Debit or Credit? We’ve all been asked this question a hundred times, but we don’t always think much about it. While both types of cards have benefits, they work in very different ways. We compared debit and credit cards so you can learn more about these differences and figure out what works best for your financial needs.
Debit or Credit?
Debit cards and ATM cards are attached to your existing bank or credit union accounts. Their limit is set by whatever you have. Whenever you swipe or insert your card, the cash comes right out of your account.
Credit cards allow you to borrow money from a credit card company. These cards have a limit that you may not exceed. Cardholders must make payments on their balance, which in turn helps them by increasing their credit score.
Your Cards: Side-By-Side
|1. Uses the money from your accounts||1. Borrows money from credit card company|
|2. Limit comes from your balances||2. Limit is set and based on your credit score|
|3. No payments to make on purchases||3. Payments made with varying interest rates|
|4. No cash advance or balance transfer fees||4. Some fees may apply|
|5. No rewards to be earned||5. Possibly earn rewards|
Pick Your Preference With MNFCU
Everyone has their preference, but with MNFCU, you don’t have to choose. We have both debit cards and credit cards for our members. Our accounts have excellent features to help you manage your money, while our MasterCard has low interest rates, no fees and earns you rewards. Stop in to become a member, today!