I’m sure by now, you’ve probably heard of these two types of credit cards. While it may be your first time getting a credit card, you may find yourself getting into more than what you bargained for. From secured credit cards to prepaid credit cards, you have no idea what ANY of these cards mean. In this article, we will help you separate the two main ones – the debit card and the main credit card that you will probably apply for in the near future.

The debit card is a simple one. Your bank typically issues a debit card. This card is tied in with your checking account. Every time you use your debit card, the money will be automatically withdrawn from your checking account. When using the debit card, be aware that some financial institutions may charge you for using it too many times a month. Please refer to your bank’s policy when using this type of card.

The nice thing about a debit card is that it helps you with your spending. It’s a cash card and the cash will disappear instantly from you account instead of being credited on your bill 30 days later. This helps take away from the mindset of “free money” and spending more than what you have.

A credit card on the other hand is a little bit handier when it comes to theft. It may be a little less stressful to have your credit card stolen rather than your debit card because of the fact that your money from your checking won’t disappear instantly. Instead, your credit card is just billed and your actual money isn’t gone yet. This way you will be able to contact the theft department and sort things out. Most banks are usually really good with theft, only holding the consumer reliable for the first $50 or so.

As mentioned above, a debit card may help you become a little bit more responsible with your money. This doesn’t mean you can’t be responsible with your credit card also. Every major credit company now allows you to access your account online at any time. This way you will be able to track all of your spending and not spend more than what you actually have. This of course, over time will help you build up your credit. Building up credit helps you get better loan rates, a better mortgage rate, and so many other perks!

It’s your decision when it comes to these two cards. It never hurts to carry both just in case you need that credit card in an emergency when you have no other funds. Just remember that your bank typically issues a debit card. If you want a card similar to a debit card, you can always apply for a prepaid credit card. A prepaid credit card allows you to send money to bank and they will load it with that amount. This card can be then used as a major credit card anywhere the card is accepted.