Credit Card vs. Debit Card

Front

What is a checking account?

Back

An account where money can easily be deposited and withdrawn by means of checks, debit cards, and ATM transactions.

Front

What does a debit card do?

Back

A debit card withdraws money directly from a checking or savings account when a purchase is made.

Front

What does a credit card do?

Back

A credit card allows you to make purchases on credit, meaning each purchase is a loan that you repay later.

Front

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

Back

You can be charged a late fee if the payment is not made within the due date.

Front

What should you do if your card is lost or stolen?

Back

Report it immediately to your bank or card issuer.

Front

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.

Front

Can you earn rewards with a credit card?

Back

Yes, many credit cards offer rewards programs for purchases made with the card.

Front

Is it possible to overdraw your account with a debit card?

Back

Yes, if you spend more than what is in your account, you may incur overdraft fees.

Front

What is a credit limit?

Back

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

Front

What is an interest rate on a credit card?

Back

An interest rate is the cost of borrowing money on a credit card, usually expressed as a percentage.

Tags

CCSS.7.RP.A.3