Checking Accounts, Debit Cards, and Credit Cards (Week 1)

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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 pay back later.

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What is a Debit Card?

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A debit card is a payment card that withdraws money directly from your checking or savings account when you make a purchase.

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What does 'buy now, pay later' mean?

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It means you can make a purchase and defer payment to a later date, typically associated with credit cards.

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What is the main advantage of using a Credit Card in emergencies?

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Credit cards provide immediate access to funds, allowing you to make purchases even if you don't have cash on hand.

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What happens if you don't pay your Credit Card balance in full?

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If you don't pay your balance in full, you may incur interest charges on the remaining amount.

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Can you use a Debit Card for online purchases?

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Yes, debit cards can be used for online purchases as long as they are linked to a checking account.

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

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

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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 checking account?

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A checking account is a bank account that allows you to deposit and withdraw money, typically used for daily transactions.

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What is a savings account?

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A savings account is a bank account that earns interest on your deposits, intended for saving money.