what's the difference between credit & debit card?

Answer 1

The main difference is the way the card works and where the money comes from. Debit cards can be used as either a debit card or credit card. Credit cards can only be used as a credit card. Debit cards do not carry a line of credit. The purchases made with a debit card can not exceed the amount of money a person has in their bank account. This is the main difference between a credit and debit card.

Another major difference between credit and debit cards is the risk involved. Because they are attached to a bank account, loosing a debit card is very risky. A person does not need a pin number to use a debit card and therefore can easily drain a persons bank account, causing extreme problems.

With a credit card the only problem is proving that someone else used the card. With a debit card the persons has to figure out how to get their money back and if any checks bounced they are responsible for those as well. The legal liability is much greater with a debit card than with a credit card. Go to : http://www.credit-card-gallery.com/ and get a best credit card according your credit.

Answer 2

Difference Between Credit And Debit

Answer 3

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Answer 4

Debit cards draw from money placed in an account. It can be either a checking or savings account. Prepaid debit cards are basically just debit cards. You have to fund them in advance. Credit cards draw on a line of credit. The bank or credit card issuer basically fronts the money then you pay it back to them plus interest.
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Answer 5

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When you use a debit card they take the money out of your bank account. It's like writing a check, you are spending your own money. When you use a credit card, the bank spends its own money, and bills you at the end of the month. You can pay it off all at once, or you can just pay a minimum and borrow the money. So you can spend money you don't have, and build up a debt.

Answer 6

The main difference is that the cards work differently.Debit cards can be used as a credit or debit card

Answer 7

Debit Card - Using funds that are available in your checking account. It has 2 options to use Credit or Debit. Debit simply takes it immediately while Credit will take a couple days to retrieve the money from your account.

Credit Card - Is a certain credit that they offer you. For example you have $2000 credit limit. You may use it up to that amount but you will have to pay the minimum monthly payments which includes interest. Basically it's borrowing money. However, it is always good to have credit cards to build credit. Just use it wisely and pay the monthly payments on time.

Answer 8

Credit Card: You have a maximum credit line (how many credit dollars to the account), and you buy first, pay later. If you don't pay off your monthly balance you accrue interest and that's what gets you in the end when you start paying more because of interest.

Debit Card: You have no maximum card balance, it's as much as the money you have in your account. Charges on your debit cards are deducted immediately, it's like spending cash. You will not get a monthly statement with how much you owe, but you risk over withdrawal. Over withdraw is when you use the card to buy something that costs more money than what you have in the account. Usually there is a hefty over withdrawal charge.

Answer 9

Credit Card : Credit cards are lines of credit. When you use a credit card, the issuer puts money toward the transaction. A credit card, such as Barclaycard, is not linked to your current account and is a credit facility that enables you to buy things immediately, up to a pre-arranged limit, and pay for them at a later date.

Debit Card : Debit card use to buy something, money is deducted from your account. With a debit card, you can really only spend the money you have available to you.

Answer 10

1) A debit card is an instrument when used for purchasing, the value of purchase is directly debited to your bank account.
2) Credit card is an instrument through which you are allowed a cash credit which you can use for any transaction including cash withdrawal. But this is being a kind of a loan, you are supposed to return it with interest.