Debit & Credit Cards

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What is a Debit Card?

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A debit card is a payment card that allows you to withdraw money directly from your checking or savings account to pay for purchases.

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What is a Credit Card?

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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.

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How does a Debit Card work?

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When you use a debit card, the money is taken directly from your bank account.

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How does a Credit Card work?

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

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

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

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Can using a Debit Card affect your credit score?

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No, using a debit card does not affect your credit score because it does not involve borrowing money.

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What is a credit score?

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A credit score is a number that represents your creditworthiness, based on your credit history.

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What is the risk of using a Credit Card?

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The risk of using a credit card includes the potential to accumulate debt if you do not pay off your balance.

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What is the benefit of using a Debit Card?

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The benefit of using a debit card is that it helps you spend only the money you have, reducing the risk of debt.

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What is a minimum payment on a Credit Card?

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A minimum payment is the smallest amount you can pay on your credit card bill to keep your account in good standing.