Credit and Debit Cards

Front

What is a Debit Card?

Back

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

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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 happens at the end of the month with a Credit Card?

Back

The cardholder receives a bill detailing all purchases made during the month, which must be paid back.

Front

Can you use a Debit Card if you don't have cash?

Back

Yes, a debit card can be used to make purchases even if you don't have cash, as it withdraws directly from your bank account.

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How is using a Debit Card similar to using a check?

Back

Using a debit card is similar to using a check because both withdraw money directly from your bank account without borrowing.

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What is the main difference between a Debit Card and a Credit Card?

Back

A debit card uses your own money from your bank account, while a credit card allows you to borrow money up to a certain limit.

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What does it mean when a purchase with a Credit Card is a loan?

Back

It means that the cardholder is borrowing money to make the purchase and must pay it back later, often with interest.

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What is a key benefit of using a Credit Card?

Back

A key benefit is the ability to make purchases without having cash on hand and the option to pay later.

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What is a key benefit of using a Debit Card?

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A key benefit is that it helps you spend only what you have in your bank account, preventing overspending.

Front

What is a common feature of both Debit and Credit Cards?

Back

Both cards are convenient to use for making purchases without cash.