Debit Card Versus Credit Card: Which Is Right For You?

Credit card step by step guide

Do you know the differences between a debit card and a credit card?

There are many, but the main distinction is whether you “pay now” (debit) or you “pay later” (credit).

Here’s how each card works.

Debit card

It is linked to your savings or current account, and most of the ATM cards today also double as a debit card. Though you won’t fall into debt with a debit card, there are still various implications to using one.

In a nutshell, a debit card:

  • does not have a credit limit,
  • takes funds directly from the bank account whenever the card is used to make payment, and
  • does not allow payments exceeding the balance in the bank account.

Credit card

It is a commonly used payment method by most working adult. It allows its users to make payments through credit with the bank.

If not used wisely, it can lead to various money mismanagement problems and debts. A credit card:

  • has a credit limit,
  • allows its users to borrow money from the bank to make purchases,
  • has an interest-free period of around 20 to 45 days for its users to clear their debt, and
  • charges an interest for any outstanding balance after the said period.

Unless you are a careful, diligent spender, these cards can be very expensive with interest charges and fees.

On the other hand, because of the instant access to your bank account, fraud prevention is perhaps more important when you own a debit card. If it falls into the wrong hands, your bank account is at risk and could potentially be emptied.


Interested to learn more? Find out what are the advantages and disadvantages of credit card and debit card

Want to get a plastic? Compare all the credit cards available in Malaysia on our credit card comparison page and apply for the best. 


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