What is the difference b/w credit and debit card?

Please anybody tell me the difference and use of credit and debit card.

 

debit card === Pre-Paid
credit card == Post-Paid

 

which one is best? In what conditions we use credit and debit card?

 

For the most parts when it comes to buying things online and offline, they do not make any difference.

With Credit Card, the bank offers you an unsecured revolving credit while with a Debit Card, you are using your own money. With that said, with a credit card, it can easy to be in debt because you are basically spending money which is not yours, you will inevitably be charge high interests for any outstanding amount if you do not clear your outstanding balance by the end of the statement date. The benefits with a credit card is that it allows you to purchase things which may be beyond your current spending budget.

Say if you see a LCD TV which is being offered but you do not have enough money in the bank to pay for it or you already allocated the money for something else, you can use a credit card to buy it provided it is within the provided credit amount. This however would be tagged with high interests.

A Debit Card is basically like an ATM Card which you can use in the stores to make purchases with instead of carrying physical cash.

Here in Singapore, the typical credit card interest rate is 24% per annum. If you do not clear your debt early, you can be drown in financial debts.

 

If you have a steady regular income and you are careful about not overspending the CreditCard can be very convenient to have.

You should also not default on the payments otherwise you will be charged more.

You must pay atleast the minimum due everymonth of the total amount due (*which is normally about 5% in my country).

If all the past dues are paid you will enjoy interest free credit till the next payment is due.

You can also withdraw a limited amout of cash from an ATM using the credit card.

Plus there could be other benefits depending on the cc issuer: If I spend a huge amount on any product I can convert that into a regular loan so that my cc spending limit will not be blocked for further purchases. I can also get a cash loan on the same basis and continue to enjoy 100% spending limit in the cc.

Basically credit card business is nothing but money lending. As long as you dont default and keep paying the interest they like you to spend more so they make profit from the interest they charge.

 

How much interest we have to pay to bank in credit card? Is there any disadvantages of Credit or debit card?

 

debit card === the money all you have
credit card == your future money.

 

Debit card is safer than credit card. Actually debit card user have more money than credit card user because they use their own money instead loan from the card issuer. Its more secure, if you been fraud, just the amount on your debit card can be fraud. If credit card, it can be reached to your credit limit.

I am a debit card holder.

 

Are u a credit card holder? If yes, then how much interest do you pay?

 

The credit card interest would verify from country to country and bank to bank.

In my case, in Singapore, it is 24% interests per annum for all outstanding fees. You will need to make at least the minimum amount of 5% or $50 whichever is higher every month.

 

thanks to tell me.
What are the factors included in Credit card?

 

What do you mean by factors in this case ?

I supposed if you mean what criteria you need to get a credit card, it all depends on your country and your bank.

Basically, you need to provide evidences that you are earning constant income and/or be able to pay your debts. In Singapore, you need to earn a minimum of $30,000 a year in average income and be in good credit standing.

 

factors means,whenever you apply for a credit card what documents are needed and in how much duration you have to pay on credit card?

 

I believe you are from India. There are two ways from what I know in which you can get a credit card. One is to place a deposit of a certain amount of money with the bank and they will issue you a card or alternatively if you are a salaried employees, you can opt for one. I supposed the other things would probably be your government issued ID. Do check with your bank as they can vary from bank to bank and country to country.

As for how long you can take to repay your debts on the credit card, basically there is no limits. As long as it is a credit card and not a charge card like American Express or Diners, you just need to pay the minimum payment each month on time which is typically 5% of what you owned. However if you pay the minimum each month, you will just be ballooning your debt.

For example, check http://www.hdfcbank.com/personal/cards/Credit_Cards/Silver_Credit_Card/cc_silver.htm

 

Debit is your money. Credit is the banks money.

 

thanks,
Please tell me what is the bad mortgages in credit card?

 

can i know what you do in Singapore? I mean to say your Profession.

 

Debt card is easy to issue because in Debt card you use your own money (Pre paid money) , however for credit card you have to provide the bank some statements like your monthly bank statment , your job title or your source of income then they set some limit of your credit card , you can use that limit through out the month .. and at the end of month you have to pay your credit card bill which my soul don't want to pay .. but I have to pay all of the money on due date lol !