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Credit cards and debit cards can be mistaken to be the same just at a glance. They can be likened to identical twins though born from the same mother, they exhibit different characters. You would hardly notice any difference between both cards in their appearance. They are both plastic cards, both have 16 digits card numbers, EMV chips, expiration dates, and personal identification number (PIN) codes. Despite these similarities, they are not the same.

What is a credit card?

credit card is a small plastic card issued by financial institutions or lending organizations like CredPal. CredPal funds the card with money that you can use for small-ticket purchases and everyday needs. Then on your repayment date, you pay back what you have spent on your credit card with a small interest according to the subscription plan you paid for.

Facts About CredPal Credit Card.

  • The financial organization decides your credit limit based on your income, credit history, and other factors.
  • You pay back with an interest.
  • Your repayment date is set around the day you receive your salary.
  • You cannot spread repayment, you pay back all you have spent at once on your repayment date.
  • Your credit history is affected when you do not make timely repayment.

What is a debit card?

debit card is a payment card that allows you to make payments directly from your bank account. The account is not funded by any financial organization, the account is funded by you. This is the direct opposite of what a credit card is and the only similarity is that a debit card is also issued by a financial organization.

Facts about debit cards

  • You won’t pay interest on your purchases.
  • You can’t make any purchase if there is no money in your bank account.
  • Your credit history will not be affected by debit card spending.

Credit cards vs debit cards

Key Differences Between Credit Cards and Debit Cards

1. Spending

Credit cards: You can make a purchase even when you do not have enough funds in your checking account

Debit cards: Spending limits depend on what is in your checking account. You cannot make any purchase if you do not have any money in your account.

2. Rewards

Credit cards: Credit cards offer cashback and discounts when you use them to make purchases.

Debit cards: Debit cards don’t offer rewards in any form except when the merchant is running sales.

3. Access to Funds

Credit cards: You only have access to the funds in your credit limit. You cannot spend beyond your credit limit.

Debit cards: You have access to only the money in your checking account.

4. Credit Score

Credit cards: One-time full repayment can increase your credit score.

Debit cards: Your purchases don’t affect your credit score.

These cards have their values and one is not inferior to the other. It is advisable to have both and also profitable to use your debit card as your credit card and credit card like your debit card. What this means is that you use your credit card to make all purchases and use it to meet your needs then use your debit card to make repayment at the end of your billing cycle.

This helps to build your credit history and opens you to rewards such as cashback and discounts.

Advantages of Building a Credit History

  1. Better chance for credit cards and loans approval
  2. You are opened to rewards such as cashback and discounts
  3. Helps increase your credit limit.

Get your credit card today with CredPal, register on, and start enjoying the benefits that come with it.

Read Also: CredPal and how they build the American express of Africa; SkillFront



In the wake of minimal access to loans, we are driving a lending ecosystem that increases the purchasing power of consumers and economic growth across Africa by offering better and easier access to consumer credit through credit cards, buy now, pay later, and loans.

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