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What's the exact difference between credit card and debit card?
#11
Hi! There is a major difference between a debit and credit card so it definitely does matter which you use based on what your unique situation is. A debit card is YOUR money on a card. It’s your saving account/ checking account and any personal money from your bank account. It’s basically cash in a card to put it simply. A credit card however, is completely different. A credit card usually has a limit to how much you spend so you can’t buyas much as you want. Also the biggest difference is that money spent on a credit card is meant to be repaid by you because it is not your money, rather you are basically borrowing money and promising to pay it later, hence the reason it has a limit. A credit card has a higher risk to fall into debt obviously. I would recommend a debit card because there is a much lower risk involved and I feel safer and better using my own personal savings and money. I don’t like knowing that I owe money. But that is just me haha. hope This helped! Smile
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#12
Thank you very so much to you guys! The information you gave are of great help to me. I have now a good understanding about the exact difference between the two cards. I also knew their importance and uses. I really understand now that when to use a credit card and a debit card. Thank you once again. God bless us all!
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#13
A credit card is issued by card issuer usually a bank and they will grant you a line of credit. By granting you a card you can now borrow money from them and use it to purchase goods or avail services. A credit card has a credit limit and interest. You have to pay for the money you owed and it has a deadline. If you failed to meet your payment period they will charge an interest. You'll have a credit score for every transaction and there might be a reward if you meet their requirements. A debit card is directly connected from your checking/bank accounts. It has no finance charges because it's directly deducted from your bank accounts. Using debit cards you can withdraw money through an ATM.
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#14
Credit card and Debit card is the same in term of portable money. But the difference of those two is, Credit card is a card use for buying stuff and then you can pay it later to the bank. It is like you loan the money to buy stuffs. While the Debit card is card you can also use to buy stuff but has its limit depend on how much money you has in that card. It is like you bank wallet that you withdraw from it to buy stuffs.
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#15
The people above have explained to you the main difference between a debit card and a credit card, but I did want to add some things. In terms of actually USING the card, they are almost no different in most circumstances. Both can be used for online purchases or at a check out.
The biggest difference I personally have found is for transactions where they put a "hold" on your funds. The petrol station near me will not accept my pre-paid debit card no matter how much money is on it, because they cannot guarantee the funds upfront. My bank debit card works fine, because if it is overcharged it will just run into overdraft. My credit card runs fine also because it is money straight from the bank.
Credit cards are not accepted at a lot of places, or have a minimum transaction price attached to them because of credit card fees. Online transactions will also run you credit card fees quite often. It is not uncommon to pay a 2% credit card fee. Debit cards don't have these extra fees (at least nowhere I've ever seen.)
If you are putting down a deposit at a hotel, they will hold funds on your debit card that you cannot access until they are released. With a credit card this does not happen, they just charge any costs to the card at the end of your stay.

Hope this was helpful to you Smile
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#16
Credit cards can be use to purchase even without cash, you can use it online or you can swipe your physical card on some store that are accepting credit card, but be aware that credit card has credit limits and you will pay it with ineterest but it will depend on the store and goods that you bought. Debit card is a card that you need a fund before you can use. Like paymaya, if you're familiar with paymaya, pay maya can be either vitual debit card or physical debit card, but don't get me wrong. You can link your physical and virtual card to each other.
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#17
(01-10-2018, 02:51 PM)Henrywrites Wrote:
(01-10-2018, 02:05 PM)Paco Wrote: Credit cards give you a credit to pay things, and the debit card never going to give you credits they just work with your savings. Also, the credit card has to be paid monthly and the debit cards have to be paid at the moment with the savings available in your account. The best choice to use depends on your needs and your economic incomes because if you have not had an established work with a monthly salary you should start with a debit card. So it depends on your situation.

You've got a point in your explanation. The thing with debit card is that one is not going to make any spending as long as there are no money on the person's saving accounts which means that one got to save up funds. 

For me, I would want to go with the credit card since it is going to give me the chance to spend as long as I want with the hope of paying off at the end of every month since I'm active at work. The thing with credit card is that it gives me the chance to make frugal spending as well. 

Very well said brother, I confused what is the different between debit and credit card, now I know what is the difference between the two brothers so thank you for that.

Can I ask what is the different of visa card and master card ? I use visa card but I don't which is better to use visa or master card?
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#18
The main difference is in the name itself, meaning, credit cards offers you credit to pay for things, basically it's the banks money that you're using to pay for the stuff that you're gonna buy with it. On the other hand, debit cards, debits it straight to your account. Once you buy something it'll deduct the amount straight from your savings. So it's your money that you're using. So, basically credit card is the banks money and debit cards are your money.
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#19
Credit card is used to get things in credit and you will have to pay for it later while debit card is used to buy things on your own money, it is deducted from your bank account.
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#20
Credit card give you an a good representative for pay things, and the debit card never going to give you acknowledges they simply work for your investment funds. Likewise, the credit card must be paid month to month and the debit cards must be paid right now with the reserve funds accessible in your record. The best decision to utilize relies upon your requirements and your financial wages in light of the fact that on the off chance that you have not had a set up work with a month to month compensation you should begin with a debit card. So it relies upon your circumstance.
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