Credit Card vs. Debit Card

Front

What is a credit card?

Back

A credit card is a payment card that allows you to borrow money from a bank to make purchases, which you must pay back later, usually with interest.

Front

What is a debit card?

Back

A debit card is a payment card that deducts money directly from your bank account when you make a purchase.

Front

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

Back

You may incur late fees and interest charges.

Front

Do debit cards require a PIN for purchases?

Back

Yes, debit cards typically require a Personal Identification Number (PIN) for transactions.

Front

Can you buy something now and pay for it later with a debit card?

Back

No, debit cards require you to have the money in your account at the time of purchase.

Front

What is a key feature of credit cards regarding purchases?

Back

Credit cards allow you to make purchases on credit, meaning you can buy now and pay later.

Front

What is a monthly bill in relation to credit cards?

Back

With a credit card, you receive a monthly bill detailing your purchases and the amount you owe.

Front

What is the main difference between credit and debit cards?

Back

Credit cards allow borrowing money to make purchases, while debit cards use your own money from your bank account.

Front

What is interest in the context of credit cards?

Back

Interest is the cost of borrowing money on a credit card, usually expressed as a percentage of the amount owed.

Front

What is a credit limit?

Back

A credit limit is the maximum amount of money you can borrow on your credit card.