I'm a little confuse about credit cards HELP!!!?

Question

Everytime I buy something i'm ask if I want debit or credit, I always choose debit, but I've heard some say that's not a good idea, can you explain why people prefer credit???

Answer 1

Debit is direct withdrawal from you banking account. Credit is a loan, usually on a card. It does NOT always give you 30-45 days to make payment. Some cards immediately start charging finance charges when you place an item on the card. The advantage to having a credit card - if you have a problem with the item or service placed on the card, the company will work with you to get restitution for bad item or service.

Answer 2

They are asking what kind of card you have. They have a button to push on the register. But you can charge a "credit" on a debit card, which usually means you have to sign for it. Clerks don't realize that a debit transaction costs them less than a debit transaction; I'm referring to what VISA charges them, not you. You should not have extra charges the way you do at an ATM if you are not using your financial provider's machine.



If you use a debit card it takes it out of your account immediately. If it is a credit card, you run up a balance and they send you a bill each month. Some cards have a grace period so it is like using the money for free if you pay it off each month. But a debit card is best for keeping track of your finances; you should enter each charge in your checkbook so you know how much you have in the bank (better, in the credit union) at any time.



Some gold and platinum cards can give you an extended warranty on major purchases so it makes sense to use it then.

Answer 3

When you choose debit the bank takes the money out immediatley, but they also charge you a fee. Usually 75 cents. When you use credit there is no fee and it could take sometimes up to a week for the bank to withdrawl the money. So the point is , if you are really good with keeping your bank records and you aways know exactly how much money you have then use credit. If not then use debit, so that when you call the automated line the amount of money they say you have willl be accurate.

Answer 4

Debit comes out of your account immediately. Credit gives you 30 to 45 days free interest and you have a few more rights as a buyer. If you have trouble with a merchant, you can withhold payment until things are set right. You cannot do that with debit purchases.

Answer 5

I think they are asking WHICH card are you going to use.



I have a debit card tied to my checking account and the money comes out pretty fast.



I have a credit card, and I get 30 days to pay it off without any interest, plus I get a 1% rebate back on all purchases.



Unless you are talking about a completely different arrangement, that's what it means to me.

Answer 6

depending on which bank you use, you get points for using debit (some even using credit.) I prefer using debit because it takes the money out right away and its easier to keep track of my account.

Answer 7

if your using a debit card from your bank. the only reason to use credit is because some banks reward you for using the card as credit. otherwise, it's the same thing both come out of your bank account immidiately.

Answer 8

Either way it will not effect you. The only benefit is credit takes a few days to hit your account.

Answer 9

If you don't understand the difference between debit and credit, you shouldn't be using cards. You're going to end up drowning in debt.



Why do people prefer credit, you ask? Because they lack foresight and self-control.



The emotional thumbs-downs are coming from people in debt up to their eyeballs. Listen to Dave Ramsey and stay away from debt before it consumes you.