Credit Vs Debit Cards

The world of cards is growing and getting larger every day.  It seems that almost everything that you do will have some type of credit card or debit card associated with it.  When we open a new account at a bank such as Columbia Bank Woodbridge they will offer you a debit card that is associated with your account.

Credit Cards

Credit cards are cards that loan you money.  How they work is a credit card company will issue you a card with a predetermined credit limit.  This can be a few hundred dollars to several thousands of dollars, all depending on your credit score.  Then when you use the cards you are expected to pay the money back.  This can be a good thing since you are building your credit score and showing people how reliable you are with their money.  It can also be a bad thing if you don’t pay it back.

Debit Cards

Debit cards don’t have a predetermined limit.  A debit card is attached to your bank account and depending on how much money you have in your account, will determine how much you can spend on the card. 

When we look at a credit card, we are given a credit score that is managed at the credit union.  These scores determine where we fall on our credit worthiness.  If we have a low score, then people will be hesitant or unwilling to give us credit.  However, if we do pay and we have a good score, then we will be able to get a higher limit and be able to do more things.

Columbia Bank
604 Amboy Ave, Woodbridge
NJ 07095, United States
Phone: +1 732-855-1035

Managing money

No matter what we do either have a credit card or a debit card, we need to learn how to manage or money.  If we spend too much money on our credit cards we will get hit with points for using too much of our available credit.  If we use too much of our debit cards, we eat into our savings.  So, money management is vital all the way around.