I hear people all the time use the terms “credit card,” and “debit card” in the same breath, but they are actually two very different things. A credit card is just as it sounds; when you use it, you are making purchases on credit. But when you use a debit card, you are extracting money from your bank account to pay for the purchase.

Let’s take a look at each one in depth.

Credit Cards

You may think all credit cards are alike, but just like fingerprints, they differ greatly. Knowing that, you should shop around in order to get the best terms that you can find. Some people pay their credit cards off in full monthly, and if you’re one of those lucky few that can afford to do this, then you should probably look for a credit card with no annual fee or one that offers bonuses to their card holders. If you are the type of person that carries a balance on your credit card, then you should look for a card that will charge the least amount of interest.

The bottom line is that you need to take the time to learn the terms before agreeing to accept the credit card. Here’s a short list of things that you should ask (or read in the terms section of the paperwork)

* What is the A.P.R or annual percentage rate? Will it change after a specified period of time? Or is it a fixed rate
* Is there a grace period and how long is the grace period? (That time between charges and when the interest on those charges begins to accrue.)
* Do they charge an annual fee? Is so, how much?
* How will your finance charges be accumulated?
* How much are the late fees?
* Will there be a charge if I transfer balances to and from this account?
* What are the cash advance fees?
* What will happen if I go over my credit limit?

In most stores or businesses, the retailer does not charge the customer any fees for using a credit card. And Federal regulation gives the consumer purchase protection. In other words, if you have a problem with merchandise or services and make a good faith effort to reconcile that problem with the seller with no success; you have the right to withhold payment for the merchandise or services.

Debit Cards

Recently debit cards have become a really big item, the use of debit cards has doubled; often when asked debit or credit; the answer is debit more and more. In fact, twenty percent of all credit transactions are now done with a debit card. No interest fees are charged on debit cards; however, at certain retailers, they do charge a small fee for using them. Anytime you make a purchase, the money is automatically withdrawn from your checking or savings account. Debit cards look like credit cards and to a certain extent act like one. But because the amount comes straight out of your bank account, you may have a financial fiasco if a debit card falls into the wrong hands or if you forget to deduct the transaction amount when reconciling your account balance.

No matter which card you choose to use–a credit card or a debit card or both–you will experience convenience and ease-of-transactions. It’s up to you to decide what’s best for you!

Most people got accustomed to use credit or debit cards in daily life. But very often things happen when you need cash and no card can help you. Let’s say you are going to visit a veterinary clinic with your dog and, of course, need to pay for the consultancy of a veterinarian. But you know that credit cards are not accepted at the place. So, you should think about payment beforehand. What to do?

Credit card companies and banks know about these sudden needs of the consumers and offer them with the cash advance option. It allows the cardholder to convert some percentage of the credit limit to cash money. Therefore those, who need cash as soon as possible and have a credit card, can use the option of cash advance to their advantage because it is one of the fastest ways of getting money.

Cash advance is taken out on your plastic or credit limit and can be a half of it or even more. You can get cash in the nearest affiliated ATM, write special checks for cash advance, or go directly to the bank or credit company and present your card in person. What way of getting cash suits you the most is for you to decide.

This option is really a good way of getting cash but expensive. Before applying for cash, spend some time to count all the charges in order to know for sure whether or not cash advance option is beyond your purse because it includes cash advance fee, have no grace period, and higher interest rate in comparison with purchases. As for a cash advance fee, it is a fee that you pay the bank for using the plastic to get cash money. The fee can be deducted from the cash advance at the time of money withdrawal. Or, you may receive a bill with cash advance fee involved.

Unfortunately, there is no grace period feature relating to the cash advance option. So, you have to start paying interest right after you get the cash and continue until the cash advance is paid up. Interest rate is one of the most important features that we first pay attention to and wish it to be as lower as possible. In case of cash advance, interest is higher than the one on purchases.
Most credit issuers apply your payments first to purchases and only then to cash advance. And you will make payments for many years in order to pay up the cash advance, if you pay only the minimum monthly

Moreover, if you are going abroad and wish to be sure that you may apply for cash advance when needed there, learn whether or not your bank offers you such opportunity or you can only apply for cash in-town.

As you see, cash advance credit cards are usually accompanied with no free period, high rates and fees and have only several advantages. All these facts can paint a sad picture with just a few rays of light but still it has benefits and is one of the most alluring options in times of cash needs.