With the digitization, we have experienced the multiple methods of fund transaction and have already heard about the concept of credit card, prepaid card, and a debit card. There are vast differences among these cards which can be easily understood after reading the below information about them.
Prepaid Cards vs. Credit Cards:
People often misunderstood that prepaid card and credit cards are the same but the reality is that prepaid cards are quite different from the credit card. It becomes perplexing because it looks like the same which have the same logo, network, and card issuance authority.
Credit card is a card in which you are borrowing money from the respective bank and you will get the specific time to deposit money with required interest if applicable by the bank. On the other hand, the money that you are spending through prepaid card has already in your card in advance. To get the instant approval credit cards online you can check your eligibility and apply for the same.
Prepaid Cards vs. Debit Card
Now you will be little more confused that prepaid cards work like the debit card. But they both are also different. Prepaid card is not synced with credit union share draft account and a bank checking account, as an alternative you are doing the transaction on the behalf of advance money in your prepaid card which is often called loading money on to the card. It is also notable that, a user cannot spend money exceeding the amount loaded in the prepaid card.
The debit card allows you for the overdraft facility from a bank which means that your bank will charge you for the ATM withdrawal that overshoots the funds available in your saving account and your bank will ask you for the repayment of overdraft facility availed.
Credit Cards vs. Debit Cards
Debit cards and credit cards have generally a 16-digit number with other details mentioned on it such as expiry date, cardholder name, CVV numbers, and all that. The differences are: The user can withdraw the money through the debit card which has already been deposited in the saving account of the card holder.
On the other hand, a credit card gives borrowing facility to the users which means the user can spend money by borrowing the money in a certain limit and then deposit the money in the card within a given period of time decided by the issuing bank. You can easily get credit card apply online facility on varied platforms.
You can also explore Antworks Money which is a credible source for financial services. People should understand the difference between a credit card, debit card, and a prepaid for the stress-free and hassle-free usage.