubles per year.
2 Halva (SovcomBank). The grace period is 365 days. The maximum amount is 350 thousand rubles. The service is free. The balance above 0 is subject to interest at the rate of 6.5% per annum.