They may look alike but credit cards are very different to debit cards.

Debit Cards allow you to spend your money that you have previously deposited with the provider.

Credit cards allow you to borrow money (up to a certain limit) from the card issuer to purchase items or withdraw cash.

This loan is interest free if the monthly credit card bill is paid on time.

Most debit cards have few or no fees whilst credit cards generally charge annual fees, over limit fees, late payment fees, monthly interest and so on.

No interest is charged on debit cards as you are not borrowing any money.

With credit cards, interest is charged on the balance at the end of the month at a high rate.

Responsible credit card usage can improve your credit rating as banks use your card usage, to assess your credit score and credit cards offer greater protection if cards are lost or stolen.

However, if you are not a disciplined spender, a debit card will protect you from borrowing money you can’t afford, on items that you probably don’t even need.