Credit vrs. debt?

Question

i have a dual card for either credit or debt and i can't figure out which is better or what the difference is. as far as i can tell the only diffreence is credit you need to sign and debt needs a pin and that credit takes a little longer to clear. is there any other difference, which is better to use?

Answer 1

Hi vog. there is no difference between the two ways accept for if you use the debit card as a debit it is deducted right then rather then a couple days later like the credit portion.

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Answer 2

It's a debit card that you have.

The money comes out of your bank account whether you put in a pin, or sign the receipt.

It does NOT go onto your credit report if you sign like a credit card.  There is no credit being given here.

It's just that some businesses will have you sign for it,  or you put in a pin.  It all has to do with how that particular business processes VISA or Mastercard.

The debit card can be processed both ways.

Answer 3

If you want to build your credit score, & are responsible when it comes to paying your bills on time, choose Credit when making your purchases then pay it off ASAP.  If you don't care about building your credit, you can go w/ the Debit options.  Either way, don't buy stuff you can't afford.

Answer 4

When using your DEBIT, the money comes directly out of your checking account.

Using the CREDIT portion is like a credit card.  If you don't pay the bill at the end of the month they will charge interest.

Answer 5

Credit Cards vs. Debit Cards

Generally, it's better to use a credit card than a check or a debit card. We know this flies in the face of good stay-out-of-debt strategies. However, when you pay by credit card, the United States Fair Credit Billing Act  offers protections.

These safeguards don't apply if you pay by check or by debit card. However, be aware that credit card debt is about the most expensive legal kind of debt there is. With banks paying as low as 2% on savings accounts while charging 19% or more on credit card balances, it makes sense never to carry a balance past your grace period.