which costs more in terms of getting a card and using it.which has a higher service rate?
2006-10-12 18:43:07 · 7 answers · asked by lonelywannabe 1 in Business & Finance ➔ Credit
The major difference between a debit and credit card is that a debit card funds comes directly from your checking account and a credit card is a separate loan you have to pay back. A credit card IS a loan. You typically do not have an annual fee with a debit card. With a credit card most companies will charge a fee anywhere from $15 to $20 per year unless you have bed credit. Plus you have interest to pay back with a credit card if you are not paying the card in full each month. With a debit card if you do not have funds in your checking account you cannot use the card so no interest to pay.
2006-10-12 18:49:56 · answer #1 · answered by lady01love 4 · 2⤊ 0⤋
A DEBIT CARD...Removes money instantly from your bank account at the ATM or when you go shopping in stores. When you purchase your groceries for example you can also ask for extra cash from your bank account not only the total of the sale. It's very convenient and saves you time.
A CREDIT CARD ...Adds the total sale amount to your charge card account and you can pay it back in full or spread the payments out for months but the credit card company will add a fee at the end for this service.
Each company who offers the debit and credit cards has different rules and regulations. You can call them and have a representative explain theirs to you. Banks and credit unions offer them. Make sure these banks are backed by the government so if they have financial problems your money is safe in their account.
Best of luck!
2006-10-12 18:52:42 · answer #2 · answered by Mama Jazzy Geri 7 · 1⤊ 0⤋
With a credit card, you are borrowing money and paying interest on it. With a debit card, you are only spending money that you already have in the bank. There are small service charges but you are not paying interest because you are only spending your own money.
2006-10-12 18:47:05 · answer #3 · answered by October 7 · 0⤊ 0⤋
Credit card...unsecured loan..nothing to back it up except your word that you will pay at end of month. Debit card...you already have your own money sitting in a bank account to back up what you are purchasing (like writing a check).
2006-10-12 18:45:46 · answer #4 · answered by Just_Killing_Time 3 · 0⤊ 0⤋
Credit card is what is says...credit. With a debit card the amount is debited immediately from your bank account associated with it.
2006-10-12 18:45:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋
debit card is for see that you have money and credit card is for get money
2006-10-12 18:45:31 · answer #6 · answered by adela_hantaru 3 · 0⤊ 0⤋
one is using your money....the other is using there money
2006-10-12 18:44:19 · answer #7 · answered by USMCstingray 7 · 0⤊ 0⤋