what the difference between a credit card and a debit card

@kennedee (156)
September 16, 2007 9:25pm CST
Can you tell me what's the difference between the two. I already have a paypal account but I don't have any of this card. I've always been afraid of using credit card because I have a friend who have one and is still paying for his dept. And I also want to know what's the purpose of paypal in asking us for an account? can we just send money without having one? but i'm afraid that's not possible isn't it because paypal required one of this acount for registration verification purposes
1 person likes this
7 responses
@tlb0822 (1410)
• United States
28 Oct 07
A credit card is "borrowing" money that must be paid back. A debit card is a card that you get from your bank. In most cases in order to use that debit card there must be money in your account.
• Canada
5 Oct 07
A credit card is a card with a preset limit which you can use to pay for products or services, on the understanding that you will pay the bill later. For example, let's say you are out with friends and your car breaks down. Maybe the oil light came on, or some other trouble light, indicating a problem you know you won't be able to fix yourself on the side of the road. You're a long way from home, and you need to have the car towed and check into a motel. It's turning out to be an expensive night, yeah? Anyway, total expenses run you, say, $300. If you don't have that kind of cash on hand, you can use a credit card to pay, and the credit card company will bill you at the end of the month. When first acquiring a credit card, you usually start out with a lower credit limit, but that can be increased as you prove that you are responsible with the card. Be aware that if the bill is not paid promptly, you will start incurring interest charges, so pay off your bill every month. Credit cards should only be used for emergencies, because it's simply too easy to get into trouble with them, even for those who are responsible with money. They also are handy when, say, booking a campsite over the phone, or renting a car. But they should definitely not be used for everyday shopping. A debit card is different in that it draws funds from your account immediately, at the point of purchase, therefore you are not able to spend any more than you have in your account at that time. This action is performed by swiping your bank card and punching in your PIN. Charges for using the debit card are determined by the bank, and are determined by the type of account you have. You may be exempt from charges depending on the type of account you have. In order to use paypal, you must have an email address, and you must put money into the account in order to have money to use for online purchases. Or, if you receive a payment, the money can be deposited in the account by the payer and you can withdraw it later. Like a bank account, if the money's not in there, you can't take it out to pay for something.
@dio123 (1788)
• India
29 Sep 07
In credit card you spend first and then pay it to the bank while in debit card it the amount already you have in your bank account which deduct immediately when you spend, I prefer debit card
• India
25 Sep 07
debit card is linked with ur bank account and in credit card bank gives u the loan, regards
@eprado (1467)
• Philippines
17 Sep 07
Hello Kennedee, The Difference between a credit card and a debit card are: Credit card. Every time you use it, you are actually borrowing money that is made available to you by a bank or other financial institution. The institution pays the debt to the vendor, and in turn, you pay the money back to the institution. By signing up for a credit card, you agree to pay back the money that you borrowed, in addition to any interest drawn on the amount you borrowed. I agree you might end up paying debt for a long time. One pitfall that many consumers fall into is not keeping up with their debit transactions. This is like writing checks and not recording your purchases. You may end up trying to spend money that you don't have. If your not good at monitoring your card transactions, you will need to discipline yourself to keep up with your transaction receipts. Debit card on the other hand. You might have a debit card in your wallet right now, since many ATM cards now a days are programmed to have debit options, just ask you bank. Issued by your bank, debit cards take funds directly from the money that you have in your bank account, in a sense acting like a check, just faster. With it, you don't have to carry cash or checks, and it is very convenient to shop at a variety of places including gas stations, grocery stores, restaurants, and retail stores. They provide instant access to your money and are accepted worldwide. Debit cards are used like credit cards, meaning that the store you are shopping at 'swipes' them, and then you sign off on the receipt. You don't have to show a picture ID because its actually works like a cash except the money is in your bank account and your not carrying it with you. Also, you can only purchased things thats within the balance in your debit bank account meaning if you have zero balance you can not use it and will be denied. Yes paypal requires either one of them for your account to be verified. :-)
• China
29 Sep 07
credit card as far as i am concerned, is like your parents. you can get love from them without paying. however, i have to say, their love is not infinit with consideration to the limitation of the capability, time, age, health and the like. but as you grow up, time is up and it is you payback time. while debit card is likely to be likened as your partener. you have to pay your love to her, and then there will be returns.
@Rozie37 (15499)
• Turkmenistan
17 Sep 07
Well, as simple as I can make it, if you use a credit card you owe the credit card company. A debit card is connected to your checking account, so you are using your own money.