The differences between the three types of cards is very simple and we will put it as follows:
- Credit card = Money lent by the bank.
- Debit card (payroll) = Money you save or receive for your work.
The credit card is like a personal loan that you can use whenever you want, but you will have to pay at the end of the month. That money is not yours.
The reality is completely different
The reality is completely different, the credit bureaus have the records of the credits you have in the bank to make your purchases. This money is yours. Either product of your savings or payment of your payroll.
The debit card (or payroll) is like an extension of your bank savings account: it helps you make your purchases or withdraw money from the ATM.
Are the debit card and the payroll card the same? Yes
How to use credit and debit cards in your favor
If you are an independent worker, a good way to open the doors in the financial system is with a savings account.
By having an account of this type in the bank you will have the possibility to request your bank statements and use them as proof of income when you need a loan.
It is also easier for the bank to offer you a credit card after a while.
We are clear that debit cards are like cash: it is your money and you can pass your card in millions of stores to pay for your purchases. Debit cards offer no additional incentive to use them. Some banks usually award points, but they are few.
On the other hand, the credit card can offer you purchases in months without interest (you take the product to your house and pay it every month at the bank), trips, promotions etc. Credit is a good instrument if you know how to use it.
Remember to keep in mind the cut-off date and payment of your credit card, since the purchases you have made will have to be paid at the end of the month.