Line of credit, debit card and credit card

 Know the difference between credit card, debit card and line of credit

Do you know the differences between a line of credit, debit card and credit card?

Ferratum today gives you the answers

Credit or debit card?

There are many occasions in which we have asked this question, and it is very easy to confuse both products. What do we usually pay in establishments? What card do we use to get money at an ATM?
The differences between the two are remarkable but the lack of financial information leads, in many cases, to confusion. This confusion is also due, in part, to people using the two cards for the same purposes.
It is generally recommended to use credit cards for the most disciplined in the management of finances, while debit cards are more focused on consumption.
It is important to know the similarities and differences to know when to use one and then another. It is essential to know the characteristics of each product, then decide which one best suits our desires and needs.

Ferratum brings you the main features of both cards:

  • Debit

These cards are the most used, although we often call “credit card” any card with which we make a payment, the usual bank cards are debit cards.
These cards are used as a means of payment and are linked to a checking account. Every time we buy a product, either in a physical store or online, it is immediately charged to our bank account. If we do not have a balance in our account, the card would give an error, that is, the transaction would be rejected and our purchase could not be made.
The debit card is not intended as a means of financing but as a form of payment, is a mere instrument with which we access our account, or put another way, is a piece of plastic that transfers money from our checking account to the bank accounts of the stores where we make our purchases.
These cards allow us to make transfers and get the money we need at any ATM. In short, they are a means of payment that allows us to have the capital that we have saved in our bank account.
Banking entities do not usually charge issuance and maintenance expenses for their debit cards and cash withdrawals fees at ATMs are not very high.

  • General characteristics of debit cards

  1. With debit cards, it is possible to withdraw cash at ATMs and at bank branches.
  2. These cards are valid to make purchases in stores. When carrying out this operation there is an instantaneous charge to our current account for the amount spent.
  3. It is necessary to have sufficient funds in our current account at the time we make a payment or withdraw money from the ATM (there are exceptions because some debit cards allow you to incur short-term overdrafts) The expenses will be deducted from our checking account. And this is where we find the main difference between debit and credit cards.
  4. For regular purchases (supermarket, fashion, perfumery … etc) debit cards are the best option because we do not have to pay interest of any kind since all the capital is extracted from the savings deposited in our bank account.
  5. It is essential to have a current account in the bank that has provided us with the card.
  6. Debit cards are very useful because they help us keep track of our expenses. At any time we can check our movements and the available balance of our card. This is important because it facilitates the control of debts. If we go to pay for a product and we do not have enough money, the purchase does not take place.
  7. The customer agrees to a daily spending limit with the bank, for security reasons. In this way, even if sufficient funds are available, the operation cannot be carried out if this limit is exceeded.
  8. Debit cards have less insurance associated with the card.
  9. Debit card commissions are cheaper than credit cards. The amount varies depending on the bank.
  10. Some banks do not impose any type of commission on debit cards.

Conoce las diferencias entre tarjeta de crédito y débito

These cards are not only a form of payment, but they are also a means of financing and perhaps this is why their mechanism of operation is much more complex than that of debit cards.
When making purchases in physical stores or online the process changes. Credit cards, unlike debit cards, allow you to make purchases without having the necessary amount in your checking account. Payments are deferred for a specific time (approximately one month). Once the estimated date has expired, the client will have the duty to settle the debt. In most cases the associated account has funded and the debt is charged directly but in the case that it does not have funds, the interest on the credit card will be activated, which can range between 12 and 20%.
Another notable difference is the commissions. Credit cards have quite higher commissions than those in debit cards.
The withdrawal of money in ATMs already means a high cost (approximately 20%). This is why it is important to know the characteristics of both cards to know which best suits our needs. In addition, these cards also have an annual emission and maintenance cost. But, undoubtedly, the positive point of these cards is the margin of payment, because if you need to make an urgent purchase and you do not have enough money with credit cards you can make the purchase.

