whats the difference between a credit card and a debit card?

Answer 1

Debit cards, the money comes directly from from your bank account. If you dont have enough money in your account you can't buy what you want with it.

Credit cards, the money comes from your credit limit, you then choose to pay off the debt you make to the credit card company at the end of the month either in full or partial (in which case you pay interest on the amount)

Answer 2

Debit card, the money comes straight out of your checking account. It is the money that you already have. A credit card is basically a loan that you will have to pay back to the company with interest included. And the bills can REALLY build up!! Good thing about credit cards however, is if you use it for small amounts here and there and pay everything back on time you will build up your credit.

Answer 3

credit cards are money that you don't already have and you must pay back. kind of like a loan. Debit cards take the money out of your checking account however. a bank card can act like a credit or debit card but it still takes the money right from your checking account. If you choose to use it as a debit card they may charge you foriegn atm charges if you choose to use it as a credit card there is no foreign atm charge and the money still comes out of your account. (you can't spend more than you have in the account it's just an easier form of being able to spend what you have.)

Answer 4

A debit card is linked to your bank account and it doesn't let you spend money that isn't in the account. A credit card lets you spend money you don't have. Debit doesn't charge interest, credit does.
And a credit purchase usually needs your sigature for authorization, but a debit purchase usually requires your PIN.
If your PIN is secret, a debit card is more secure against fraud than a credit card, but ususally "purchase protection" is only available on credit card purchases.
Car rentals and hotel incidental charges need a credit card with a high limit in case you trash the car or room, but I like to use my debit card for ordinary shopping- no surcharge.

Answer 5

a debit card is attached to your checking account, so all the money spent on the card comes right out of your bank account (like a check, the card is just for convenience). A credit card uses borrowed money and you get a bill at the end of the month to pay back all the borrowed money you spent on the credit card.

Answer 6

Debit card = using money you HAVE
credit card = using money you DON'T HAVE

to break it down... a Debit Card is like using a check, only it gets processed right then and there...

Credit cards are basically money that you borrow (your credit limit) that you have to pay back eventually... It allows you to make large purchases without having the actual money in your bank account. Also they charge you interest on top of what you have to pay back (thats' how they make their money). So for like a $100 dollar purchase you made, and are going to pay back each month $25 of it, and your interest rate is 20%, then your going to be paying $120 dollars ($20 more then what you paid for the item)

Answer 7

All of the above answers are correct to certain extent.

But, a bank card can operate as both a debit and credit card. This card looks like an ATM card with a MasterCard or Visa logo on it.

Have you ever been asked "debit or credit?" after running your card through at a checkstand? It took me awhile to figure out the difference.

If you respond "debit" the charge is taken straight out of your bank acct. if you have sufficient monies in the acct to cover the purchase.

"Credit" will allow you to use a lender to cover the purchase IF you don't have enough money in your acct to cover the purchase. But, this credit has interest and fees involved if you don't have enough money in the acct.

Took me awhile to figure this out. My bank charges $2 for each debit transaction. I learned to use my bank card as a credit card and always keep enough money in the acct to cover credit charges.

Save money at the checkstand. If you know you have enough money in your bank acct, run it through on credit. That way MC or Visa pays the fees, not you.

Answer 8

Debit card is a direct debit (Minus) to you checking or saving acccount.. A Credit Card is a line of credit that you pay in monthly installments.

Answer 9

Use of a credit card is borrowing money, with interest. A debit card takes money that you already have directly out of your bank account.

Answer 10

With a Debit card, You can only use as much money as You have in your checking account. With a credit card, you can spend, spend, spend, until your credit limit is maxed, and therefore ruining your life forever.