debit card

Some Notable Differences between Debit and Kredittkort (Credit Cards)

Financial institutions have grown in leaps and bounds with time. This was not the case several centuries back as the safekeeping of assets was not as advanced as it is today. You should even know that it is only going to get better.

One of the improvements has been the use of cards for transactions. Here we are talking about debit and credit cards.

Speaking of how the banking and financial institution at large has evolved over the years, some studies have been conducted to understand the trends over time. If you would like to know about the evolution of the banking and financial sector, you can read this article.

This article is going to shed light on one of the areas that have seen improvements in banking and financial services. This is the use of debit and credit cards. Here, we will discuss the differences between both cards.

This subject is very relevant for almost everyone. This is especially considering how some people are caught in between the decision to get a debit or credit card. You should keep reading if this is a decision that you are finding difficult to make.

Some of the Things that Make Debit Cards Different from Credit Cards


Both cards are issued by financial institutions and have some things in common. Two of the similarities have to do with their looks and how they make transactions as easy as possible. However, there are differences between both of them. Some of the differences include the following:

They Do Not Have the Same Definition

The word “card” is something that they both share as they operate using the card system. However, their definition is different.

With credit cards, the cardholder is allowed to make purchases by borrowing based on the limit set by the issuer. This is not how a debit card works. This is because you can only pay for services or goods based on the balance you have in your account with the issuer. This is the clear-cut difference between them.


People that own credit cards have an edge over those that have the other kind when you think about incentives. This card comes with a wide range of incentives that the cardholder can take advantage of.

This is even though the kind of incentive depends on the card you get, the generosity of the issuer, and several other factors. However, it is a lot better than what owners of the debit kind enjoy.

Amount of Funds You Can Access

With the debit kind, the amount of funds that you have access to is determined by the amount you have in your account. So, you can spend it as long as you have that much in your account.

This is not how it works with credit cards. You can spend as much as your set limit permits. You do not need to have the amount in your account. However, it is not free money as you have to return it on or before the set date.

Failure to do this would see the massive interest rates begin to accrue. This is how some owners of this card get themselves into so much debt. Some even need a refinance loan to get themselves out of their financial problems.

The point here is that credit cards are a good thing but caution is of the essence when using them. This is what financial experts and analysts stress several times and you should heed this warning.


Using any of both cards means that you would have to pay certain charges from time to time. However, it is more with the credit kind than with the other one.

For the most part, what cardholders of the debit kind have to pay in charges are PIN regeneration and annual charges. Some issuers demand a small amount for card maintenance. But by and large, it is not as much as what owners of credit cards have to pay.

Owners of credit cards have to pay for charges such as annual fees, joining fees, and bounced cheque fees. When the cardholder does not play by certain rules, s/he would have to pay late payment fees and interest accrued on the amount that was not paid on time.


This is one area where owners of credit cards fare better than owners of the debit kind. This is because the issuer bears the brunt when there is a theft problem. This is not often the case for people that own a debit card.

However, the narrative is changing as some debit card issuers are taking measures similar to those taken by credit card issuers. But by and large, credit card owners are better protected in terms of liabilities that come with a lost or stolen card.

This is even the case when there is a kredittkort test (credit card test). This is simply fraudulent activities performed using information from a credit card. The edge that this card has in terms of security and protection of cardholders is one of the reasons some people go for it other than the debit kind.


credit card

Some people are caught in between the decision to choose either a debit or credit card. Well, you are better equipped with information to help you make the right choice now.

This is considering the details shared right here in this article. We advise that you take note of the pros and cons of both cards as mentioned here and make the right decision going forward.