I just opened a bank account, what is the difference between credit and debit?

i opened a checking account and just got my debit card. when you use it, what is the difference between credit and debit?

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  • 1 decade ago
    Best Answer

    Credit you will sign the receipt and debit you'll punch your pin. The money comes out the same way.

  • 1 decade ago

    The difference between a credit card and a debit is the financial part. Debit card is directly linked to your bank account. Basically that is your credit limit, however much you have in there. So it is like a having a plastic check instead of a paper one.

    A credit card have charges at the end of the month with interest rates and have a line of credit that is not linked to your bank account.

  • 4 years ago

    Not sure on ages, but usually around 18 you get one. Parents might have to sign paperwork for anyone under that age so the bank knows they are going to get paid after the month's statement is sent out. Credit card: You charge money on it at stores, etc, and then pay it off AFTER when you get your online or mailed statement. There is usually a limit, like $700 per month. Debit card: You put money on this first, know your account balance, and then use a PIN *four numbers* that you plug in at stores when you use it. You have a check book and can write checks from this account. I often check how much I have in my account online. Very secure connection and it keeps me from not having enough of a balance. Never let this balance hit $0. If you are under 18, I suggest a Debit card that your parents also have control over. Since you are asking this and have no idea about this bank business, I assume you are under 18. If you are booking online tickets (for a flight? concert?) you must also check with the airline or w.e on how old you need to be to fly alone, etc. Also, you might need to be 18 or over to make the purchase on some sites, so let your parents help with that too. To open the account just go to the bank. If you are making a debit account, come with money to put in. The people at the desks will help you. They can explain everything. Maybe take a parent as well to make sure you don't get screwed over. You may also be able to make a Saving's Account that can gain interest over time. You will not touch this for many years, so I'm thinking you want a Debit account. Remember, Credit card balances are easy to lose track of, so KEEP YOUR RECEIPTS and make sure you check your online or mailed statements monthly. You don't want to go over your limit either. I think I started out with a $700 dollar balance when I first got mine. Whatever you charge you pay for, and if you pay late, you get charged a hefty late fee. Probably $40 bucks or higher, I think. Usually to pay off your credit account you have a debit account (where you write checks) or you pay at the bank. I have HSBC and they are great. If you know where you are going to college, maybe look up branches and ATMs in that area so you know you can access them without paying the annoying $2 fee if you use another bank's ATM.

  • 1 decade ago

    okay, if you are talking about a card linked to your checking account this is how it works....if you ever want cash back you HAVE to use card as a debit, it checks your actual available cash, if you go out to eat or something and you cant use your card as a debit than you can swipe it as a credit, it will still come out of your account right away like a debit, but SOMETIMES, especially gas stations, when you use your card as a credit only a dollar will come out right away and then a day or two later the actual total will come out. you also do not have to use your pin code when you use it as a credit.

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  • 1 decade ago

    with a debit card from the bank.... you can use debit and the money will come out of the account right then and if you use credit it will take it out in a few days

  • Anonymous
    1 decade ago

    I actually jsut opened a checking account as well and with my account I always CREDIT any purchase i make because if I debit it, it cost 75 cents whereas when you credit it, it's free. That is the main difference as far as mine goes!

  • Anonymous
    1 decade ago

    When you buy something with a debit card it immediately charges it to your account, but when you buy something with credit you don't have to pay until the bill comes.

  • 1 decade ago

    i think debit takes money out of the account automatically while credit takes a couple days to be taken, if tahts not correct then its the other way around.

  • 1 decade ago

    debit comes straight out of your checking account which is money you do have and when you use credit its like you have to slowly pay it off monthly

  • 1 decade ago

    debit card takes the money out of your checking account.

    credit card is a loan at a high rate of interest

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