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 775.789.3155.
What's the Difference?
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
credit card?
This is a common scenario faced by
many consumers. 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 to
work with. 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. Great Basin
Federal Credit Union 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 775.789.3155.
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