Debit Cards Vs. Credit Cards 22

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 pay back later.

Tags

CCSS.RI.5.3

CCSS.RI.6.3

CCSS.RI.6.5

CCSS.RI.7.3

CCSS.RI.7.5

Front

What is a debit card?

Back

A debit card is a payment card that is directly linked to your bank account, allowing you to spend only the money you have.

Front

What happens when you use a credit card?

Back

When you use a credit card, you are using the bank's money and agreeing to pay it back later.

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What happens when you use a debit card?

Back

When you use a debit card, you are using your own money that is available in your bank account.

Front

Can you spend more than you have with a credit card?

Back

Yes, with a credit card, you can spend more than you currently have in your bank account.

Front

Can you spend more than you have with a debit card?

Back

No, with a debit card, you can only spend the money that is available in your bank account.

Front

What is a key difference between debit and credit cards?

Back

A key 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 credit limit?

Back

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

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What is interest on a credit card?

Back

Interest is the cost of borrowing money on a credit card, usually charged if you do not pay off your balance in full.

Front

What is a transaction fee?

Back

A transaction fee is a charge that may apply when using a credit card for purchases.