  • General characteristics of credit cards

  1. We must think of credit cards as a means of financing and not just as a form of payment.
  2. We can make purchases without spending money instantly and, later, we can return it in different terms.
  3. It is not necessary to have funds in the current account to make purchases (as long as we do not exceed the pre-established limit).
  4. To obtain a credit card it is necessary to present a proof of income or the direct debit of a payroll or pension. Well, it is necessary for the bank to know that we will be able to face possible debts.
  5. The client must return the money used plus costs and interest.
  6. The established credit limit will appear on the card contract although it is possible to change this amount over time.
  7. Payment of the debt must be made at the beginning of the month (or the days stipulated in the contract, which will vary according to the bank)
  8. A deferment of payment can be made if the client can not cope with the debt but these postponements have an increase in interest. In addition, if the customer pays their debts on time, they may have future discounts and points that will be associated with purchases with a credit card.
  9. These cards have insurance, unlike debit cards.
  10. The main advantage is that in case of emergency or improvisation you can use this card without having money in the account

    Conoce todo lo que necesitas saber acerca de las tarjetas de crédito, débito y línea de crédito

  • Credit line

Now that we have already known the characteristics and differences of credit and debit cards, we are going to talk about another different service: credit lines.

This concept is also common that leads to confusion, many relate it to credit cards but both products present important differences.
Perhaps this service is aimed at a different public because the lines of credit are more used by companies than by individuals.
The line of credit is the authorization that a bank or financial institution grants to a company to have financing and thus be able to face payments using cash. A limit will be established in amount but this, normally, is much higher than that of credit cards. The deadlines are also more flexible.
The entities evaluate the income and expenses of the companies to jointly agree on a quantity limit and manage the payment terms.
The lines of credit are very positive in that the companies, thanks to them, can face urgent punctual payments.

They are widely used to pay payroll, suppliers, materials … etc.
It is very common for companies to have months of lower productivity and it is at this time when the line of credit is a great help.
Many entities also have credit lines available for individuals. Following the same conditions of evaluation of income for the subsequent agreement of terms and amounts.
In the case of the line of credit, the amount granted to the company, autonomous, private … etc., Will be available so that the amount needed may be withdrawn as many times as necessary, provided that the limit is not exceeded. If finally, the company did not need the money from its line of credit, it would only pay the established costs of issuance, without interest or added capital.

Haz tus pagos online con la tarjeta que mejor se adapte a tus necesidades

Have all your doubts been clarified? Do you already know how to differentiate between a credit card and a debit card? Have you found the operation of the credit line interesting?

These options can be interesting for specific expenses of high amounts.
But … And if you only need 100, 200,300 euros? In that case, we bring you the best option: online microcredits.
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Sodercan launches two new lines of aid totaling 4 million to promote business R & D and 'starp up'


Iciar Amorrortu, Eva Díaz Tezanos and Marta Domingo GOVERNMENT OF CANTABRIA

The Society for the Development of Cantabria (Sodercan) will launch next week two new aid convocation, amounting to 2 million euros each, directed one of them to support R & D projects in the business field and the other for ‘ starp up ‘and young companies.

These two new calls, already approved by the Board of Directors of this public company and that will be published next week, have been presented this Thursday at a press conference by the Vice President of Cantabria and President of Sodercan, Eva Díaz Tezanos; by the director of this company, Iciar Amorrortu, and by the general director of Universities and Research, Marta Domingo.

The new call for business R & D will finance between 25 and 80 percent of projects with budgets that should be between 50,000 and 200,000 euros and lasting between one and two years.

Through the call, it is intended to contribute to diversify the current business fabric towards new products with high added value; to increase the productivity of companies and to promote the transfer of technology from research organizations and technology centers to companies in the region.

Any active company at the time of submitting the application and which develops industrial research or experimental development projects may benefit from this call.

The aid will be used to subsidize personnel expenses, equipment, exploitation materials and also technical assistance and contractual research.

Applications may be submitted from the day following its publication on the Sodercan website until October 4 of this year.

This call is compatible with other Sodercan help lines for innovation, with the exception of existing ones for the promotion of large R & D projects and for the circular economy, as Amorrortu has pointed out.



The other call, called ‘Start Up capital Cantabria’, will provide convertible participatory loans that may be between 25,000 and 250,000 euros, depending on the stage of each business project, establishing three variants: ‘Seed’; ‘Start’ or ‘Expansion’.

With this new program, which had

With this new program, which had

the venture capital sector in Cantabria is to be strengthened by providing capital and financing to start-up or early-stage companies, since it is considered to have a “key role in promoting technologically advanced new companies” and at the time of ” revitalize “the productive fabric of the community.

