Random Question

[xPetrCechx 13,573]

Hi all.

What Is the difference between Debit Card and Credit Card?

Thanks.

[We Hate Scouse 10,327]

Hi all.

What Is the difference between Debit Card and Credit Card?

Thanks.

Debit card is basically you withdrawing money from your own bank account

Credit card is money that the bank has given you and you have to pay them back for, like a loan

[Muzchap 8,966]

Ok

Debit Card = the money is taken from your account (debited) - no interest

Credit Card = the money is paid by the credit card company and then they invoice you to pay them with interest if the balance is not paid in full.

Now - the best bit about Credit Cards is that if you are clever you can get 28 days free credit - before interest is charged.

Interest on a Credit Card is APR based - so if it had an APR of 12% that's 12% / 12 months = 1% charged on your balance each month

Credit Card is safest when buying online - sofa, tv, holiday etc - as if something goes wrong, the credit card company are in the firing line. If you pay with debit card, it's your problem to fix. With liquidators etc debit card is treated the same as cash, e.g gone, whereas credit card you are absolved and are covered

Obviously there are edge cases to the above and all providers are different but hope that explains it

[Billy. 2,742]

credit card - are things you should never have

[Bir_CFC 3,455]

credit card - are things you should never have

I'd say the opposite. You must have one. Use it to build your credit which is essential nowadays.

I don't understand how people go into credit card debt. That's just being stupid, can't blame a credit card for that. It's the same as blaming McDonald's for being fat.

[Billy. 2,742]

I'd say the opposite. You must have one. Use it to build your credit which is essential nowadays.

I don't understand how people go into credit card debt. That's just being stupid, can't blame a credit card for that. It's the same as blaming McDonald's for being fat.

why MUST you? i have never had one and never will have one. dont need it

[LDN Blue 7,903]

credit card - are things you should never have

Generally I agree with you.

But I've got one now which I use for my direct debits, which I then pay off by debit at the end of the month. Keeps my credit check healthy and hopefully will benefit me in the future when applying for a mortgage etc.

[Bir_CFC 3,455]

why MUST you? i have never had one and never will have one. dont need it

It's the easiest way to build credit. I moved to the US and the only way possible for me to build credit was through credit cards, otherwise it's impossible. You won't get a loan, get horrible interest rates if you ever need to get a mortgage, etc. Now if you don't anticipate any large purchases where your credit may be reviewed, then there probably isn't a need for a credit card. But that's not really the case for the majority of the people.

[CHOULO19 24,332]

In Lebanon we have something really cool that doesn't have the ability to put you in life threatening debt, doesn't force you to pay a 'tax' to banker every time you wish to buy on anything and doesn't allow you to spend virtual money you don't have.

It's a little something we call: "Cash"....whatever the heck happened to it in the world?!

[iseah100 5,612]

In Lebanon we have something really cool that doesn't have the ability to put you in life threatening debt, doesn't force you to pay a 'tax' to banker every time you wish to buy on anything and doesn't allow you to spend virtual money you don't have.

It's a little something we call: "Cash"....whatever the heck happened to it in the world?!

Hard to buy a house with cash, or a nice car, or other things. No?

[CHOULO19 24,332]

Hard to buy a house with cash, or a nice car, or other things. No?

Yeah, but that is a fundamental issue of the global economic system. Having a house or any sort of shelter should be basic human right, it should not have to pass through greedy bank owners.

Plus, I really don't get how credit cards/loans change anything, I mean you either have the money to buy a house or you don't. It just creates the illusion that you have the money while putting in endless debts that keep creating more and more money for bankers.

Credit cards is basically saying: "People outside the rich 'elites' can't have anything nice unless those rich elites make a shit load of money from it and tie their future to them."

And we just accept that a normal framework. It's absolutely beyond ridiculous.

[Pacquiao 1,834]

I have a raido in my car.

[iseah100 5,612]

Yeah, but that is a fundamental issue of the global economic system. Having a house or any sort of shelter should be basic human right, it should not have to pass through greedy bank owners.

Plus, I really don't get how credit cards/loans change anything, I mean you either have the money to buy a house or you don't. It just creates the illusion that you have the money while putting in endless debts that keep creating more and more money for bankers.

Credit cards is basically saying: "People outside the rich 'elites' can't have anything nice unless those rich elites make a shit load of money from it and tie their future to them."

And we just accept that a normal framework. It's absolutely beyond ridiculous.

Well, you don't really buy a house with a credit card though, do you? You get a loan from a bank that reflects your income/reliability and you pay off that loan off over 30 years or less. People don't want just basic houses, they want houses with a 2 car garage, nice yard, 4 bedrooms and 2 bathrooms. Same with cars, we like to drive nice things. Credit is an absolute necessity imo.

[Essien19 1,415]

Well, you don't really buy a house with a credit card though, do you? You get a loan from a bank that reflects your income/reliability and you pay off that loan off over 30 years or less. People don't want just basic houses, they want houses with a 2 car garage, nice yard, 4 bedrooms and 2 bathrooms. Same with cars, we like to drive nice things. Credit is an absolute necessity imo.

I don't think so. A lot of my german friends who are living in Munich would immediately settle for a so-called smaller house...

We live in a world where living in your own house has become a luxury and far to expensive for most people because of temporary employment, declining wages, outsourcing...even high trained specialists have to consider oneself to be exposed to intense competition.

The gap between the rich and the poor is getting wider and wider; a few families consider themselves lucky by owning most of the real estate, others have to be renter for their whole life's...that's the ugly truth and it happens to most people in the big cities.

But only in the big cities you can find qualified work with your bachelor/masters degree.

Therefore you have to secure credit for your privately owned house, otherwise you can't afford it.

If you want to start a family, you need more money, sadly, some people can't afford it, but that's a different subject.

Living in your own house should be a principle for all people.

For that issue i could't agree more with Choulo.