Credit vs. Debit Cards

Front

What is a debit card?

Back

A debit card is a payment card that allows you to access the money in your bank account directly to make purchases.

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.

Front

How does a debit card work?

Back

A debit card pulls money directly from your bank account when you make a purchase.

Front

How does a credit card work?

Back

A credit card allows you to borrow money up to a certain limit to make purchases, which you pay back later.

Front

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

Back

You may incur late fees and interest charges on the unpaid balance.

Front

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

Back

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

Front

What is a common use for a credit card?

Back

Credit cards are often used for online shopping, renting cars, or booking hotel rooms.

Front

What is a common use for a debit card?

Back

Debit cards are commonly used for everyday purchases, such as groceries and gas.

Front

What is an overdraft fee?

Back

An overdraft fee is a charge that may occur if you spend more money than you have in your bank account with a debit card.

Front

What is a credit limit?

Back

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