Credit vs Debit Cards

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

• Credit card has a PIN, while debit card does not.

• Debit card allows borrowing money, while credit card uses available funds.

• Debit card has an annual fee, while credit card does not.

• Credit card allows borrowing money, while debit card uses available funds.

How does a credit card work?

• A credit card works by magically providing unlimited funds without any consequences.

• A credit card works by allowing you to spend beyond your means without any repercussions.

• A credit card works by allowing you to borrow money up to a credit limit, which you must pay back with interest if not paid in full each month.

• A credit card works by granting you free money that you never have to repay.

What are the advantages of using a credit card?

• Higher interest rates

• The advantages of using a credit card include building credit history, fraud protection, rewards, convenient online shopping, and a payment grace period.

• Limited acceptance

• No purchase protection

What are the disadvantages of using a credit card?

• Overspending, accumulating debt, risk of identity theft and fraud, extra fees for transactions

• Low interest rates

• Increased financial responsibility

• Cashback rewards

What are the advantages of using a debit card?

• Rewards points accumulation

• Advantages of using a debit card include convenience, expense tracking, cashless transactions, security features, and online transaction ease.

• Unlimited spending limits

• No risk of overspending

What are the disadvantages of using a debit card?

• No risk of overdraft fees

• Unlimited fraud protection

• Limited fraud protection, potential overdraft fees, lack of credit history building, risk of direct access to funds

• Helps in building credit history

Can you build credit history with a debit card?

• Yes

• No

• Maybe

• Sometimes

What is the concept of 'credit limit' in a credit card?

• Credit limit is the number of rewards points earned on a credit card

• Credit limit is the annual fee associated with a credit card

• Credit limit is the interest rate charged on a credit card

• Credit limit is the maximum amount of money a credit card company allows you to borrow on a single card.

How does interest work on credit cards?

• Interest on credit cards is calculated based on the average daily balance and the APR. If the balance is not paid in full, interest will accrue on the remaining balance.

• Interest on credit cards is calculated based on the total balance and the APR.

• Interest on credit cards is waived if the payment is made after the due date.

• Interest on credit cards is fixed and does not change.

What should you do if your credit or debit card is lost or stolen?

• Contact your bank or credit card company to report the loss or theft.

• Go on a shopping spree

• Ignore it and hope it magically reappears

• Throw a party to celebrate