Credit Card Debit Card Which Better?

Most money transactions are done electronically,

Most money transactions are done electronically,

People are offered to do all these transactions with credit or debit cards. However, the majority of the public is still not fully aware of the difference between these two payment cards and what opportunities each of them offers. An explanation over at

It may seem that there is no big difference between a credit card and a debit card, but in reality there is a very significant difference between the two. A debit card is a payment card that can be used to pay for purchases in stores, for example, to pay for bills on the Internet. A debit card can perform the same basic functions as a credit card – cashless payments in shops, on the internet, as well as cash withdrawals and cash deposits at ATMs. However, the main feature of this payment card is that a person can only pay with the amount of money in the bank account linked to the debit card. Once all the money in this checking account has been spent, it is no longer possible to buy anything with the debit card. In other words, a person can only spend money in the bank account he / she owns.

Conversely, a credit card can be used even if the money on the person’s account is fully spent – the balance of the account is 0. When concluding a credit card agreement, a person agrees with the bank that a credit limit is also set for this payment card. It works just like a cash loan – in a situation where one’s own money is spent, one can continue shopping, but that money will already be a credit that the credit card holder borrows from the bank. Of course, the loan amount must then also be repaid. Similarly, the loan is subject to interest, which is payable on the principal of the additional loan. However, most banks offer the option to repay the loan within 30 days, but do not charge interest on it. If the money is not fully refunded within one month, the bank will also calculate the amount of interest due.

Other advantages to a credit card,

Other advantages to a credit card,

for example, it can also be used when the card itself is not with you. A person can name the card number and the relevant details for billing purposes. Credit card allows you to book hotels, airline tickets. A credit card is a more reliable form of payment abroad – often a debit card is not enough to make a variety of payments or reservations abroad. However, over time, debit cards are modeled internationally so that they can be used in a similar way to credit cards. There are various discount programs available on both debit and credit cards – you can buy cheaper concert or theater tickets.

It is impossible to say that a credit card is better than a debit card because each person uses their payment card for different purposes. Those people who frequently travel abroad or just travel a lot should definitely buy a credit card that can help them settle abroad. As a result, special business credit cards are offered to various companies to give them privileges on such business trips. However, if a person wants to buy a credit card, it should be borne in mind that they also have to make annual payments. The more prestigious and better your credit card, the more expensive you have to pay each year. As a result, those people who only need a payment card to shop at a store, make bill payments, or make purchases over the Internet do not necessarily need a credit card. These features are also offered by a debit card, which is relatively cheaper than a credit card.

When choosing between a credit card and a debit card, everyone should understand what the card will do – if you need to go abroad on a regular basis, it is better to buy a credit card. If you just need to withdraw money from your account – then a debit card is enough. In addition, if a person has a credit card, they may inadvertently overdraw their funds. Because there is a credit limit on the credit card, it is easier for a person to spend money. However, if you use a debit card, you can never be overpaid.

When choosing between the two cards, you need to find out what benefits each one can bring. Each bank also has several types of payment cards, which definitely need to be compared and researched which one is most appropriate and beneficial for people. There are also different levels of credit cards that provide different privileges. Of course, this also changes the cost of using your credit card.

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Reasons for having a bad credit history

Therefore, we prepared a list of the most frequently reported reasons, which influenced our credit history and influenced its negative assessment.

No timely payment

No timely payment

The main reason why our credit history is getting a negative rating is any delay in paying off your liabilities. There is nothing worse for our creditworthiness than late payment of loans and other financial products . 

BIK himself confirmed the information that it is the emergence of arrears and delays in repayment of all financial liabilities that is the factor that most strongly affects our credit history. 

The timeliness of repayment of liabilities is the most important parameter for calculating banking scoring , through the prism of which all analysts consider loan applications. So if we receive a negative credit decision, there is a good chance that the reason for this was the old delays in repayment.

Difficult contact with the Consumer

Difficult contact with the Consumer

Even the most responsible clients of banks sometimes have problems with timely repayment of debt. So if we find ourselves in a difficult financial situation, the first thing we should do is contact the bank immediately . 

To avoid serious consequences of our delay in repayment, in most cases you only need to call your lender, explain the situation to him and, if necessary, document the reasons for it – for example, terminate dismissal or send confirmation of expensive treatment. 

When showing the initiative, we will certainly be able to negotiate a favorable agreement with the bank (eg holiday suspension of installments). However, if we do not only contact the lender, but also sell his calls or letters, we will quickly earn a negative consumer opinion .

Exceeding credit limits

Exceeding credit limits

Our credit history is also affected by the fact that we have exceeded the credit lines granted to us by banks (debits on the savings and settlement account or credit cards).

That is why, if we decide to open a debit or make a credit card, we should use these products in a wise and thoughtful way . 

It is not true that if we have a debit granted, we can use it at will without consequences. The degree of utilization of the available limits affects our banking scoring . There is no problem if we use the available limit once every few months, but if the situation is repeated constantly, the bank will decide that we can not deal with finances and give us a bad opinion .

Falling into the spiral of debt

Falling into the spiral of debt

The negative assessment of our creditworthiness is significant, if not primarily influenced by the loss of control over our finances and multi-level indebtedness resulting in numerous delays in repayment . 

People who fall into a spiral of debt usually decide to take out new loans, not coping with the repayment of their original obligations. Secondly, borrowed money is trying to regulate current fees, but the trail after all the loans taken is left to BIK. 

As a result of multi-stage borrowing of cash, Consumer debt is not only diminishing, but also growing. Subsequent loans generate further, even higher interest rates, and even if we manage to get out of this spiral of debt, the banks will know that once we have lost our sense and control over the money, it can happen again . Hence the negative assessment of our credit history.


credit problem

The last point, which – although many seem to be unobvious – strongly affects the negative credit rating of our person, is the lack of any credit history. 

