What is a credit card, charge card or debit card? How does one differ from the others?
A credit card, as the name suggests, gives you credit – obviously for a charge. The days of credit one gets could range from 20 – 50 days depending on the date when one made the purchase. You can choose to pay your entire dues at one go, or stagger them after paying the minimum amount due every month. Besides this, it entitles the member to plethora of benefits like travel discounts, discount on retail loans. A charge card is pretty similar to a credit card with one major difference. With a charge card you have to pay the entire dues within the credit period and cannot carry over any balances like a credit card. A Debit card is basically like an ATM card on the move (or like your bank account on the move). It enables you to access your bank account for payment. When you make any purchases using a debit card, then your bank account is instantaneously debited to the extent of the purchase amount.