It is sought that in Cantabria not miss “any entrepreneurial initiative” and “no opportunity is squandered to create wealth or employment.”

The ‘Seed’ variant is aimed at financing projects in a phase prior to mass production (research, development or design phase), in which loans of between 25,000 and 50,000 euros will be granted; the so-called “Start-up”, with contributions of between 50,001 and 150,000, is designed for those in a phase that goes from the first commercialization of the product or service until it reaches a point of equilibrium), and that of ‘Expansion’ is for those that are already in the growth phase or, even, already generating benefits.

In this case, the amounts of the loans can range from 150,001 euros to 250,000. In this modality, a takeover of shares has been established in which Sodercan will not contribute more capital than the entrepreneurial team or more than 45% of the project’s budget.

This new aid program is compatible with other Sodercan lines aimed at promoting entrepreneurship.


Díaz Tezanos explained that these two new calls come to complement other calls of Sodercan this year to help innovation and entrepreneurship development that are already underway, worth 3.3 million and 1.3 respectively, most of which are still open. Now adding these two developments, the aid in both lines will reach 8.6 million euros.

In his opinion, these new lines “reinforces” the commitment of the Government of Cantabria and Sodercan with the support of the Cantabrian business sector to make it more competitive and better positioned in the market.



Also the vice president has referred to another program: the one aimed at supporting women entrepreneurs, the so-called PAEM, which is a collaboration between Sodercan and the Santander Chamber of Commerce, co-financed by the European Social Fund.

This program aims to promote self-employment and women’s business activity, especially through business advice and guidance; support for women’s entrepreneurship processes or inform them about financing formulas.


Headquarters of banks Caixabank and Sabadell AGENCIES


Caixabank y Sabadell


The clients of the banks that are based in Catalonia are worried about the effects of a declaration of independence in their credits and deposits.

What happens to the money I have in those banks?
It is the million dollar question and the reason why many customers of CaixaBank and Sabadell are closing accounts in figures that are not being detailed by these two entities. “The leakage of deposits is taking place, although not at alarming levels,” Javier Flores, analyst at Asinver, explained 20 minutes ago.

Are my funds safe?
It depends on whether the real independence of Catalonia is carried out or not. There are two cases. One, that of the accounts opened in Catalonia of any entity, not only Catalan: a corralito decreed with independence would affect all deposits even if they are from a bank that has its headquarters in another community. BBVA, among them, would be among the most vulnerable because after buying Unnim and Catalunya Banc, the entity chaired by Francisco González owns 30% of the branches there and 21% of its credit portfolio. The other scenario is the accounts opened in other regions: these, although they are from CaixaBank and Sabadell, would be safer.


And if there is independence?
That Puigdemont goes out on the balcony and declares independence unilaterally is useless if the international community does not recognize you as a State. But, what if I got this support? “Then the banks that had their headquarters in Catalonia would risk being nationalized”, warns Flores, which precisely circumscribes the change of address of Sabadell and CaixaBank to avoid a nationalization.

Would there be a playpen?
It is the fear of many citizens and the rumor spread these days on social networks. “The corralito will necessarily be produced if the independence is formalized”, explains this analyst. “But the panic and the flight of deposits towards Andorra, France and Spain would be in the whole banking, not only the Catalan”.

And what about my mortgage if another currency is created?
The formal independence and the birth of a “Catalan crown” is still land for the fiction economy. But if it occurred, according to Flores, “it would be a luck for the indebted” because the leakage of deposits from Catalonia would force a depreciation of the new currency to recover competitiveness … and that would facilitate the return of the loan signed in euros.

But those two banks have fallen a lot in the stock market …
That is another subject. A massive withdrawal of money in Catalan banks would affect the solvency of CaixaBank, Sabadell and even the Caja de Ingenieros, based in Caspe street in Barcelona. And we already know from Popular what happens if a bank loses liquidity in jets. “The Deposit Guarantee Fund protects up to 100,000 euros of clients’ money,” Flores recalls. But of course, it only protects the funds of banks in the European Union. If Catalonia leaves the club, the Catalan bank loses the umbrella. Hence the changes of venue. The association of banking users Adicae criticized yesterday however that the “precipitate flight” of Sabadell “generates alarm”.

