Credit vs. Debit Cards

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What is a debit card?

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

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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.

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How does a debit card work?

Back

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

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How does a credit card work?

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

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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.

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

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

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What is a common use for a credit card?

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

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What is a common use for a debit card?

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

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What is an overdraft fee?

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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.

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What is a credit limit?

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