DRE 097 Section 2:30
October 1, 2014
Credit and debit cards are similar by both being a way to quickly access money, but they differ by the way you are able to access the funds. Debit cards are linked to your bank account, you can only get out what have earned or put in. Credit cards are like a loan you usually have to pay money back over a period of time. Most debit cards are free of charge and don’t require a monthly fee. Credit cards have the advantage of reward points but an annual fee is required. Credit cards and debit cards both have their advantages. Credit cards build you credit, provide more perks, and excellent security. There are many benefits of having a credit card for use of car loans or home loans. Benefits of having a debit card would be the fact that there are no minimum charges and are accepted almost anywhere *Debit cards are a safer, faster, and convenient method to access your money.
Debit cards are the easiest way to access funds. Using a debit card the funds come straight out of your bank account, which makes it easier to manage your money. Most people have direct deposit to an account which they can directly access when using a debit card. You don’t have to worry about having to wait on a check to be mailed or deal with the long process of cashing it. The moment the money is put into the account it becomes active for you to have access to. Credit cards do not require a connection with a savings or checking’s account. Credit cards require you pay a monthly fee; a monthly fee is a set payment each month. Not just anyone can receive a credit card and it can be difficult to get if you don’t have a good credit score. One has to be approved to receive a credit card. Once approved, one will receive a credit card which could help build credit. All credit cards have a credit limit set by the credit issuer. This could range from a $500 limit- $3,000 limit or even more, depending on one’s credit...
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