Credit and Debit Cards

Front

What is a Credit Card?

Back

A credit card is a payment card that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services, with the obligation to pay back the borrowed amount, usually with interest.

Front

What is a Debit Card?

Back

A debit card is a payment card that deducts money directly from a checking or savings account to pay for purchases.

Front

What happens at the end of the month with a Credit Card?

Back

The cardholder receives a bill detailing the total amount spent during the month, which must be paid back.

Front

How can you avoid paying interest on a Credit Card?

Back

By paying the balance in full every month before the due date.

Front

What are late fees?

Back

Late fees are charges applied when a payment is not made by the due date, commonly associated with credit cards.

Front

Can you use a Debit Card if you don't have cash?

Back

Yes, a debit card can be used to make purchases directly from your bank account.

Front

What is the main difference between a Credit Card and a Debit Card?

Back

A credit card allows borrowing money up to a limit, while a debit card uses the funds already available in the user's bank account.

Front

What is a minimum payment on a Credit Card?

Back

The minimum payment is the smallest amount a cardholder can pay to keep the account in good standing, but paying only this amount can lead to interest charges.

Front

What is a checking account?

Back

A checking account is a bank account that allows for easy access to funds for daily transactions, typically using checks or debit cards.

Front

What is a savings account?

Back

A savings account is a bank account that earns interest on the deposited funds and is used for saving money.