Wednesday, December 13, 2006

Credit Cards Vs Debit Cards

Although credit cards are the most popular forum of credit around, alternatives such as the charge card also have their benefits. Despite both forms of cards being popular, many people do not know the difference between them. If you are looking for the best type of credit, then you really should compare the relative advantages and disadvantages of credit cards and charge cards. They might serve the same purpose, but if you know the differences between them you can get the right type of credit for your needs and hopefully save yourself some money.It is hard to say which type of card is better, although if you want to carry a balance then you have to opt for a credit card. Credit cards generally have more flexibility, as you can pay the money back more slowly. Credit cards also have the facility for 0% balance transfers which gives a huge advantage. However, if you are someone who always pays his or her bills back in full each month, a charge card might be the answer. This will give you greater spending power when you need it without allowing you to go into debt and pay interest on it.

4 Comments:

elisa said...

Credit cards with balance transfer can be really great to combine your debts or make transfer from higher rate credit card to lower one. As I know charge cards can not offer such opportunity.

MoneyMaker said...

As well as debit cards can't offer cash back. But to get some money back when shopping with a cash back credit card, is so pleasant indeed!

Opra said...

I agree with Elisa and think that zero balance transfer cards can be helpful for people who want to get out of debt faster. In this situation, credit cards win.

Judie said...

I prefer Visa credit cards. The reason is evident. No matter what for you need a credit card the company provides you with it.