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Choosing A Credit Or Debit Card For You

When choosing a card there are many to choose from and each of them are different have different features that you need to be aware of

. If you choose to get a debit card, know that it is a plastic card that is linked to an account and is used to pay for purchases. In many ways it is considered a cash form of payment as anything you buy is immediately withdrawn from your account in an instant. Whatever financial records that card is affiliated with, that will be the place from which the money is drawn immediately.

Now, if you choose a credit card, this is also a plastic card like the debit, however this is a bit different because it does not draw from a well of immediate funds but rather works in a debt like function as it relies on money coming in from a credit card company. It takes the money from that company and the card user than pays it back later on in the form of a statement or bill. There is an interest rate associated with it as well. This is helpful because the user may make larger withdrawals than what is immediately in the bank account but this can result in high amounts of debt that can accumulate if the person is not keeping careful track of their spending records.

Another card is the pre-paid credit card. This one offers the same benefits of a credit card processing Services, but there is no risk of going into debt since it is already pre deposited into the bank by the user and then that money is taken care of and accounted for in advance. The card user can then use it for any purchases but must remember to refill their account.

by: vishu
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