Credit vs. Debit Cards

Front

What is a debit card?

Back

A debit card is a payment card that allows you to access funds directly from your bank account to make purchases.

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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

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

Back

If you don't pay your credit card balance on time, you may incur late fees and interest charges.

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Can you use a debit card to withdraw cash from an ATM?

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Yes, you can use a debit card to withdraw cash from an ATM, as it accesses your bank account directly.

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What is cash back in relation to debit cards?

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Cash back is a feature that allows you to receive a small percentage of your purchase amount back when you use your debit card.

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What is the main difference between a debit card and a credit card?

Back

The main difference is that a debit card uses your own money from your bank account, while a credit card allows you to borrow money.

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What is a minimum balance requirement for a debit card?

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A minimum balance requirement is the least amount of money you must keep in your bank account to avoid fees.

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Why might someone choose a credit card over a debit card?

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Someone might choose a credit card for benefits like rewards, cash back, or to build credit history.

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What is a common use for a credit card?

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A common use for a credit card is to make online purchases or to book travel accommodations.

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What is an overdraft fee?

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An overdraft fee is a charge that occurs when you spend more money than you have in your bank account using a debit card.