Difference Between Credit, Debit And Charge Cards

There are many people who have been using credit card and there are also many who are still in plans to get one. Before applying for credit card one would like to know what is the grace period. The grace period is basically the time given to the person to pay the credit which is usually of one month. During that period you will not be charged any interest.

Before getting a credit card you should inquire about few details so that it becomes convenient for you to use it. The most important thing that you should know what is the duration of the credit that one can pay after making purchases. According to the credit card company laws, they have to send the person bill at least before 14 days from the due date, hence giving the credit card holder ample of time to pay there bills.

Credit Cards vs. Debit Cards vs. Charge Cards

Few differences between credit cards, debit cards, and charge cards:

Credit Cards – In case of credit card, the bank or issuer extends credit to the card holder, thereby lending the card holder money upon demand. Credit cards are basically revolving credit because interest is charged on the amount of money that you have borrowed which is not repaid fully at the end of the billing cycle. Credit cards are, for all intents and purposes, revolving credit loans.

Debit Cards – Debit cards are an alternative form of cash. The card is same as that of the credit card, size and shape. Debit cards can be used only till the limited amount that is the available cash in your account. One cannot get any kind of credit on debit card as this is limited to the amount that you have in your account. There are also many advantages of debit cards like you do not need to write checks, one can withdraw cash from ATMs at anytime using them to order merchandise through catalogs and the Internet.

Charge Cards – Charge cards are short term extensions of credits that have to be completed in one billing cycle. With the charge cards one does not get the facility to pay the bill in installments, one has to pay it in one time.