what are the differences between debit, credit and charge cards?? state their advantages and disavantages plz.

Answer 1

Debit Cards: Linked to your bank account; Adv - No interest; easy to track spending; Disadv-potential impact to checking account in case of fraud

Credit Cards: Revolving credit with interest charges. You can pay minimum amounts towards the balance. Adv: Easy credit, low payments; Disadv: High interest rates, extended payments

Charge Cards: Monthly loan, usually paid in full at the end of the month; disadv: can't usually extend payments; Adv - No interest.

Answer 2

A debit card is through a bank and tied to a checking account at a bank. There has to be money in the account to use the card. When the card is used the money comes out of the checking acount just as if you were writing a check.
A credit card is not tied to your bank account. You are given a spending limit and can spend up to that amount. You have to make a payment on credit cards. to break it down you have to already have the money in an account to use a debit card, and you have to pay back what you spend with a credit card. also when you use a credit card you have to pay interest on your balance of what you spend until you pay it off. A debit card there is no interest. they're both good, but two totally different uses, i have both!! :+)

Answer 3

Credit and charge cards are the same thing~the bank that issues the card gives you a certain line of credit and you can purchase up to that amount~the problem being that there are interest rates that will raise your balance if you don't pay off the full balance each month. A debit card is issued through your bank where you hold a checking account, and there are no interest fees.

Answer 4

A debit card charges you for the privlege of using your own money. If you lose it, you can be out the entire balance of your accound. A credit card let's you use the bank's money and a good card is free if you pay the total balance each month. If you don't, they'll have you by the balls for a very high interest charge on the unpaid balance. Charge cards are usually issued by particular stores or institutions. They're like credit cards, but usable only at a particular place.

Answer 5

Debit cards- withdrawal cash directly from you checking or savings account they are good because they usually don't charge interest only small monthly fees, however, they are limited by the balance in your accounts.
Charge Cards- similar to a credit card except you usually "prepay" them. Good you convenience, but it sucks paying interest on money you aren't really borrowing.
Credit Cards- A convenient way of borrowing money, they are often needed to rent cars hotel rooms etc. They are VERY high interest (usually between 18-25%) if you carry a balance and don't pay it off right away.

Answer 6

Debit: Automatically comes out of your checking account. You won't be able to put a stop payment on it automatically, and if you do, your bank will probably charge you a fee (i've never done it with mine as i've never had a problem yet, but you never know...knocking on wood) Advantage: paying your bills online using your checking account/debit card. I love doing this, puts my mind at ease.

Credit Cards: Usually charge some kind of interest fee if you are late in paying them back

Charge cards: Usually like a department store card, gas card, etc.

Answer 7

Debit card ,comes automatic out of your checking account .
instead of handing cash ,you hand the debit card ,and it comes out from your bank ,and no interest rate's.