Credit vs Debit Review

True or False using your credit card will deduct money out of your checking account?

• True

• False

What is a similarity between debit and credit cards?

• Both are small and made of plastic

• Both require you to use a PIN #

• Both are paid when the bill arrives.

• Both charge interest fees on unpaid balances

(a)   card allows you to make purchases and pay for them later. Usually at the end of the month when you receive a bill/statement for your purchases.

(a)   card can purchase goods and services, and the money is immediately deducted from your bank account?

Joey bought a new helmet from the bike shop. He will receive his bill at the end of the month. Which type of card did he use?

(a)  

Which type of card do you have to type in a pin number to use?

(a)  

Where is the security code located on a card?

(a)  

A Debit Card is…

• is borrowed money you have to pay back later.

• is linked to a savings or checking account.

• has interest charges.

• is money in cash form

Which card has an expiration date on it?

• Credit card

• Both

• Debit card

• Neither

One thing the credit card company looks at before approving you for a credit card is?

• Where you live

• What you plan to buy

• Your credit report

• What you do for a living