Debit card vs. Credit card: How to choose a suitable card type for yourself?

Debit cards and credit cards are some of the tools that are irreplaceable in the modern world. However, not everyone knows how to pick the right card type for themselves.
To help you make a suitable decision for yourself, below are some important factors you should consider before applying for any bank card.


Before being able to choose a suitable card type for yourself, you need to clearly understand the concept of debit cards and credit cards, as well as the specific functions and benefits of each card type.

Debit cards

A debit card is linked to your bank account. As your debit card is linked to your bank account, you need to deposit Money into your account to be able to use your debit card. You are only allowed to use your debit card within the available balance in your bank account. Debit cards can act as a replacement to physical cash as they allow you to pay via POS swipes, settle online payments, etc.

Credit cards

With a credit card, you can use the approved line of credit first and pay it back to your bank later. Depending on several factors such as your financial history, credibility, credit rating, etc., you will be given an appropriate credit limit on your credit card. A credit cardholder is entitled to use their credit limit and pay it back to the bank at the agreed time schedule.
In contrast with having to deposit money into your account balance to be able to use debit cards, the amount of money you can use with your credit card is the approved credit limit you get from your bank.


Choosing a type of card that fits your financial capability and spending habits helps to manage your financial situation smarter and easier.

1. Benefits of each card type

As each card type would have its own set of strengths and limitations, you need to carefully consider both before making a decision on a suitable card type.
The common strengths and benefits that both card types can bring to your life include:
– The safety of not having to carry large amounts of cash around
– Help to pay for things quickly and conveniently, even with small amounts
When it comes to debit cards, this card type will help you to be in control of your expenses as your expenses are paid for by your available account balance. However, as the amount of money you can use is your account balance, sometimes you can also find yourself in a passive position. On the other hand, credit cards will put you in more of a proactive and comfortable position when it comes to spending as you do not have to rely on your account balance. However, this freedom in spending can also make you lose control and lead to situations where you might not be able to afford the repayment for your credit limit.

2. Application procedures and financial capability

Each card type will have different application procedures and criteria for users. While the application procedures for debit cards are known to be simple and fast as you are only required to provide your personal ID or passport and valid visa, credit cards come with more complicated procedures as your approved credit limit depends on your credibility.
Also, you need to consider your income stability to be able to choose a suitable card type. With debit cards, you can use up to all of your income as long as it is deposited in your account without having to worry about interest or debt. With credit cards, you need to carefully evaluate your capability to pay for your credit limit, as well as fees associated with credit cards such as interest, annual fee, etc. If you do not have a stable monthly income, choosing a debit card will be more suitable for you as you would be less tempted to fall into debt.

3. Card usage needs and spending habits

To choose a suitable card type, it is also critical to consider your card usage needs and spending habits. If you are the type of people who wants the convenience of not having to depend on physical cash but do not want to have any outstanding debt, debit cards would be more suitable for you. If you are the type of person with a stable monthly income who likes travelling, shopping and usually has unexpected plans coming up during the month, credit cards can be a powerful enabler.  
The above factors are a few things that you should consider before applying for a bank card, whether it is a debit card or a credit card. You can also find out more about application procedures and outstanding features of  Timo Debit Card and Timo Mastercard if you are planning to open a bank card. While Timo Debit Card can be applied for within 2 minutes, Timo Mastercard can be applied for through different qualification criteria.