Debit vs Credit Cards

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What is a Debit Card?

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A debit card is a payment card that deducts money directly from a checking account to pay for a purchase.

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What is a Credit Card?

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A credit card allows users to borrow money from a financial institution up to a certain limit to make purchases.

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What does PIN stand for in relation to debit cards?

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PIN stands for Personal Identification Number, a security code used to authorize transactions.

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Can you get cash back with a debit card?

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Yes, users can request cash back at the time of purchase with a debit card.

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What is a credit limit?

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A credit limit is the maximum amount of money that can be borrowed on a credit card.

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How are transactions recorded for credit and debit cards?

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Transactions for both credit and debit cards are recorded in monthly statements.

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What happens if you don't pay your credit card balance in full?

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If you don't pay your credit card balance in full, you may incur interest charges on the remaining balance.

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Is it possible to overdraw your account with a debit card?

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Yes, if overdraft protection is not set up, you cannot spend more than what is in your account with a debit card.

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What is the main difference between debit and credit cards?

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The main difference is that debit cards withdraw money directly from your bank account, while credit cards allow you to borrow money.

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What is a monthly statement?

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A monthly statement is a summary of all transactions made with a credit or debit card during the month.