It is important to know the advantages and disadvantages of owning credit cards. You must be aware of the plus points but knowing the disadvantages can allow you to prevent costly mistakes. If they let you buy anything you want they can also tempt you to pave your path towards destruction too.
What Is A Credit Card? A credit card is a plastic card which may seem harmless and useless, but it can change life as you know it. The card contains a certain amount of money lent to you by the bank. That is why it is known as credit card not debit card.
For example, let's say you are the card holder of a credit card which has a limit of US $3000. You cannot exceed this limit, if you do, the card will be claimed as exhausted and you will not be able to pay for the goods which are going over your card limit. Instead, you can pay the amount which is exceeding in cash or hold it off for next time.
What Is The Difference Between A Debit Card And Credit Card? In more simple words, credit cards hold credit balances, while debit cards hold debit balances. Credit is an amount which you borrow from a friend, family member, or the bank, or you may buy the goods by having the provider lend them to you for which you will pay afterwards. A debit card is used to extract your own money.
In more simple words, credit cards hold credit balances, while debit cards hold debit balances. With debit cards you can buy goods and services, or you can withdraw any cash as well, but the money used will belong to you only; it will not belong to another person, not even the bank. A credit card allows you to make purchases by letting you borrow money from the bank, which have to be returned at the end of the month, or eventually, and some banks charge interest as well.
Credit cards may also be used to pay for the gas or items available at a gas station, but most of them do not give offers which the program provides on the use of debit cards.
The debit card program can be availed at retail stores as well. The same applies for them too, you may receive small perks on getting a certain amount of points, or you may receive more benefits by becoming their member. But you must remember to refill your card at the end of each month. The negative aspect of this program is that you can only have cash access to the amount recharged within your card and you cannot exceed its limit.
Gas Station. Credit cards can be used to pay for the gas or items bought at a gas station, but depending on the programs which gas stations offer, they may not be beneficial for you. On the other hand, gas stations use their own debit card program which they know their customers can benefit from. When their customer avails the debit card at the gas station, they receive points which they can use to get small perks such as free goodies, or free gas.
The negative aspect of this program is that you can only have access to the amount recharged within your card and you cannot exceed its limit.
What Is A Credit Card? A credit card is a plastic card which may seem harmless and useless, but it can change life as you know it. The card contains a certain amount of money lent to you by the bank. That is why it is known as credit card not debit card.
For example, let's say you are the card holder of a credit card which has a limit of US $3000. You cannot exceed this limit, if you do, the card will be claimed as exhausted and you will not be able to pay for the goods which are going over your card limit. Instead, you can pay the amount which is exceeding in cash or hold it off for next time.
What Is The Difference Between A Debit Card And Credit Card? In more simple words, credit cards hold credit balances, while debit cards hold debit balances. Credit is an amount which you borrow from a friend, family member, or the bank, or you may buy the goods by having the provider lend them to you for which you will pay afterwards. A debit card is used to extract your own money.
In more simple words, credit cards hold credit balances, while debit cards hold debit balances. With debit cards you can buy goods and services, or you can withdraw any cash as well, but the money used will belong to you only; it will not belong to another person, not even the bank. A credit card allows you to make purchases by letting you borrow money from the bank, which have to be returned at the end of the month, or eventually, and some banks charge interest as well.
Credit cards may also be used to pay for the gas or items available at a gas station, but most of them do not give offers which the program provides on the use of debit cards.
The debit card program can be availed at retail stores as well. The same applies for them too, you may receive small perks on getting a certain amount of points, or you may receive more benefits by becoming their member. But you must remember to refill your card at the end of each month. The negative aspect of this program is that you can only have cash access to the amount recharged within your card and you cannot exceed its limit.
Gas Station. Credit cards can be used to pay for the gas or items bought at a gas station, but depending on the programs which gas stations offer, they may not be beneficial for you. On the other hand, gas stations use their own debit card program which they know their customers can benefit from. When their customer avails the debit card at the gas station, they receive points which they can use to get small perks such as free goodies, or free gas.
The negative aspect of this program is that you can only have access to the amount recharged within your card and you cannot exceed its limit.
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Credit cards may be very tricky as they may easily let anyone feel the need of buying useless items which are not needs, just wants. A debit card program may not always be an advantage either depending on its perks and your funds.
