The real difference between a debit card and credit card is imprinted within the behalf of the two cards. The debit card allows you to withdraw or 'debit' the amount from your bank accounts, to which the map is attached, whereas in case of a credit card, you 'credit' the money which meant that you borrow the money from your credit card company.
The difference in theory implies, that while using a debit card you spend that is you have an expenditure which is directly deducted from your bank account, whereas, when you use a credit card, you spend, that is have an expenditure as well as have a liability of the spent amount plus the APR (Annual Percentage Liability). From the perspective of the consumer economics both the cards and their programs are great, but if you compare, then the debit card is a better option. Click this link: read the full article.
Debit Card: When you swipe a debit card, it acts exactly like a bank check or even direct cash. The amount gets transferred (deducted) from your bank account to the seller from whom you have done a purchase. It can be fitted to any account, a bank savings account or even a current account. The basic thing is that you're spending your own hard-earned money. The only difference is that you're paying through the card, instead of giving out a check or direct cash. It isn't a prepaid card or a charge card, where the financial institutions levy massive fees for the proceedings. Please note that some financial institutes have a policy of charging some sum of money to cover up processing charges on an annual basis, this fee is negligible.Overdraft Charges Continued.
Credit Card: A credit card as the name suggests is a card where every card swipe means that the card users have borrowed money from the credit card company. Indeed in such a case, the company bears the expenditure on the name of the card users, and the total amount is repaid to the company through a monthly bill. An APR (which is substantial) or an annual percentage rate is charged upon the total payments made through the card. Late fees, fines and membership fees levied on the chart, and with effect owning and using a credit card has expenditures of its own. In the event you want a lot more tips pertaining to this topic, check out; http://unicron.blog.com/?p=74.
Some people like carrying a card rather than money because they believe that it is safer than carrying cash. People can have the same convenience of a credit or debit card by carrying a prepaid card. The major advantage the prepaid master card option has is that there's no fees associated with it because there are with the credit or debit option. The credit card companies charge an annual fee to use their card and they charge an interest rate fee on all outstanding balances.
Most debit card users are required to pay an overdraft fee if they charge more on their card than what is offered in their checking account. Some banks charge incredible overdraft fees, even as high as thirty five dollars no matter how small the overdrawn amount. One user reported having to pay thirty eight dollars for one cup of coffee.
He paid for a three dollar cup of coffee with his debit card tied to his checking account which was overdrawn at the time of the purchase. The overdraft fee was thirty five dollars which he saw on his bank statement two days after he bought the coffee. The prepaid card has no interest fees or overdraft fees because the user can only make purchases equal to the amount of money on the card.
User Advantages and Disadvantages: The following are among the advantages and cons of two.
Debit Cards: This type of card, doesn't have an extra charge (conditions exist) or an APR. The user doesn't have to pay back any extra fee or charge to the card provider. The debit card can also serve to withdraw cash from an ATM, or from the seller himself. Another very good provision that can be utilized by the debit card holders, is because they can overdraft from their account free of charge in many cases, till a certain amount, especially if the card is headed by a bank. Please note that there's certain fees and taxes, that are levied if the map is used for very high amounts. Some common debit cards include, Visa Debit, Visa Electron, Interac, Laser, Maestro, Solo, Switch, etc. The only possible disadvantage is that very, very addictive spending can turn out to be dangerous. This can be the case with both the nature of cards.
Credit Cards: A certain bitterness and negative feeling about credit cards has generated in Americans, in the post recession era. The high and floating APRs, late fees and fines are among the drawbacks of a credit card. But again there are certain advantages also, like a high credit limit, increase in credit score, perks, etc. Some popular credit card providers include, American Express, VISA, MasterCard, CitiGroup etc.
In theory, the best way to obtain a lower interest rate is to have a great credit report. If one's got a good credit report, it acts as an advantage, and credit card companies issue cards with lower interest rates. However, apart from a good credit report, a low-interest credit card is granted to a select class of working people, such as military servicemen or people with disabilities. Different companies offer special concessions to frequent fliers, or those who've low-interest business credit cards. There are likewise several other means to reduce credit card debt that you might incur. For example, checking the facilities of differential APRs. When a credit card holder spends on items of necessity such as food and wear, the APR that is charged is small and negligible. You can also avail bankruptcy credit cards or student credit cards, as the APR and fees of such cards is less and the credit limit is more. Thus, the interest on a credit card also hinges on the purpose. When you get a good credit report, you also have the advantage of negotiating the interest rates with the company. Another option is to get a secured credit card. The plus point is that, this card has a better credit limit and lesser APRs on some purchases.
In order to hunt for ways to cut credit card debt, you'll have to look at the credit card agreement. This agreement has different clauses, such as introductory APR. This is by default 0% for first 6 months in most cases. Then you'll have an APR that is applicable for purchases; this amount is usually variable. Credit card companies state the higher and lower limits of the APR, for example, 9.22% to 16.50%. Apart from the APR, a discount is assured that can go as high as 10% to 15 %, if you purchase from specified brand stores. Moreover, you'll have one APR for cash advances, an APR for balance transfers, and another one for overdraft facilities. The key is to read the arrangement and all possible details concerning the card on the company's website.
