Credit and Debit Cards

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What is a Credit Card?

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A credit card is a payment card that allows consumers to borrow funds from a pre-approved limit to pay for goods and services, with the agreement to pay back the borrowed amount later.

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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 consumer's checking account to pay for a transaction.

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What is a Checking Account?

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A checking account is an account where money can easily be deposited and withdrawn by means of checks, debit cards, and ATM transactions.

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What happens at the end of the month with a Credit Card?

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You receive a bill for the total amount spent during the month, which you must pay back.

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Can you spend more than you have in your account with a Credit Card?

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Yes, you can purchase items now and pay for them later, up to your credit limit.

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What does it mean to have a balance on a Credit Card?

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It means the amount of money you owe to the credit card company for purchases made using the card.

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

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A credit card allows you to borrow money up to a limit, while a debit card uses your own money from your checking account.

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What is an ATM?

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An ATM (Automated Teller Machine) is a machine that allows you to withdraw cash, deposit money, and check your account balance using your debit or credit card.

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What is a transaction?

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A transaction is an exchange or transfer of money for goods or services.

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What does it mean to 'pay later' with a Credit Card?

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It means you can make a purchase now and defer the payment to a later date, usually with interest.