Charge!!Nov 16 '00 Write an essay on this topic.I want to be perfectly honest with you before I write this review. I believe my "expertise" on this matter comes from two separate and distinct ends. One is that I used to work for a bank, and that makes me at least knowledgeable about how credit and debit cards work. The other is that I was a bonehead in college who ran up horribly large credit card debt, all the time dreaming of the day I would get that six figure income with which to pay them. I graduated in 1994, and I'm still waiting on the six-figure job (you better believe that the bank wasn't it!) and the credit card debt to be abolished! As cynical as I am about those credit cards, I truly feel that both credit and debit cards are a necessary evil of life today. You need both to function in our society, and if you don't have at least one, you are totally out of the loop. Is it just me, or does it seem like some merchants act like taking your personal (God forbid not out of state) check is a favor? Although the debate is about debit and credit cards, there is also one other card, sort of like a halfway meeting point between the two. This is called a Visa Check Card. This is my favorite of the 3. Differences and Similarities * The credit card uses a line of credit extended to you by the issuing bank. You work within a predetermined limit, and as long as you don't hit the high mark, you can charge to your heart's content. You will pay an interest rate on all new purchases if not paid off within your grace period. * The debit card is like an ATM card. The one I have is issued by USAA and I can use it at stores like Walmart or my local grocery stores and even some gas stations. Mostly the same people who take ATM cards. The card is linked to your bank balance, and the purchase price is taken out of your account instantaneously. * The Visa Check Card works the same way as the debit card, but you may use it anywhere they accept Visa. It is a wonderful invention. With this card, I am never worried that my card will be accepted. The only problem that debit and credit cards have is simple security. When using either, it is a rare occurrence that I am ever asked for ID to prove I am the cardholder. Whenever I have been, I have always thanked the merchant, because this is for my protection. Features of Each Debit/Visa Check Card * I have a daily limit on these cards of $400.00 (each) regardless of the balance in my checking account. * Depending upon the bank, you can actually save money by using your Debit card by not writing as many checks per month for insignificant purchases. I hardly ever have cash on me, so before the advent of the Debit card, it was not atypical for me to have many $5.00 or less checks to tally at the end of the week. * The Debit card does offer the small measure of security by making you type in your pin number into those little machines before using. Not so for the Visa Check card. It will work just like a credit card. * You must be vigilant about the balance in your checking account so as not to bounce any checks that may be outstanding. Credit Card * These are nicer for large purchases when you want to have a little more leniency with your budget. Haven't we all had emergencies that required us to spend more than we have in our liquid cash reserves? * Sometimes there are perks associated with using your credit card for purchases. Some of my former customers used their credit cards to pay for every bill and every purchase they made to rack up frequent flyer miles. These same people always made sure to pay balances off before the grace period expired and they were charged any interest. * We all need a credit card to be able to make hotel and rental car reservations. I have used my Visa Check Card for this purpose, but when we rented a van to go to Florida with another couple this summer, it cost more than $400, so there is the problem with the daily limit. Regardless of what card you use to make purchases and reservations, the key is using it responsibly. If you are willing to do this, then either card will be a perfect choice for you.  |
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