Credit Cards vs. Debit Cards: Flashcard 1

Front

When you use a debit card, where does the money come from to pay for the purchase?

Back

Your checking account

Front

True or False: If you don't pay your credit card bill on time, you will have to pay extra money called interest.

Back

TRUE

Front

A credit card is:

Back

A card that lets you borrow money from the bank to buy things.

Front

How often do you typically need to pay your credit card bill?

Back

Once a month

Front

Which of the following is a benefit to using a credit card? You can earn points and rewards on your purchase.

Back

You can earn points and rewards on your purchase.

Front

True or False: If you use a debit card, you can only spend money that you actually have in your bank account.

Back

TRUE

Front

In which of the following situations should you use a debit card, rather than a credit card? Buying something online from a website you don't trust. Buying lunch when you have enough money in your account. Buying a new sweatshirt for $75 but you only have $50 in your checking account. You want to pay for something at the end of the month.

Back

Buying lunch when you have enough money in your account.

Front

Which card directly withdraws money from your bank account at the time of transaction?

Back

Debit card