So, do I calm down?
“Nowadays, any depositor can be at ease in a Catalan bank, Bankia or Santander”, says Flores. Yes, a peace of mind up to the mentioned 100,000 euros deposit limit … and whenever a bankruptcy does not catch the entity with its headquarters in Catalonia and outside the shelter of the Guarantee Fund and the EU.

Why CaixaBank and Sabadell went up on the stock market this Thursday?
Exact. Investors welcomed the fact that the Sabadell moved its headquarters to Alicante and in the last half hour of the session the titles skyrocketed from a growth of 3.16% to another of 6.16%. The possibility that CaixaBank imitates it increased its share by 4.93%.

New laws on 1 August 2017: Pensioners cheer, companies moan

While the new laws on August 1, 2017 bring relief to many retirees health insurance, stricter rules apply in the future for companies and some homeowners. For example, companies must strictly separate their commercial waste and consult an expert with property owners who have a fuel oil tank. There is also a change for schools and day-care centers.
Rentner haben durch die neuen Gesetze im August 2017 Grund zur Freude
Pensioners are looking forward to an important innovation in August 2017
  • With the new laws as of 1 August 2017, stricter rules will apply that apply to both commercial and fuel oil tanks .

  • For pensioners, the changes make it easier, but some companies are likely to moan about the new regulations.
  • Due to the innovations, many seniors are looking forward to easier access to statutory health insurance for retirees.

New laws on August 1: Pensioners benefit from parenting

Many a retiree may take a breather thanks to the new laws on 1 August 2017. From now on there is a new regulation in the so-called 9th / 10th regulation for health insurance for pensioners (KVdR). In the KVdR only people are compulsorily insured, who were in the second half of their working life at least 90 percent of the time in the statutory health insurance.

Especially women who have interrupted their work in favor of raising children and meanwhile were privately insured by their spouse, have been able to fulfill this criterion so far only with difficulty. Due to a new regulation as of 1 August 2017, the insurance issue will be a bit more relaxed for many retirees. In the future, they will be credited with three years for each child on the pre-insurance period .


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Changes in August facilitate access to compulsory insurance

Prior to the changes in the KVdR, a woman who had worked for a total of 30 years had to be insured for a total of 13.5 years in the GKV in the second half of her working life (= 15 years) in order to be compulsorily insured in the KVdR , People who could not fulfill this time span had to voluntarily insure themselves either privately or in the KVdR . This has the disadvantage that legally insured persons bear the entire cash contribution of 14.6 percent plus additional contribution. In the case of compulsory insured, the pension insurance, on the other hand, covers half of the basic contribution (7.3 per cent).

Under the new legislation as of 1 August 2017, retirees will be credited with three additional years of insurance for each child and every foster or adopted child. For the example above, this means that the woman only has 10.5 years to stay legally insured. The regulation applies to both retirees and people who are already retired . If seniors want to benefit from this, they must however inform the fund itself to check the credit transfer.

Tip: In spite of the easier access to health insurance for retirees, seniors should pay a lot of attention when choosing their health insurance. Some health insurances offer them, for example, extra services such as a second medical opinion or advice at home. For retirees, it is therefore particularly important to find the right mix of price and benefits.

New laws as of August 1, 2017: Schools should promote healthy eating

In some federal states, the 2017/18 school year is almost upon us. Just in time for the launch of the new laws, the EU school program will enter into force on 1 August 2017. It aims to make it easier for kindergartens and schools to provide children with fresh fruit, vegetables and dairy products at reasonable prices, thus contributing to a healthy diet. Although there has already been the opportunity to acquire and pass on the products through various subsidy programs at low cost. But now regulates the common school program, which countries is entitled to how much money. Almost 30 million euros are earmarked for Germany each year.

Innovations in August: Stricter rules for commercial waste and heating oil tanks

For many companies that generate large volumes of commercial waste, the new legislation as of 1 August 2017 will impose stricter rules. Instead of collecting all waste together as before, they have to separate the waste directly from today . In addition, it must be documented exactly how much waste has been separated. In addition, companies must indicate whether certain wastes have not been separated.

Even with homeowners changes by the new rules in August a lot. At least for those who have a heating oil tank with more than 1,000 liters capacity. In the future, it will be mandatory to have the tank checked by an expert before commissioning . The latter must determine whether the container complies with the new ordinance on installations for handling substances hazardous to water. If the heating oil tank is already in use, it still has to be checked and possibly retrofitted.