I want to buy something for 400 dollars I only have deposited 100 dollars in the bank, if I made that purchase and I only got $100 in the bank, could I still make that purchase? They would send me a bill? Or I'm unable to make the purchase because I don't have enough funds deposited at my bank. Sorry but I'm just a NOOB. I tried to put this in as much detail as I can.
2007-03-26 19:55:44 · 8 answers · asked by 0300 1 in Business & Finance ➔ Credit
well 1st you need to know the difference, that is that you have a debit card, which works as credit at most places- (if you have to deposit money to use money it is either a debit or a secured credit card) Either way a debit or secured card you do need the funds at most banks to use the money!
If indeed it is a credit card be warned that you better have the money to pay for it when you get the bill- check out your interest rate so you will have an idea of what they might be charging you for using their money! You don't want to end up in debt like most people.
The best way to use a credit card is if you know you will have the funds to pay for the purchase in a little less than a month of the purchase - it will also help build your credit so you will someday be able to buy bigger and better things, but still pay for them without going bankrupt!!!!
2007-03-26 20:01:53 · answer #1 · answered by CRAZYGIRL 4 · 0⤊ 1⤋
You may be confusing a credit card with a debit card. A "debit card" does take money directly from your bank account. You can only spend what you have. It's like writing a check. You will get fined if you try to spend more than you have.
If what you have is a credit card, the amount you can charge on your credit card doesn't have anything to do with what you have in the bank... unless you got the kind of credit card that you have to "cover" with a deposit. That's called a "secured" credit card. The only reason anyone EVER uses that kind is that they have a terrible credit record, so that no normal credit card will give them credit. These people need to gradually re-establish their reliability. If you have this kind, and you didn't realize this, get rid of it. The interest and fees are probably outrageous. It's a terrible rip-off.
On the other hand, if it's a normal credit card, the amount you can charge will be stated on the statement or paperwork. It's called the "credit limit". Don't go over this, ever, or you'll not only get charged nasty fees, but they'll raise the interest (%) that they charge you, too. Your "balance" is the amount you have charged on it already and that you have to pay back. You can pay the minimum, but it will cost you quite a bit in interest. The best thing to do is to use the card, but pay it off entirely each month. This way your credit rating will keep getting better, and your credit limit will keep getting higher.
2007-03-26 20:22:28 · answer #2 · answered by galaxiquestar 4 · 0⤊ 1⤋
Umm.. first of all you do not need the TV... second, if it is a debit/credit card it can work both ways, and they will ask you at the counter.
Debit cards take the money striaght out of your bank like a check. Credit cards rack up a bill to your limit and usually over till and they send you a bill monthly letting you know your current purchases and your remaining balance and you can make payments.
Since you sound like you are new to the whole credit game let me warn you. Debt is worse than AIDS in America... everyone has it... the average person owes at least 6.5k in credit card debt. It is addicting cause it lets you have stuff now that you really can't afford.
Credit card companies are scumbags. The provide a useful service if you use it correctly, but if everyone used it the way they should the companies would go out of business. Rack up a bill, and at the end of the month pay the whole thing. If you do this then it is totally free and you never get charged interst or late fees. If everyone did this then credit cards would not exist.
If this is a secured card, meaning that since you do not have a lot of credit to your name they let you have a credit card but you have to put money in the bank to back up your purchases (actually a good way to build credit) the problem is that they will let you go over your limit, then they will take the 100, charge you overdraft on your account usually 30, then charge you over limit charges on your card, anywhere from 25-50 dollars, then they will charge you interest on the purchase till it is paid. See how they get you. They offer you more credit than you can handle. If you don't have the money to pay for it in cash then you should not be buying it.
If you really want that TV, save up your money till you have enough to just get it.
2007-03-26 20:11:03 · answer #3 · answered by blameless7 2 · 0⤊ 2⤋
Is this a credit card or a debit card? A debit card is one which takes the funds directly from your savings or checking account and you never get a bill, but rather a bank statement which would show what was already paid.
A credit card is one where you make purchases and at the end of the month you are sent a bill and are given 25 days to pay the bill, and a minimum payment required. If you don't make payment in full, you will be charged a helfty interest rate.
2007-03-26 20:02:55 · answer #4 · answered by ........ 5 · 0⤊ 1⤋
It depends on the kind of credit card you have. If you have a "secured" credit card you can only purchase as much as you put into the account. If the credit card was not issued by your bank then it has nothing to do with how much you have in the bank, it's a separate company; you will be billed a minimum amount (like 20 dollars) a month plus interest until you pay it off.
2007-03-26 20:04:44 · answer #5 · answered by strawberry 4 · 0⤊ 1⤋
with a credit card, you can buy as much as you want without any money... that's where it's dangerous... if you can't pay off the credit card by the time you are supposed to you will be charged even more.. so in the long run you may end up paying a lot more for stuff then they cost you. If you know you will DEFINITELY have a spare $400 by the time you need to pay off your credit card ... then you can get this $400 thing that you want... otherwise, it's really not a good idea!
2007-03-26 20:05:04 · answer #6 · answered by Random one 4 · 0⤊ 2⤋
Yeah sure,your financial institution will pick up the the tab for you,ha ha.Just remember to pay them back lol.Welcome to the world of debt my friend.
2007-03-26 20:02:16 · answer #7 · answered by Eat My Shorts 3 · 0⤊ 2⤋
u need to have all the money for u to make that purchase..
2007-03-27 05:31:39 · answer #8 · answered by shorty21 5 · 0⤊ 1⤋