Lillian has finished her grocery shopping and is about to pay for her items. There's a line of anxious customers behind her. She doesn't carry a lot of cash, so she pulls two cards from her purse – a debit card and a credit card. She recently received a free debit card with her checking account, but doesn't know how to use it. Is it the same as a credit card?

This is a common scenario faced by many people. Since debit and credit cards often look alike, it can be difficult to tell the difference. Both cards have unique qualities that can benefit the cardholder in various ways.

The Merits of Debit and Credit
Here are the main differences between the two cards:

A debit card is like writing a check. When used to make purchases, the amount is automatically deducted (subtracted) from your checking or savings account. Just as if you were writing a check, you need to know how much money you have available. If you spend more than you have in your account, you could overdraw it (if you were writing a check, it would be called a "bounced check") and may have to pay a fee. Keeping a written record of your spending in your check register can help
you avoid this situation.

A credit card can also be used to make transactions, but unlike a debit card, you're "borrowing" the money. It will need to be paid back with interest, according to the terms of the card. If you're careful about paying your bills on time, a credit card can be a worthwhile spending tool.

Which Do I Choose?
Using a card is less time-consuming than carrying and counting cash or writing a check. Endura Financial gives you many financial choices. Depending on your spending habits, you may wish to have both a debit and credit card, or you may prefer one over the other.

To apply for a credit or debit card or to learn more, stop by a branch or call us at 612.951.1500 or 800.533.4004.