Financial Blog

Electronic payment cards have redefined the way we spend. Aside from faster transactions made with just a swipe, the rewards and exclusive deals we get from them are now staples in any cashless transaction. Add that to the advent of online shopping, electronic payments are becoming the norm, if not the most practical way to spend.

Here in the Philippines, there are three main types of cards to choose from—credit, debit, and prepaid. Knowing which one’s the best for your needs and your lifestyle is key to getting the most out them. Here’s a simple breakdown:

Debit cards are the most straightforward of the three. Using a debit card to pay for a transaction simply deducts the money directly from your account after your purchase. On the other hand, credit cards essentially let you borrow money up to a certain amount (your credit limit) from the card issuer to complete your purchase. Credit cards also has the added benefit of installment payments, that is, spreading payments to months or even years, not to mention the bevy of deals and discounts to partner merchants. Lastly, prepaid cards are not linked to any bank account and need to be reloaded once the balance is used up.

Read more: The 5 Easiest Ways to Improve Your Credit Score

Here’s a more detailed look:

Keep in mind that each card has its advantages and disadvantages. Regardless of which card you choose, make sure to review its terms and conditions. After all, you might be missing out on exlusive promos and rewards.