Debit or Credit- You decide game scenarios

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What is a Debit Card?

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

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What is a Credit Card?

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A credit card is a payment card that allows the holder to borrow funds to pay for goods and services, with the promise to pay back the borrowed amount plus interest.

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What happens when you use a credit card?

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When you use a credit card, you are borrowing money from the credit card issuer to make a purchase, which you will need to pay back later.

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What happens when you use a debit card?

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When you use a debit card, the money is taken directly from your checking account at the time of the purchase.

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What is interest in terms of credit cards?

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Interest is the cost of borrowing money on a credit card, usually expressed as a percentage of the amount owed.

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What is a monthly bill for a credit card?

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A monthly bill for a credit card is a statement that shows all the purchases made with the card during the month and the total amount owed.

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What does it mean to pay off a credit card bill?

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To pay off a credit card bill means to pay the total amount owed by the due date to avoid interest charges.

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What is an example of using a debit card?

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Buying groceries and the total amount is deducted immediately from your checking account.

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What is an example of using a credit card?

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Booking a hotel room and paying for it with a credit card, which will appear on your monthly bill.

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What is the difference between debit and credit transactions?

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Debit transactions withdraw money directly from your bank account, while credit transactions involve borrowing money that must be paid back.