A zero credit history is a negative credit history . If you do not show information about your previous cooperation with the bank and the actions taken, and so generally speaking – the credit history, banks will not know what they can expect from you. 

Credit analysts debating the approval of your loan application will not have anything to resist in their analysis and will do the safest thing – they will give a negative credit decision. In order to count on a positive consideration of the application, you must be known at BIK and have liabilities settled or still paid .

Categories: Investment

Benefits Of Credit Cards.

Credit cards in Latvia are not as widespread as in other parts of the world,

Credit cards in Latvia are not as widespread as in other parts of the world,

Banks and private credit institutions are showing people that credit cards can be a very good financial tool in many different situations. And that’s why I’ll give you a few reasons why everyone should consider using a credit card today: More information at

Reasons why everyone using a credit card

Reasons why everyone using a credit card

  • Bonuses – One of the best conditions for credit cards is that when you buy these cards you can get many different bonuses that you will get for using the card. These bonuses take many forms ranging from percentage refunds to airport ticket discounts and other similar offers. But with these cards that offer these bonuses, be careful, as these cards usually have a much higher percentage of credit and can therefore quickly accumulate a large principal amount.
  • No Overdraft Interest – Borrowing money with a credit card, if it is repaid within the first 30 days, you will not have to pay interest on that loan. This means that a customer who has a credit card can get an interest-free loan every month, but you have to pay that money back within 30 days, otherwise your credit institution will start to charge interest on a monthly basis.
  • Security – If you have cash in your wallet but stolen it or you lose it, you will definitely not recover it, but if you have a credit card in your wallet, you can call the bank and claim it as soon as you know that your card has been stolen. Even when someone starts using your credit card, the bank usually has a limit of over 50 USD you will not lose anyway because the rest of the money is insured. And even if you have a debit card, the bank won’t protect you like you do when you have a credit card.
  • Online Shopping – Nowadays, most goods and services are available for purchase online and online orders require either a virtual bank account or a credit card that can be entered. Therefore, when shopping online, it is usually possible to pay with a credit card by entering its details and cardholder details.
  • Plasma – And the last advantage is that a credit card can do a lot of different things, from gluing films and slicing different products to opening doors and other interesting things. The plastic size of a credit card is already quite common, and all wallets are made for that size, and you can find many different applications for these cards by searching the Internet.

I hope you will now think and choose a credit card at least as a cushion and, if not a credit card, at least a debit card that is nowadays almost every citizen.

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Free Fast Internet Credits

Fast internet loans free of charge

Fast internet loans free of charge 

Beneficial and useful if you need a cash loan of up to 200 lats and if you can return it to the lender within one calendar month to the last cent. Repay as much as you borrow – a phrase that describes the Internet or fast credit that new customers are eligible for – only when they first borrow.

How to get this loan – fast internet loan? From your home or any other location where you have internet access, choose one of these to meet leading lenders. Choose the credit company that suits your needs – register on the website and apply for the loan , specifying the amount and repayment period.

Compare the best instant loans here

Receiving Internet Credits:

1) Familiarize yourself with the offer and choose the one that suits you best;

2) Register on the company website – still required – from your bank account to transfer 1 santim to the lender;

3) Apply for a loan;

4) Get it in your bank account!

Fast credit is free for up to 30 days – you can pay it back in shorter time or later if you extend your credit early. The repayment term can only be extended for a fee – the amount of your loan payment will depend on the amount and number of days it will be needed.

Fast Internet Loans for Free – Insights into the Best Fast Loans – Choose yours!

Fast Internet Loans for Free - Insights into the Best Fast Loans - Choose yours!

OPEN CREDIT Instant Credit is issued daily from 9am to 6pm!

  • Quick loans – only for the first time free – up to 200 lats!
  • To borrow, you must be over 20 – borrow if you know you can repay the loan;
  • Apply in a convenient place and time, search the registration form on the website

JOKO CREDIT Instant Credit is available on the Internet from 8am to 8pm on weekdays, from 9am to 9pm on weekends!

  • Fast Internet Loans Free of charge – up to 150 lats for the first time!
  • Get a loan from JOKO Credit if you are over 20 – if you can “pay off” your debt;
  • Apply for the loan of the required amount of money easily and easily

VIA SMS Fast Internet Credit is issued on weekdays from 8:00 to 22:00, on weekends from 10:00 to 20:00!

  • Fast internet loans for free – only the first time you can borrow up to 150 lats!
  • To qualify for a cash loan, you must be over the age of 20 with appropriate repayment options;
  • Register and apply for instant credit from any location on our website

Merratu instant credit on the Internet is issued on weekdays from 8:00 to 22:00, on weekends from 9:00 to 18:00!

  • Quick cash loans for free – up to 100 lats for the first time!
  • Merratu will grant the loan if you are over 21 – if your repayment options are appropriate;
  • Get a good cash loan – only after successful registration on the website

Fast internet loans free of charge – the opportunity to borrow free of charge for any resident of Latvia who is not less than 20 and not more than 75 years of age . In any case, it should always be remembered that fast credit is only a short-term solution and should only be chosen if it is expected to be repaid within the next few days.

Need money? Do you know that in the near future your income will provide an opportunity to repay this loan? Borrow conveniently and simply – on the Internet, without even having to leave your computer. Before you opt for one of the quick loans – read the offer, find out what the requirements are for the particular lender and what the credit company offers.

Miska offers lenders licensed to provide credit services in one place, in a credit comparison chart. Check out what’s new in fast credit – check out the latest deals from top lenders. Borrow wisely – with responsibility!

Categories: Investment