A debit card is similar to a credit card. The only difference is that it is tied directly to your checking account instead of a credit line. That means if you make a purchase using your debit card, it would be similar to writing a check. The funds come out of your checking account, but you don’t have to wait 2-5 days for the purchase to show up in your records. Purchases made with debit cards show up on your bank statement typically within one hour to a day at maximum. Protection against unauthorized purchases made with a debit card is the same you would receive with a credit card.

2. What is a credit card?

A credit card is a line of credit available to you for purchases, similar to a home equity on a house. The credit card company/issuing bank will offer you a set limit when you first open up a credit card. They will also offer you a set interest rate on your card. But that is another post entirely…

Typically when you make a purchase with a credit card, it is to make sure the company you buy from doesn’t rip you off. If they do, you can have the funds sent back to you. It is also used for larger purchases that your checking/savings account might not have at the time of purchase.

3. Which should I use? Which is safer?

Good question. The final decision is up to you, but here are a couple tips to think about when making your next purchase.

Use your credit card if you are unsure of the company you are purchasing from. If they run away, you can get your funds back. If you used your debit card, those funds are taken from your checking account, which may not leave you enough cash for other expenses.
Use your debit card when making regular everyday purchases such as food, gas, clothes, etc. Stay away from using your credit card for these purchases if at all possible, unless it is an emergency.
Use your debit card in place of writing checks. It it much safer, not to mention faster, to use your debit card. Remember, when writing checks, all a thief needs is your account and bank number, which is on the bottom of every check.
Use your credit card when making large purchases. It is safer that way, but be sure to payoff that amount immediately.

A final thought. Think of your credit card as a large fluctuating checking account behind walls and armed guards. If anything happens to those funds, you will be able to get them back. Think of a debit card as your checking account. Whatever is in your checking account, that is the limit. Purchases are final, although granted you have the guards and the walls like the credit card, just don’t tempt fate to eat your checking account alive.

Disclaimer: This knowledge comes from being a teller at an international bank, and listening to other’s experiences. If you have any tips, I would be glad to include them. Comments are open.

Filed Under: Blog, Finances, How To
Tagged: credit card, debit card, Expenses, financial course

#86 Sponsored by GoDaddy: Credit Card Backlash, Sales staff or Advertising, and Google battles Viacom while Dell frauds

May 27, 2008 by Taylor Marek · 144Leave a Comment2008-05-28+02%3A00%3A39Taylor+Marek

This episode has been sponsored by GoDaddy. Get your piece of the Internet today and save 10% on your next order by using code POD11 or BLU11. http://www.godaddy.com

In today’s episode you will learn about how credit cards can eat you alive for Finances. For Business, will you pick a sales staff or invest in advertising, and for Technology, I give an update on the Google/Viacom lawsuit and how Dell was caught red-handed.

The articles used in today’s show can be found at:
http://askfsb.blogs.fsb.cnn.com/2008/05/23/taking-your-web-design-firm-to-the-next-level/
http://www.informationweek.com/news/internet/google/showArticle.jhtml?articleID=208400312
http://www.informationweek.com/news/hardware/desktop/showArticle.jhtml?articleID=208400410

If you have any questions, comments, or ideas about anything mentioned during the show, or to give your two-cents on a topic, call our toll-free line at 1-866-TMP-2860.

Podcast: Play in new window | Download (Duration: 38:25 — 17.6MB)

Filed Under: Business, Finances, Podcasting, Podcasts, Technology
Tagged: advertising, copyright, credit card, Credit Score, Dell, fraud, GoDaddy, Google, Leesa Barnes, Podcasting for Profit, sales staff, Viacom, YouTube

#36 Sponsored by GoToMyPC: When to use Credit Cards, Opening Sales Statement, and Apple enters the film rental service

June 11, 2007 by Taylor Marek · 99Leave a Comment2007-06-12+05%3A13%3A39Taylor+Marek

This episode has been sponsored by GotoMyPC. Try GotoMyPC free for 30 days! For this special offer, visit http://www.gotomypc.com/podcast

Help Donate to the Taylor Marek College Fund. Go to: http://taylormarekpodcast.chipin.com/college to donate.

In today’s episode I will show you when to use credit cards for Finances. In Business Tony Parinello will show you how to craft an opening sales statement. In Technology news, Apple is planning on entering the online film rental service.

The articles used in today’s show can be found at:

http://entrepreneur.com/money/moneymanagement/financialmanagementcolumnistpamnewman/article179410.html
http://entrepreneur.com/sales/presentations/article78614.html
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/12/cnapple112.xml

If you have any questions, comments, or ideas about anything mentioned during the show, or to give your two-cents on a topic, call our toll-free line at 1-866-TMP-2860.

Podcast: Play in new window | Download (10.8MB)