what is the difference btw a 'debit' and a 'credit' card?

Answer 1

A debit card is linked directly to your checking account. All the money is yours and is withdrawn automatically. Since it's a checking account, you can also add money to the account... You have total control of the amount of money that can be in the account.

A credit card comes from a company that 'gives' you money you HAVE to pay back within a certain time frame. Credit cards are usually issued with pre-set maximum amounts. If you are late on your payments, you will have to pay a fee - usually a percentage of what you owe. Money on your credit card is not yours.

Answer 2

Debit cards are like credit cards except the money in a debit card you put in I've never had a credit card only a debit card so can't say much more

Answer 3

Debit Card: Money is taken out of your checking account, and you do not pay interest.....however, you may pay a fee for accessing that money (ATM debit transactions)

Credit Card: Money is taken from an amount the bank is willing to extend to you, with the promise that if you do not pay it back within a certain timeframe, you'll pay interest. Credit transactions may also include added benefits, such as extended warranty, auto rental insurance, or price protection...

With many debit cards, you can still use the "credit" feature, and save the fee. Depending on the bank and card, you may also be eligible for some of the additional features, such as unauthorized purchase protection.

Answer 4

A credit card gives you credit to buy things (eg: mastercard). With a debit card however, you have to have the money in your account already. Debit cards can be either EFTPOS, that is you swipe your card at the supermarket, punch in your pin number and then leave) - Howver, some banks offer visa cards attached to your debit card, and that means you can use your debit card like a credit card - except again, you have to already have the money in your account - no credit is given.

Answer 5

With a debit card you are using the money from your checking account. With a credit card like VISA you are using their money until you pay their bill to you. If you don't pay the credit card bill for the month you used it,you will have to pay a finance charge-extra money-because you didn't pay the bill fast enough. You do better with a debit card, but some places prefer credit cards.

Answer 6

A debit card is like a check, you already have to have the funds in the bank and when you use it, it deducts the funds directly from your account. With a credit card- you get a line of credit - money that you don't already have but promise to pay back with interest in the future

Answer 7

A debit card is issued by your bank on your checking account. You can withdraw money at the ATM and use it like a credit card at stores, but funds come directly out of your checking account.

A credit card is also issued by a bank or credit company. You can also withdraw funds and make purchases with a credit card BUT you receive a monthly bill for purchases or cash advances made.

Answer 8

A debit card is like a cheque book, you have to have money in the bank to use it, if for instance you spend £30.00 the money is immediately taken from your bank balance. A credit card is exactly as it suggests, you have a cash limit on it, for instance £1,000, you can buy goods up to this value, you receive a monthly statement, if you pay the outstanding balance you are not charged interest, however, the statement will show a minimum payment that must be made, you will be charged interest on all outstanding amounts.

Answer 9

when you purchase an item with a debit card, it is a straight deduction direct from yr bank account that is linked to it.

unlike a credit card, the purchase is bought on credit and you will be billed for the purchase later. Depending on which bank the credit card belongs to, you have up to 1-2 months to make payment for the purchases made on the credit dard. If no payment is made, you will be charged interest on it the outstanding bill.

Answer 10

With a credit card every purchase you make gets charged to your account and you receive a monthly bill.
With a debit card the store is paid directly from the funds you have in your checking/savings account.