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Credit cards are a line of credit that you are able to use at your disposal. You have to pay a pre-specified amount of interest on whatever you spend, which can at times be very costly if you're not careful with your spending and repayments.
Debit cards are bank cards that have credit card facilities (i.e. you can use them to make any kind of credit card purchase such as in a retail store, on the net, over the phone etc), but you are using your own money that comes out of a normal bank expense account, and therefore do not have to pay any interest. As soon as your money runs out then you can't use the credit card until you get more money in that account.
Thu Dec 10, 2009 1:17 am
littleroc02us Moderator
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You missed one that is very important. The bank card is very useful. I belong to a credit union and have a visa Bank card, which gives me zero liability in case of fraud and it restricts me to only spend what I have in my bank account. A debit card is similar except you have to enter a pin number. A credit card is borrowed money that you don't have. The trouble is that if you lend money and you cannot pay it back you will have trouble. Also, credit cards don't exactly help those you have trouble with over spending.
Risk comes from not knowing what you're doing. (Warren Buffet)
Thu Dec 10, 2009 7:48 pm
iwillguide Senior Member
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hi
its easy to differentiate between debit card and credit card
debit card-its service that you able to withdraw money that you already have in your bank account.we can purchase things from stores using these card but if you dont have balance then you cant purchase
credit card: its a service same as above debit card but here you can purchase things even if you dont have any money in your account with a limit based on you monthly income from your job
Better to use a debit card compare than credit card .Debit card can only be used when there is money in the account anda.Credit card will teach you owe and can make you bakrupt.
Sat Dec 12, 2009 7:10 am
coaster Senior Advisor
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quote:Originally posted by muaz alwi Credit card .... can make you bakrupt.
A credit card is harmless.
On the other hand......the person using it isn't.
~Tim~
Sat Dec 12, 2009 7:20 am
Scrutnizer Member
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The problem with a debit card is they don't have a guarantee that they'll get their money if you don't show up for your reservation -- you know how hotels have that 24-hour cancellation fee? If you have no money in your account, a debit card is useless. However, a credit card will be billed, even if you're over your limit. Rental car agencies do the same thing, but they have a different reason -- people were renting cars with useless debit cards (no money in the account) and taking them to chop-shops for money. Since there was no money in the debit card account, they had no way to recover their losses.
Mon Jan 04, 2010 10:10 am
Sime Senior Member
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coaster's right in saying the user of the card is the dangerous element of the whole scenario.
However, one can never tell the future and so getting into debt of any kind is always a huge risk factor.
I never touch credit cards or ever borrow at all - not even a fiver off a mate.
I stay well clear of borrowing.
But heh, obviously things like mortgages etc have their place.
I'm just saying you can never be sure what's going to happen a couple of months down the line and if you are unable to pay back the debt it could be very detrimental to your future.
Not all countries can afford... a lavish monarchy.
Mon Jan 04, 2010 3:27 pm
namratasnv Preferred Member
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quote:Originally posted by Scrutnizer The problem with a debit card is they don't have a guarantee that they'll get their money if you don't show up for your reservation -- you know how hotels have that 24-hour cancellation fee? If you have no money in your account, a debit card is useless. However, a credit card will be billed, even if you're over your limit. Rental car agencies do the same thing, but they have a different reason -- people were renting cars with useless debit cards (no money in the account) and taking them to chop-shops for money. Since there was no money in the debit card account, they had no way to recover their losses.
Hi,
I am totallyl agree with your point and I do think the same as, credit cards are much easier for us to use globally with respect to debit cards.
I am using american express and it is providing me very good facilities.
Credit cards only require a signature without ID. Debit cards require your pin number for identification purposes and takes a moment longer to process because of it. Also businesses are charged a fee for credit and not debit. Although debit is a little longer process, most businesses will pick it when you tell them it doesn't matter because of the fee consumers are not aware of.
Don't forget about a Bank Card. I use a Visa Bank Card from my Credit Union. You don't have to enter a pin number, it is protected by Zero Liability against fraud, and it comes right out of your bank account.
Risk comes from not knowing what you're doing. (Warren Buffet)
