Credit and Debit Cards Flashcard

Front

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

Back

Debit card is linked to bank account, while credit card allows borrowing money

Front

Name one factor that can affect your credit score.

Back

Amount of debt

Front

What are some common rewards and benefits of using a credit card responsibly?

Back

Cash back, travel rewards, points for purchases, building credit history

Front

How does using a debit card affect your bank account balance?

Back

It decreases the bank account balance.

Front

What is one way to improve your credit score?

Back

Make all your payments on time

Front

Why is it important to pay your credit card bill on time?

Back

To avoid late fees, interest charges, and maintain a good credit score.

Front

How can you avoid paying high interest on your credit card purchases?

Back

Pay off your balance in full each month

Front

What is the impact of not paying the minimum amount due on your credit card?

Back

Your credit score may decrease and you may incur late fees.

Front

What is the benefit of using a credit card over a debit card for purchases?

Back

Credit cards offer more protection against fraudulent charges

Front

What happens when you withdraw cash using your credit card?

Back

You will be charged a high interest rate