Shyla Bernetta
Freshie
- Messages
- 28
- Joined
- Sep 29, 2009
- Messages
- 28
- Reaction score
- 0
- Points
- 3
Lets start by going over the main difference between a credit card and a debit card. A debit card is liked to a bank account while a credit card is not. Anytime you use a debit card money will be withdrawn from your bank account to paid for the goods and services you've just purchased.
A credit card on the other hand is basically a short term loan. An issuing bank will issue you a credit limit which is the maximum amount you can have outstanding on your credit card at any time. Every month the credit card company will total up all of your purchases and ask you to pay for them within 15 to 20 days. If you are unable to pay the entire balance after the 15 to 20 days is up then the credit card will charge you interest on your outstanding amount until the bill is paid in full. Debit cards do not affect your credit score while a credit card does effect your credit score.
A credit card on the other hand is basically a short term loan. An issuing bank will issue you a credit limit which is the maximum amount you can have outstanding on your credit card at any time. Every month the credit card company will total up all of your purchases and ask you to pay for them within 15 to 20 days. If you are unable to pay the entire balance after the 15 to 20 days is up then the credit card will charge you interest on your outstanding amount until the bill is paid in full. Debit cards do not affect your credit score while a credit card does effect your credit score.
