Are there different types of credit/debit cards?
For the financial consumer, it is important to realise that there are a range of credit and debit cards that are available. No one is entitled to a credit or debit card. These items are issued by a bank or other financial institution to a customer that they feel can use the item responsibly. A debit card takes money straight from the customer's bank account when they pay for an item, there is not usually a charge for personal banking customers for this service. A credit card is different, the customer purchases the items and then credit company sends the customer a monthly bill to repay, interest is added if the balance is not cleared each month.
In terms of a debit card, it is not usually the case that a bank would give this card to someone with a poor credit history, poor past personal financial management or someone who is unemployed, long term sick or in other cases. Credit and store cards are issued on the basis of the applicants credit worthiness. This involves a search into the applicant's financial background, their credit history and repayments. Some credit card companies have 'starter' cards, for people without a secure history, but who could benefit from a small credit allowance and are given the opportunity to rebuild their credit history.
The same companies control the use of debit and credit cards, with the two major providers being Visa and Mastercard. Some customers will be allowed Switch cards (now called Maestro cards), Solo or Electron cards. These cards do not allow the user to go into overdraft and so are suitable for customers who do not have the best history of financial management.
Store cards are also a form of credit card, just under a different name. These tend to have very high interest rates and only really help customers who can repay the entire balance and just want to make use of the buy now pay later opportunity.