I'm 18, PLEASE HELP What's the difference between a cheque card and a Credit card?

Question

I opened a bank account and they asked me if I wanted to credit card said "sure" but now I regret it...

It said I have a "$500.00 credit limit"

and

Interest and Grace period:

Interest is calculated at an annual rate of 19.75%, the equivalent daily interest rate is 0.054110% but then it says
"You lose your interest free status if we do not receive full payment by payment due date. "

what? What does this all mean? Is it a good deal or am I being ripped of?

thanks in advance.

Answer 1

A "check card" is linked to your "checking" account.

A "credit card" is a bank lending you money that you have to pay back with interest.......

Cut up the card.......That interested is way to high... Check with your local bank, I'm sure that they offer "credit cards"

Answer 2

Credit card is good to have if you know how to make it works for you. 19.75% is very high for interest rate. Maybe find one with 4.9% or lower somewhere. On the other hand, I think you might have a debit card when you open your banking account. You use as the same as checking. It can be use as a credit card so you don't have to give out the pin number every time you use it. I like it better because someone else can look at your pin number when you punch in when you use it. In the machine will say credit or debit. It will take out from the same account. That’s why when you have a debit card you will make sure you have money in your account before you use it. If you don't have money in the bank when you use it, it will go to your credit(That $500 limit). Then you will have a lot of trouble to keep up with this card and pay off your bill. It will be a service charge and interest and payment.

Still confuse? Ok I will make an easy steps for you:
1. Go back to the bank to ask them if that card you have is a debit card.
2. Find out if that $500.00 is for overdraw. If it is then just leave it there.
3. Make sure you keep up with how much you spend and how much you put money in the bank.
4. DO NOT spend more than you have in the bank!!!
5. If you spend more than you have then it will click in to that $500 overdraw credit. Then you have the other problem to have to deal with. That $ 500 is there for an emergency if you don’t have money in the bank, and you overdraw it. You do need to pay it off as soon as you have money to pay because it will create the other problem for you to deal with later.
6. You will learn how to use all these card and what the best for you with time and experience. So!! Take your times, and don’t over doing it at first. Be careful for all these credit cards, and learn how to use them. Good luck to you.

Answer 3

A check card, also called a debit card, works like a check. It takes money directly out of your checking account. A credit card, on the other hand, is a loan by the bank that you have to pay back by the due date or else you have to pay interest on the money you borrowed.

When it says your annual rate is 19.75%, that means that if you use your credit card to buy something, you have to pay 19.75% in interest on the amount of the purchase if you don't pay the balance off by the due date (which is generally less than a month).

If you pay your bill in full each month on time, you don't have to pay the interest. Are you being ripped off? That depends. The interest rate is pretty high, but as I said, if you pay your bill each month, it doesn't matter what the interest rate is.

BTW, paying your bill on time also helps your credit score, which will help a lot when you get older and want to get a loan for a house or car.

Answer 4

a check (cheque) card and a credit card look and are used similarly to pay for purchases ... the difference is that
a check card withdraws funds that you have on deposit in the bank account tied to the card ... upside, you are spending the money that you already have
a credit card draws against a line of credit and then you are billed for the balance of your purchases ... downside, fees and interest are usually added to your monthly bill

It sounds like you have a credit card. It is not necessarily a bad deal, as long as you (1) don't spend more that you can pay each month and (2) always pay your bill on time ... if you don't, however, it will be very expensive for you. If you are not sure you can consistently do both of those things, you should probably consider closing the account.

The terms you described are typical for a new account to a borrower with no established credit record ... however ... there are better deals once you establish your credit-worthiness.

One upside to the credit card is that if you manage it properly, you will be building a credit history that will be helpful later ... bottom line ... it can be an "ok" deal for you if you manage it correctly ... but that is up to you.

Answer 5

That's an awful low credit limit. First of all I would go to your bank and ask them about there credit card plans. They will help you through the process by narrowing down the one that is right for your needs. Second the difference between a cheque card and a credit card is simple. Imagine everytime you use a cheque card your in actuality writing a paper check to that person or company. This builds up absolutely no credit what so ever. A credit card on the other hand is like borrowing money but paying it back later at a later date. Best way to start building up credit is to pay off your credit card every month, and not paying the evil interest fees.

Answer 6

you are being ripped off. But... you can make a credit card work for you. You can use their money for a month at a time and never pay any interest payments. Just pay off the card every month in a timely manner. This allows you to use their money for the month without charge.
The difference between the check card and the credit card is that with the check card they are just taking the money out of your existing checking account. With the credit card they are loaning you money.
Try using your credit card just lightly for a few months and paying in full every month on time. Then call the credit card company and ask for a higher credit amount and a discount in your interest rate. they will probably give it to you and if not just cancel the card and get another one. With 6 months of paying off the card you will be amazed at what it does to your credit rating. good luck

Answer 7

Check cards are directly linked to your bank account, and you can use your PIN when making a purchase and the $$ comes directly out of your account (debit charge)or you can sign for the purchase and it usually takes a few days to come out of your account (credit charge).
While credit cards are a seperate account that gives you so much credit that you can use (credit limit), but you have to pay it off at the end of the cycle or pay the minimum payment each month and have a percentage(APR) of the total you owe added to your balance.

As far your limit and interest rate, that sounds about normal for your age. When I got my first credit card last year I was 19, $500 limit and a 19.99% interest rate. After time you can call and ask fort he interest to come down but Because it is probably variable they can change the rate without your knowledge, so make sure you READ EACH STATEMENT, to be sure that RATES ARE THE SAME.

Answer 8

A check card is A debit card that enables the user to withdraw funds from a checking account. A credit card is a card that identifies a person as entitled to have food, merchandise, services, etc., billed on a charge account. Use a credit card for emergencies only and for items that you know that you will pay back, like gas and groceries. Use a Debit card for other reasons only. If it is a major debit card, you can also use it as a credit card as well. Do not use a credit card for like an auto repair that you can't pay back. If you use a Debit card, you can add more money to the account without having to ever pay back what you actually owe, without having to pay interest rates as high as 25%. Try a major Debit card. While you have a job, you have the option of putting money in the account on the check card. A check card requires a 4-digit PIN number that you shouldn't reveal to anyone. If you use a Credit card, you would have to sign your name on the receipt. If your signature is not on the card, make sure you have your State ID card to verify if it is your card or not. Try to sign the back of your card in order to avoid the hassle. My reccommendation is a Major Debit card.

Answer 9

A credi card you will be purchasing on credit and have to pay back at a later date. You also have to pay interest and other fees. You have to apply.

A check card is like a credit card which has a visa or master card logo. These are eaccepted where credit cards are excepted. When you use the check card the amount will draft out of your checking account, like writing a check. When the company runs your card it runs like a credit card. So if they say credit or debit you can reply credit and it will run like a credit card only it will draft out of your account. You can also use it as a debit card and withdraw money out of an ATM. With a check card there is no interest you have to pay and no fees. You pay as you go. Also the check card has the same protection as a credit card because it has a visa or master card logo. Check cards are really great and is safer than carrying cash. With my bank they pay 3 cents per transaction if I use it as a credit card.

Answer 10

Credit cards let you spend money you don't have and then make payments, in this case up to $500. Check cards take the money out of your bank account just like writing a check.