Are credit cards linked to checking or saving accounts?

Question

normalice · Accepted Answer

Neither. Credit cards are their own account. You can, however, get a debit card that links to your checking account, which functions exactly the same as a credit card, as far as people you buy stuff from are concerned. The difference is in how you pay. With debit cards it comes out of your checking account immediately. With credit cards you go into debt and if you dont pay off that debt within a month you get charged a massive amount of interest.

Now, debit cards, as far as I understand, are exclusively tied to checking accounts. The whole point of a savings account is so your bank has some subset of your money that you don't intend to access often. This allows them to be a little more ambitious in how they invest your money, because they know you are less likely to ask for it back, and in return they usually offer some small amount interest to keep it in their hands. Checking accounts are for daily use and usually don't get much interest, if any, and sometimes even incur fees if your bank can get away with it.

Guy13 · Accepted Answer

No they are not but the same bank can provide you checking and credit card.

PrettyPriya · Accepted Answer

That is largely going to depend on the issuing bank. Most of the time they will be for at the very least, payment purposes. A link from the issuing bank or credit card company to your bank account allows you to pay your credit card balance each month.

That would be the most common link between a bank and credit card. There would also be a link if your bank is also the financial institution issuing the credit card. That would be linked to your checking or savings account as a customer of the bank.

Again, mostly that is for ease of payment and nothing more. Since most everything takes place online these days, it just makes sense to link those two accounts for your own benefit. A lot of places have autopay features so you don’t even have to remember to pay your balance. Hope this helps.

Avicenna · Answer

In Germany they are. In the US, generally only secured cards are.

In_Trance · Answer

Link meaning if you don't make payments, will they wipe out your account?  Yes they will

Anonymous · Answer

Sometimes they are.

Are credit cards linked to checking or saving accounts?

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