Credit card VS Overdraft

[regim]

Hi Everyone

What is the difference between Credit card and Overdraft and which one is the best

[Dave A]

Normally the interest rate on an overdraft is a lot cheaper than on a credit card, although whether that's an issue depends on whether you're drawing cash, and how quickly you're repaying the spend.

If you're buying goods and turning over the limit every 30 days a credit card works out quite well as virtually free finance. However, if you're making minimum payments, it's quite expensive.

[Phil Cooper]

Credit Card usually demands a minimum payment per month, around 10% of the balance.

The Overdraft supplier is usually happy if the account is active, with regular transactions.