Debit Card Help

[Khalasthan86]

wjkk wjkf.

need some help with a debit card.

is a debit card like a credit card, but you can only spend the amount on your debit card.

but with a credit card, u can pay the bank after.

is this correct?

can u buy stuff from the net with a debit card?

thats all ! thanks

[Balait_da_Sher]

Yes, with a credit card you borrow money from the card issuer and pay on a set date. with the debit card your money gets taken out of your bank straight away.

If you are buying stuff online then use a credit card as you can then dispute transactions if you are not satisfied with the quality of the goods. With debit card, money has already gone outof your bank account and thenyou have to get it back. Where as credit card you can cancel the payment. Also with credit cards, you are covered from fraud etc (goods not recieved).

Finally, credit cards are probably going to work world wide where as your debit card will probably only work inyour country. I ensure that with my credit card, there is a direct debit setup totakethe money out automatically. This way you avoid paying charges etc.

[Matheen]

where as your debit card will probably only work inyour country.....

Good advice, but most Debit Cards work worldwide these days.

[S1ngh]

If you want to build up your credit history then use credit card often but make sure to pay it off every month. Using debit card will not help you in making your credit history. Strong credit history is a big thing when you want to buy a house, car or business in future. If you get the stress of all these credit card debts, late payments, high APR etc, just don't cancel the card... Pay it off and keep it away from your sight or trash it.

The major difference is what amardeep told you are about protection from fraud and you can always dispute any transaction.

[humkire]

My advice is old fashioned hehe. dont use credit cards! tear and throw if you have one haha!.

Try have money in your debit card which is the money you own in a particular account, plus an agreed overdraft.

There are a couple of situations tho where credit cards can be handy i.e 1) certain internet transactions allowing only credit not debit card , plus overseas travel, but only if you know there is money to quickly pay it off within a few days, and 2) in the world of business especially if you own a small business where you need to buy stocks for which you have no cash, but you know that in the next few days you can sell those stocks, pay off your credit card and have a profit which is income. Even in this situation, its better to be trying to buy stocks using either a) an overdraft limit on yur debit card and, or, b) agreements to pay off suppliers on a 30/60/90/120 etc day period from the date of procurement of stocks(to buy time to sell the stocks, repay the suppliers and keep the profit.

In your situation, if the above dont apply, have a debit card but dont have all your money in that account. Have a savings account by the side, used to top up your debit card account(normally a current account) from time to time.