From a common man from the point of view, I would always prefer a debit card as a result of the fact that it's anti-materialistic and promotes good and wise spending habits.
The difference in theory implies, that while using a debit card you spend that is you have an expenditure which is directly deducted from your bank account, whereas, when you use a credit card, you spend, that is have an expenditure as well as have a liability of the spent amount plus the APR (Annual Percentage Liability). From the perspective of the consumer economics both the cards and their programs are great, but if you compare, then the debit card is a better option. Click this link: read the full article.
Debit Card: When you swipe a debit card, it acts exactly like a bank check or even direct cash. The amount gets transferred (deducted) from your bank account to the seller from whom you have done a purchase. It can be fitted to any account, a bank savings account or even a current account. The basic thing is that you're spending your own hard-earned money. The only difference is that you're paying through the card, instead of giving out a check or direct cash. It isn't a prepaid card or a charge card, where the financial institutions levy massive fees for the proceedings. Please note that some financial institutes have a policy of charging some sum of money to cover up processing charges on an annual basis, this fee is negligible.Overdraft Charges Continued.
Credit Card: A credit card as the name suggests is a card where every card swipe means that the card users have borrowed money from the credit card company. Indeed in such a case, the company bears the expenditure on the name of the card users, and the total amount is repaid to the company through a monthly bill. An APR (which is substantial) or an annual percentage rate is charged upon the total payments made through the card. Late fees, fines and membership fees levied on the chart, and with effect owning and using a credit card has expenditures of its own. In the event you want a lot more tips pertaining to this topic, check out; http://unicron.blog.com/?p=74.
Some people like carrying a card rather than money because they believe that it is safer than carrying cash. People can have the same convenience of a credit or debit card by carrying a prepaid card. The major advantage the prepaid master card option has is that there's no fees associated with it because there are with the credit or debit option. The credit card companies charge an annual fee to use their card and they charge an interest rate fee on all outstanding balances.
Most debit card users are required to pay an overdraft fee if they charge more on their card than what is offered in their checking account. Some banks charge incredible overdraft fees, even as high as thirty five dollars no matter how small the overdrawn amount. One user reported having to pay thirty eight dollars for one cup of coffee.
He paid for a three dollar cup of coffee with his debit card tied to his checking account which was overdrawn at the time of the purchase. The overdraft fee was thirty five dollars which he saw on his bank statement two days after he bought the coffee. The prepaid card has no interest fees or overdraft fees because the user can only make purchases equal to the amount of money on the card.
User Advantages and Disadvantages: The following are among the advantages and cons of two.
Debit Cards: This type of card, doesn't have an extra charge (conditions exist) or an APR. The user doesn't have to pay back any extra fee or charge to the card provider. The debit card can also serve to withdraw cash from an ATM, or from the seller himself. Another very good provision that can be utilized by the debit card holders, is because they can overdraft from their account free of charge in many cases, till a certain amount, especially if the card is headed by a bank. Please note that there's certain fees and taxes, that are levied if the map is used for very high amounts. Some common debit cards include, Visa Debit, Visa Electron, Interac, Laser, Maestro, Solo, Switch, etc. The only possible disadvantage is that very, very addictive spending can turn out to be dangerous. This can be the case with both the nature of cards.
Credit Cards: A certain bitterness and negative feeling about credit cards has generated in Americans, in the post recession era. The high and floating APRs, late fees and fines are among the drawbacks of a credit card. But again there are certain advantages also, like a high credit limit, increase in credit score, perks, etc. Some popular credit card providers include, American Express, VISA, MasterCard, CitiGroup etc.
In theory, the best way to obtain a lower interest rate is to have a great credit report. If one's got a good credit report, it acts as an advantage, and credit card companies issue cards with lower interest rates. However, apart from a good credit report, a low-interest credit card is granted to a select class of working people, such as military servicemen or people with disabilities. Different companies offer special concessions to frequent fliers, or those who've low-interest business credit cards. There are likewise several other means to reduce credit card debt that you might incur. For example, checking the facilities of differential APRs. When a credit card holder spends on items of necessity such as food and wear, the APR that is charged is small and negligible. You can also avail bankruptcy credit cards or student credit cards, as the APR and fees of such cards is less and the credit limit is more. Thus, the interest on a credit card also hinges on the purpose. When you get a good credit report, you also have the advantage of negotiating the interest rates with the company. Another option is to get a secured credit card. The plus point is that, this card has a better credit limit and lesser APRs on some purchases.
In order to hunt for ways to cut credit card debt, you'll have to look at the credit card agreement. This agreement has different clauses, such as introductory APR. This is by default 0% for first 6 months in most cases. Then you'll have an APR that is applicable for purchases; this amount is usually variable. Credit card companies state the higher and lower limits of the APR, for example, 9.22% to 16.50%. Apart from the APR, a discount is assured that can go as high as 10% to 15 %, if you purchase from specified brand stores. Moreover, you'll have one APR for cash advances, an APR for balance transfers, and another one for overdraft facilities. The key is to read the arrangement and all possible details concerning the card on the company's website.
From a common man from the point of view, I would always prefer a debit card as a result of the fact that it's anti-materialistic and promotes good and wise spending habits.