Well, you may be able to, but there are ways to set things up with your bank to make sure you don’t.Ĭredit, on the other hand, makes it easy to spend money that you don’t have. To summarize the difference between debit cards and credit cards: Debit is spending your own money, while credit is borrowing money to pay for your purchases.ĭebit is the cheaper of the two options because it protects you from spending more money than you’re making - you can’t spend more than what is in your bank account. The APR is the percentage of interest that will be charged over an entire year. Regarding credit cards, the string is called an Annual Percentage Rate (APR). Remember this: There are almost always strings attached when you use other people’s money. Will I Be Charged Interest?ĭebit cards don’t charge you money to make the transaction, because you are using your money, and once the cash lands, the transaction is complete.Īs I described above, credit cards charge you interest, because when the credit company sends cash to the gas station, a loan or credit is sent to you. Speaking of interest, let’s look at how debit cards differ.
0 Comments
Leave a Reply. |