Debit Card loans- Understanding Its Difference From a Credit Card

Not because you have a card in your wallet that says "MasterCard" or "Visa" means that you already have a credit card. Your card may either be a check card or a debit card. Debit cards and credit cards are different from each other in many ways. First, the transactions done using your debit cards are deducted immediately from your bank account right after you used them. You also do not receive monthly bills with payment dues and interest charges because you are not charging your card with anything. Unlike credit cards, the credit limit of a debit card is the same as the amount of money you have in your bank account tied to your card.

Like debit cards loans no credit check are also used as ATM (Automatic Teller Machine) cards at major ATM networks worldwide. When you withdraw money using a debit card from your bank's machine, the transaction is free of charge but if you do otherwise, a minimal transaction fee will be charged to your account. You would also instantly receive your cash that is electronically deducted from your account. When you withdraw from an ATM with your credit card, it's like you are getting a loan from your bank. You will not only be charged with a transaction fee, you will also be charged with a cash advance fee. In addition, you will also be subject to an interest rate issued by your credit card issuer and this is usually higher than the interest rate you have to pay for normal purchases.

In making purchases, you can use your card as either for debit or credit. This means that if you are shopping in a store or shop without any equipment to process transactions using a debit type one but accepts credit type one that match the type of card you have (usually MasterCard or Visa); you can still use your card to shop there. Although you used it as a charge or credit, you are still limited by the amount of money you have in your account and this amount is still deducted from your account immediately. Thus, it isn't considered as a charge but as a debit.

There are some banks that issue ATM cards that cannot be used for debit. Instant loans are only valid at ATM machines and at some merchants or stores with special arrangements with the bank that issued the card. While debit card has the account name, the account number, the bank name, bank logo and credit card logo on it, an ATM card has the account name, the account number and only the bank name and logo on it. It doesn't have the credit card logo and credit card issuer's name.

Debit card holders however, should be very careful about fraud. Should someone finds out about your PIN number and use it; he can get all your money and clean out your account in a matter of minutes. Therefore, it is advisable that you take extra care in using your debit cards. You may not plunge into credit card debts because of making too many purchases but you may fall into black hole because of lost money due to your carelessness. www.debitcardinstantloans.co.uk