Key differences between Debit and Credit Cards

Although you may not be able to tell the difference between debit and credit cards just by looking at them, they work in very different ways.

Debit cards explained

When you use a debit card, the amount you spend is automatically taken out of your current account. This means that you need to have enough funds in your account (or an overdraft) to cover purchases you make with your debit card. If you don’t have enough money or an overdraft amount, you may not be able to complete your purchase. You can spend money on your debit card in shops and online, and you can use it to withdraw money from an ATM.

Credit cards explained

One of the benefits of using a credit card is that when you buy something, you don’t need to have the funds immediately available to cover it. This is because, unlike a debit card, a credit card is not connected to your current account. Your credit card is a separate account from which you can make purchases (or withdraw cash) up to a maximum amount (your credit limit) notified to you when you take out a card and pay for them later.

When you open a credit card account, you will be made aware of when your monthly repayment dates fall due. You can choose how much you want to repay on each repayment date, provided that you must pay back at least the minimum payment or you will incur default fees. If you choose not pay back the amount you owe in full by the repayment date, you will need to pay interest on the amount you do not pay. Therefore it is advisable to pay as much as you can afford each month to reduce interest charges.

Remember that with aqua you have:

If you decide that applying for a credit card is the right financial decision for you, choose from our range of different credit cards

Representative 35.9% APR variable on the aqua classic card.