Debit cards vs. Credit Cards
A lot has already been said about the difference between credit cards and debit cards. A debit card and a credit card are poles apart when you consider the principle behind their operation.
A credit card is somewhat like a loan account where you take loan for every single purchase that you make throughout the month at a fixed rate of interest. At the end of the month, you pay of your credit along with the interest. On the other hand, a debit card requires you to have a certain amount of money in your checking account beforehand. So whenever you make a purchase, the sum of money gets instantly deducted from your account.
Most of the merchants and vendors prefer a debit card to credit cards, because of the fact that with debit cards they do not have to worry about bad checks etc. There are certain other problems associated with credit cards that involve the theft of these cards. The credit cards are very vulnerable to being stolen and the misuse of these cards is not too uncommon either.
Nowadays there is a rise the number of theft of credit card via the Internet, most of the fraudulent sites take hold of the customer’s credit cards number and use it to rake up a huge sum of money. Because of this, the customer ends up with a huge amount of loan. So one must always resort to transactions over the Internet after ascertaining the reliability of the merchant, or else there is a huge probability that you will end up with bad credit.