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What are the costs and the pitfalls of using credit cards and debit cards?

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2015-07-15 11:47:44
2015-07-15 11:47:44

You should avoid using credit cards if at all possible. Irresponsible use of credit cards can credit large amounts of debt quickly. The interest charges can be substantial. Debit cards usually do not charge interest and can be used in situations when you don't have cash or need to hold something using a credit card, such as a plane ticket or a hotel reservation. That said, it's always best to use cash for optimal personal financial management.

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Related Questions


With a debit card, some banks will pass the fees onto you. This is why it's always important that you use your debit as credit. When you use your card as credit, you have the fees passed onto the merchant, rather than you.


credit card: no worries if card is lost all you have to do is annul it. Debit card: you have to be in charge charge card: don't really exist


Based on the cards I have, if it is a debit card the word Debit appears on the front above the Visa, Mastercard or American Express logo. Credit cards typically only contain the logo.


No, credit cards are loans and debit cards are checks.


Credit and Debit cards, Credit.


Credit cards say "credit" And debit cards say "debit". Hope this helps!


Online - Using Debit/Credit Cards At a local MetroPCS Authorized Dealer - Cash, Credit Cards, Debit Cards.


Debit cards when you use them take the money from your bank account. Credit cards charge the amount and then you are billed for it at a later date with intrest.


A debit card is similar to a credit card, as they typically will contain a Visa, Mastercard or American Express logo. There are two typical types of non-credit cards: gifts cards (which do not have your name on the card) or debit cards (with your name). Debit cards are issued by a bank and generally have conditions for use and monthly maintenance fees. Debit cards can be used in many of the same ways a credit card can: in-person purchases, online purchases, ATM withdrawal (check your card). The difference between a credit and debit card is that debit cards traditionally do not affect your credit rating, whereas credit cards do.




Debit cards do not report to the credit bureaus and therefore closing a debit card will have no impact on your credit score.


Yes, and debit cards too.


Yes they do, but they are treated as credit cards


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The Lipman POS will accept both debit and credit cards, as well as gift certificates.


Yes! Wendy's accepts Debit, Credit, and cash.


Credit and debit cards may look the same, but they are very different. Credit cards offer a line of credit which must be repaid either in a lump sum or in monthly installments. Debit cards pay directly and in full from one's bank account in the same manner as if a check had been written upon the account.


I know that they take debit cards.


Yes they do. But not credit cards


With a credit card, you pay later for something you buy.


Debit cards charges money direct from a checking account whenever purchases are made, while a credit card allows borrowing of money at local merchants.


Most places that accept VISA credit cards will also accept VISA debit cards.


There are a number of costs associated with debit cards including the cost of using a PIN (for some banks) or the costs for overdrawing your bank account. But, on the long run, the convenience is well worth it.


Debit cards don't incur a cost to use like credit cards sometimes do, the payment comes straight out of your account. It will cost you in fees if you don't have funds available. You may get chafed for using it abroad.



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