Credit cards and ATM cards are very similar in appearance since they are both plastic cards that can be used to make financial transactions. They are, however, worlds apart in terms of function, objective, and impact on financial security. Here we will help in better understanding their special qualities and how to use them effectively to optimize advantages and reduce dangers.
Credit cards
Banks as well as financial institutions provide you credit cards which basically is a medium for financial leverage; with them you are eligible to spend borrowed amounts at whatever amount, repay the debt any time because that serves you revolving credit.
ATM cards
Often called a debit card, an ATM card is actually connected directly to your savings account. It lets you access the money in your own accounts to make purchases, withdraw cash, and conduct other everyday banking transactions.
In conclusion, despite being plastic cards used for financial transactions, credit cards and ATM cards operate very differently. Credit cards have disadvantages even if they provide benefits, rewards, and the opportunity to establish credit. If payments are not properly managed, high interest rates on outstanding amounts might result in substantial debt. Financial hardship can also result from excessive expenditure brought on by the ease of obtaining credit.
(Note: Using a credit card carries its own set of risks.)
