Debit cards
It is the most popular type of card and it is issued for almost all types of personal accounts.
The usage of this card charges your account at the moment of any transaction. A value of the transaction can not exceed the sum of money that is on the account, unless your bank allows you to use debit (this is why these cards are called debit cards).
Banks issue such cards free of charge or for very low cost. It is mostly used for pay-outs from cash machines or payments in the shops. Some banks also enable using such cards for online payments. Previously, it was possible to pay online only by credit cards.
Credit cards
This card enables credit up to a particular limit. If a credit is paid within 1-2 months, no interest is charged. In case of later repayment, bank charge the interests.
At present, credit card interest rate amounts to over 20 percent. It should be born in mind that it is indispensable to repay an obligatory amount that in most cases amounts to 5 percent of a credit. Such minimal amount is charged every month. For example, if you paid more than this minimal amount in one month, you still have to pay a full minimal amount next month. You should also remember that withdrawing money from ATM using a credit card is quite expensive. You will pay a commission and interests will be charged from that moment on. Interest-free period is applied only in case of settlements not involving cash.
Obtaining a credit card is not as easy as it is in the case of debit cards. You have to show a confirmation of your employment and salary or at least you should be a bank’s customer for a particular period of time.
