Credit Card vs. Debit Card

Front

What is a credit card?

Back

A credit card is a payment card that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services.

Front

What is a debit card?

Back

A debit card is a payment card that deducts money directly from the user's bank account to pay for a transaction.

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CCSS.RI.5.5

CCSS.RI.6.3

CCSS.RI.6.5

CCSS.RI.7.3

CCSS.RI.7.5

Front

What happens if you don't pay your credit card bill on time?

Back

You can be charged a late fee and it may negatively affect your credit score.

Front

Can using a credit card help build your credit score?

Back

Yes, responsible use of a credit card can help build and improve your credit score.

Front

What is the main source of funds for a debit card?

Back

The funds for a debit card come directly from the user's bank account.

Front

Which card is more useful in an emergency when cash is short?

Back

A credit card is more useful in emergencies as it allows you to borrow money.

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CCSS.RL.4.3

CCSS.RL.5.3

CCSS.RL.6.3

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CCSS.RL.8.3

Front

Does a debit card affect your credit score?

Back

No, using a debit card does not affect your credit score.

Front

What is a late fee?

Back

A late fee is a charge applied when a payment is not made by the due date.

Tags

CCSS.RI.5.5

CCSS.RI.6.3

CCSS.RI.6.5

CCSS.RI.7.3

CCSS.RI.7.5

Front

What is the main difference between a credit card and a debit card?

Back

The main difference is that a credit card allows borrowing money, while a debit card uses your own funds.

Front

Can you withdraw cash using a debit card?

Back

Yes, you can withdraw cash from an ATM using a debit card.