what is difference between credit card and debit card?
- 1 month ago
The main difference between a credit card and a debit card is that debit cards are used to spend the money you have already deposited at the bank. In contrast, credit cards allow customers to spend money by borrowing it from the card issuer.
- robert43041Lv 71 month ago
Debit card means you have money in it and it is deduced when you make a purchase. A credit card means just that: you are buying on credit, which also means that you have user fees and CHARGES when you buy an item. That can get to be very expensive IF you do not pay the total due at the end of each month.Interests are added tot he balance: the bigger the balance, the higher the interest.
- Fred3663Lv 71 month ago
A debit card you spend your money, a credit card you borrow money.
- StephenWeinsteinLv 71 month ago
A debit card uses money that you have deposited. When you use credit card, you are borrowing the money that you use, and you have to pay it back later.
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- KiethLv 71 month ago
Debit cards work off the money you have, credit cards work off the money that you are worth.
- MichaelLv 71 month ago
A debit card is tied directly to your bank account. When you purchase something with it you are using your money and the money is taken from your account immediately and given to the merchant.
A credit card is not tied to your bank account. It is a tool you can use to quickly borrow money from your credit card issuer. When you purchase something with it, your card issuer gives money to the merchant and you now owe your card issuer instead of the merchant.
- PoseidonLv 71 month ago
A credit card is basically a loan of money which can be of any amount which is subject to your credit rating.
For example you can have a credit card which will allow you $1000 worth of credit to spend but as long as you don't use that card you will be charged nothing for it
However, if you use that card and spend say $500 you will have to spend interest on that money because it is basically a loan but if you pay that $500 off when you receive you statement you will not be charged interest. If not you will be charged a minimum amount to pay per month which includes interest on that $500 and you will continue to incur charges every month until the $500 is fully repaid/
A Debit Card is basically a card which will allow you tp spend up to the amount you have in your banl plus if you have an agreed overdraft then you can increase the amount spent to include that overdraft limit.
You will not be charged interest on what you have spent unless you have used all or part of your overdraft limit but you will be charge interest on the overdraft.
- Rick BLv 71 month ago
A debit card pulls the money straight from your account. A credit card allows you to make payments.
- RickLv 61 month ago
ask your bank, to hard to explain in this limited format ..........