Debit Card and Credit Card - what is the difference?

Discuss Canadian banks, bank accounts, and anything related to banking.
1819
Posts: 8
Joined: Thu Jun 05, 2008 3:35 pm

Debit Card and Credit Card - what is the difference?

Postby 1819 » Thu Jun 05, 2008 6:52 pm

Hi, I'm new to this.
Can someone please explain to me the difference between Debit Card and Credit Card? I am 19
and I want to have bank account and credit card. Am I going to be approved right away?

Thanks

theway
Posts: 26
Joined: Tue Jun 03, 2008 6:33 pm

Re: Debit Card and Credit Card - what is the difference?

Postby theway » Thu Jun 05, 2008 6:57 pm

Debit card is a bank card linked to bank account, usually chequing account. With the bank account you deposit money there and then you can withdraw the money with the debit card, or you can pay for purchases directly with the card if the merchant accepts debit payments.

The credit card is a card linked to a credit account. When you order something with a credit card you actually borrow money from the credit card company, which you have to repay with interest.

1819
Posts: 8
Joined: Thu Jun 05, 2008 3:35 pm

Re: Debit Card and Credit Card - what is the difference?

Postby 1819 » Tue Jun 10, 2008 4:17 pm

Thanks
I also wanted to know what type of credit card is ideal for starters. I am not in college so i guess no student credit card for me....

sunshine
Posts: 23
Joined: Tue Jun 03, 2008 5:55 pm

Re: Debit Card and Credit Card - what is the difference?

Postby sunshine » Tue Jun 10, 2008 4:26 pm

You can use your debit card for almost all your small purchases. You need credit card only if you want to buy something online or for major purchases such as TV, furniture....


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