Debit Card:
- Direct Access to Funds: Linked to your bank account; transactions are funded by your available balance.
- No Interest Charges: You’re using your own money, so there are no interest charges.
- Spending Limits: Limited to the amount available in your account.
- Impact on Credit Score: Typically does not affect your credit score.
Credit Card:
- Borrowed Money: Allows you to borrow money up to a certain limit.
- Interest Charges: Interest is charged on outstanding balances if not paid in full each month.
- Higher Spending Limits: Generally offers higher spending limits based on your creditworthiness.
- Impact on Credit Score: Responsible use can help build your credit score.