Credit or Debit?

Front

What is a debit card?

Back

A debit card is a payment card that is directly linked to your bank account, allowing you to spend only the money you have.

Front

What is a credit card?

Back

A credit card is a payment card that allows you to borrow money from the bank up to a certain limit to make purchases.

Front

How does a debit card work?

Back

When you use a debit card, the money is immediately deducted from your bank account.

Front

How does a credit card work?

Back

When you use a credit card, you borrow money from the bank to make a purchase, which you must 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

What is interest on a credit card?

Back

Interest is the cost of borrowing money, usually expressed as a percentage, that you pay if you don't pay off your balance in full.

Front

What is an overdraft?

Back

An overdraft occurs when you spend more money than you have in your bank account, which can happen with a debit card if your bank allows it.

Front

What are the benefits of using a debit card?

Back

Benefits include avoiding debt, easy tracking of spending, and no interest charges.

Front

What are the benefits of using a credit card?

Back

Benefits include building credit history, rewards programs, and the ability to make larger purchases.

Front

What is a credit limit?

Back

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