However, if you were turned down or if you prefer not to risk getting into debt, there are other options available to you. There are other cards, in addition to credit cards, that can also provide you with great flexibility and convenience for a variety of usage situations. Read on to see which one of these cards may be the best fit for your situation. Understanding Your Options Charge cards work like credit cards except that they don't not have an associated interest rate because you agree to pay the full amount of the charges due each month. The card issuer usually charges you an annual fee for the privilege and convenience of using the cards.
Debit cards look just like credit cards and can be used in many places where a credit card is used.
In addition to the issuing bank s brand, you will also see either a Visa or MasterCard logo on the front of the card. The difference between a credit card and a debit card is that a debit card uses the money in your bank or investment account to pay for purchases. An advantage of a debit card is that you don t get into debt because you only spend money you have available in your bank account. A big disadvantage is that if there are any fraudulent transactions on your account, you will not have access to your money, the amount involved in the fraudulent transactions, until your bank completes its investigation. Although most banks work quickly to clear up this kind of problems, it may take several months.