Different Types of Credit Cards (cont.)
Contributed by Amanda Wood
Charge cards and credit cards can also both be used to take out cash advances. Cash advances are usually more expensive then standard cash advances, because most banks charge a transaction fee for taking the cash advance along with interest from the date to the cash advance is posted. This interest still applies even if you pay the cash advance back in full when your bill comes in. Also the interest rate is often higher on cash advances than ordinary credit card charges.
Less Risk Credit Cards
Most banks now issue ATM and Debit or Check Cards, which are somewhat similar to credit cards. The Debit and Check Cards' carry Mastercard or Visa logos on them and can be used where ever these major credit cards are accepted. However, these cards are directly linked to the money in whichever account you had them issued from. Therefore you do not have a credit limit like you would with credit cards. Its your obligation to know how much is in your bank account and not go over that amount.
Also with these cards you can use them at ATMs to withdraw money, make deposits, transfer money between accounts, find out your balance, and get a cash advance.
Debits cards can also take the place of your checks. Most people prefer them this way because you don't have to carry your checkbook with you and present identification, but you are still able to make purchases directly from your checking account. Another advantage is you can pay you bills immediately.
