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Debit Cards

2023-03-04 00:00:00 / episode: 47



Debit cards? Do you have a debit card? Do you know what a debit card is in some countries? Debit cards are very common and in other countries they're not very common at all and above and beyond that.

What's the difference between a debit card and a credit card? After all? They both have 16 digit numbers.

They both have an expiration date and they both have magnetic chips and strips so they look the same.

What's the difference? Well the big difference is if you use a debit card you're taking money straight out of your bank account.

On the other hand if you use a credit card you're borrowing money from the credit company.

So you're racking up debt isn't that terrible.

The one that doesn't make debt is called a debit card.

And the one that does make debt isn't called a debit card.

That's crazy.


Now if you use a debit card what are the good points in the bad points? The pros? And the cons.

One of the good points about debit cards is there's no um fees for the card every time you use the card you don't pay a company extra money you just pay the price that you have to pay.

Debit cards are also very convenient.

All you need is the card and it works as long as you have money in your account and there's no interest on the debit card payments you pay the money it goes out of your bank gone instant.

On the other hand you could have overdraft problems that means you spend more money than exists in your account.

And your bank then gives you uh kind of a loan to cover the money that wasn't in your account.

So that's a debt.

That's an agreement you make with your bank.

So it depends on the card and the bank account.

Another one is you don't build your credit account or your credit rating.

And for some people, having a good credit rating is very, very important for me.

I try not to use credit, so I'm not very concerned about my credit rating, but everybody has their own personal opinion about that there.

That's debit cards in a nutshell."