Although a debit card looks just like a credit card, it works quite differently from a credit card.

Difference Between Debit and Credit Cards

It is possible to use a debit card as a credit card in most of the cases such as in gas stations, restaurants, and many other merchants. But the difference between the both is that a debit card instantly withdraws

money from your bank or investment account to pay for any purchases made with the card, and thus, there is no credit involved.

In contrast, credit cards allow a customer to make purchases until a set spending limit is reached, after which a statement will be sent out with the balance and available payment options.

When using a debit card, the purchases are instantly deducted from the consumer’s account, and thus the consumer never spends more than what they have available in the associated account.

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Although banks and universities both promote credit cards for college students, but still many students face a catch-22 when applying for their first card. This is mainly due to insufficient credit history. As most of the students are getting their credit cards for the first time, they don’t have a credit history and thus face, the dreaded credit catch-22.

If you want your child to get a credit card, then here is a list of five strategies for getting them to go towards the path to good credit.

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