Debit Cards Vs. Credit Cards 22

Front

What is a credit card?

Back

A credit card is a card that allows you to borrow money from a bank to make purchases, which you must pay back later.

Front

What is a debit card?

Back

A debit card is a card that pulls money directly from your bank account when you make a purchase.

Front

What is the main difference between a debit card and a credit card?

Back

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

Front

What is interest in relation to credit cards?

Back

Interest is a fee charged by credit card companies for borrowing money, usually expressed as a percentage.

Front

How can you avoid paying interest on a credit card?

Back

You can avoid paying interest by paying your balance in full every month.

Front

What happens if you only pay the minimum payment on a credit card?

Back

If you only pay the minimum payment, you will incur interest on the remaining balance, and it will take longer to pay off your debt.

Front

What is a checking account?

Back

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

Front

Can you spend more money than you have in your checking account with a debit card?

Back

No, you cannot spend more money than you have in your checking account with a debit card.

Front

What is a bank loan?

Back

A bank loan is money borrowed from a bank that must be paid back with interest.

Front

What is a transaction fee?

Back

A transaction fee is a charge that may be applied when using a credit card for purchases.