Debit/Credit Cards

You borrow money from a lending institution and pay back some or all of it each month

• Credit Card

• Debit Card

Money comes directly out of your checking account.

• Debit Card

• Credit Card

When your card is used, the credit card company pays the vendor for the purchase.

• Debit card

• Credit card

When your card is used, the funds are transferred from your bank account.

• Debit card

• Credit card

You have a limit on how much you can borrow, typically based on your creditworthiness.

• Debit card

• Credit card

You can access only the money available in your account or you may face potential fees.

• Debit card

• Credit card

What are some potential charges that you could have if you use a credit card?

• Interest is charged if you don’t pay your bill in full.

• Fees may be given for withdrawing more money than what is in your account

• Transaction fee

• all of the above

What are some potential charges that you could have if you use a debit card?

• Interest is charged if you don’t pay your bill in full.

• Fees may be given for withdrawing more money than what is in your account

Advantage of using a credit card?

• Many cards offer rewards such as frequent flyer miles, cash back or gift cards.

• Safer than using a debit card.

• Credit cards have fraud protection

• all of the above

On-time payments could bolster your credit score.

• credit card

• debit card