Credit Card vs. Debit Card

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. The cardholder must pay back the borrowed amount, usually with interest, at a later date.

Front

What is a Debit Card?

Back

A debit card is a payment card that deducts money directly from the cardholder's bank account to pay for purchases. It does not involve borrowing money.

Front

What happens if you don't pay your Credit Card bill on time?

Back

If you don't pay your credit card bill on time, you may incur late fees and your credit score may be negatively affected.

Front

Can using a Credit Card affect your credit score?

Back

Yes, using a credit card can affect your credit score based on your payment history, credit utilization, and overall credit management.

Front

What is interest in the context of Credit Cards?

Back

Interest is the cost of borrowing money on a credit card, usually expressed as an annual percentage rate (APR). If the balance is not paid in full, interest is charged on the remaining amount.

Tags

CCSS.7.RP.A.3

Front

What is a loan in relation to Credit Cards?

Back

A loan in relation to credit cards refers to the money borrowed from the credit card issuer that must be repaid, often with interest.

Front

What are late fees?

Back

Late fees are charges applied when a credit card payment is not made by the due date.

Front

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

Back

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

Front

What is a credit limit?

Back

A credit limit is the maximum amount of money that can be borrowed on a credit card.

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What does it mean to 'charge' on a Credit Card?

Back

To 'charge' on a credit card means to make a purchase using the credit card, which adds to the amount owed to the credit card issuer.

Tags

CCSS.RI.6.4

CCSS.RI.5.10

CCSS.RI.7.4

CCSS.RI.4.10

CCSS.RI.8.4