how I am gonna be charged for those?
2006-12-22 07:56:33 · 13 answers · asked by Anonymous in Business & Finance ➔ Credit
A credit card is backed by a bank that vouches for you and charges you interest on the items you buy. Every month a percentage is added to your bill and adds up. When you make the minimum payment on that card, you are basically just paying the interest on it, and you end up paying an extra 10-18% on what you buy...Each month. A debit card is tied to your bank account, and withdrawals the funds out of you account on the spot. Your line of credit is only as good as the amount of money in your checking account.
2006-12-22 08:02:13 · answer #1 · answered by nil8_360 6 · 0⤊ 0⤋
A credit card is basically a loan from the issuing bank. They extend the line of credit to you based on your credit history, and you make monthly payments based on how much of that line you advance. A debit card is generally linked to your bank account, and allows you the freedom of making purchases with funds directly taken out of your account...think of it as a "paperless check." As far as being "charged" for them...I am not sure what you are asking. A credit card sometimes has an annual fee, and there is always an interest charge if you don't pay the balance in full at the end of the month. Some banks charge a monthly fee for a debit card, some don't.
2006-12-22 08:02:16 · answer #2 · answered by cbecker72 3 · 0⤊ 0⤋
A debit card is accepted for payment only if you have money in the bank to cover the amount,or an authorised overdraft.
You get charged interest with a credit card after an agreed interest free period.
2006-12-26 06:23:30 · answer #3 · answered by spoutz1955 2 · 0⤊ 0⤋
What is a Debit Card?
The card you use at the ATM is known as a debit card. When debit cards first appeared it was easy to tell them apart from credit cards. Debit cards didn’t have a credit card company logo on them; instead, they usually just had your bank name, your account number and your name.
Today debit cards look exactly like credit cards even carrying the same logos. Both types of cards can be swiped at the checkout counter , used to make purchases on the internet, or to pay for the fill-up at the gas pump.
When you use your debit card to make a purchase, it’s just like using cash. The account that is attached to your debit card, in most cases your checking account, is automatically debited when you use your debit card. The cost of your purchase is deducted from the funds you have in that account.
What is a Credit Card?
On the other hand, when you use your credit card to make a purchase you are using someone’s else’s money, specifically the issuer of the credit card, usually a banking institution.
In effect, you agree to pay them back the money you borrowed to make your purchase. In addition you will also pay interest on the money “loaned” to you at the rate which you agreed to when you applied for their credit card. This is known as the annual percentage rate (APR).
While the two cards might act and look alike, the levels of consumer protection that each type of card provides can be different.
2006-12-22 08:05:39 · answer #4 · answered by aleish 2 · 0⤊ 0⤋
A credit card allows you to spend more money than you have. If you have earnt £1000 and you put it in a bank account, but you have a £1000 credit limit then you can spend £2000 with your credit card. If you had a debit card and the same £1000 (and no overdraft) you could only spend that £1000.
Credit cards charge you to use your credit (because it's their money), the longer you have it outstanding the more they will charge you. You are not charged to withdraw money that is yours though - so you shouldn't ever be charged to use a debit card.
2006-12-22 07:59:50 · answer #5 · answered by Mordent 7 · 0⤊ 1⤋
With a debit card, as soon as you use it the money is taken from your account.
With a credit card, you usually have up to 30 days to pay the amount charged or you'll have to start paying interest.
2006-12-22 07:59:52 · answer #6 · answered by Anonymous · 0⤊ 0⤋
In a debit card you must have an account and each time you use it they disccount you the money from that account.
In a credit card you have a credit limit (or maybe ilimited if you have good references) and each time you use it it's like if you borrowed money from someone. Monthly you have to pay your credit card with an exact ammount!
2006-12-22 07:59:49 · answer #7 · answered by oposites2 2 · 0⤊ 0⤋
A debit card takes money directly out of your checking account. If the money's not in your account, your purchase won't go through.
A credit card literally gives you credit, and you have to pay it later, regardless of how much money you have at the time. It's only limited by your credit limit.
2006-12-22 08:00:05 · answer #8 · answered by Anonymous · 0⤊ 1⤋
debit card takes money from your own checking account. Careful of overdrafts, as this is how banks rape the public with outrageous fees.
credit card is essentially borrowing money from a bank at a high rate IF you don'r pay the balance.
2006-12-22 08:01:01 · answer #9 · answered by Anonymous · 0⤊ 0⤋
debit card- automatically withdraws from existing checking or savings account from money you already have, bank may charge annual fee
credit card- your money comes from the company that they are basically loaning to you for the month and it isnt linked to checking or savings- higher interest if you dont pay the balance, late fees, some have annual fees
2006-12-22 08:00:43 · answer #10 · answered by Anonymous · 0⤊ 0⤋