Debit vs Credit Cards

Front

What is a Debit Card?

Back

A debit card is a payment card that deducts money directly from a checking account to pay for a purchase.

Front

What is a Credit Card?

Back

A credit card allows users to borrow money from a financial institution up to a certain limit to make purchases.

Front

What does PIN stand for in relation to debit cards?

Back

PIN stands for Personal Identification Number, a security code used to authorize transactions.

Front

Can you get cash back with a debit card?

Back

Yes, users can request cash back at the time of purchase with a debit card.

Front

What is a credit limit?

Back

A credit limit is the maximum amount of money that can be borrowed on a credit card.

Front

How are transactions recorded for credit and debit cards?

Back

Transactions for both credit and debit cards are recorded in monthly statements.

Front

What happens if you don't pay your credit card balance in full?

Back

If you don't pay your credit card balance in full, you may incur interest charges on the remaining balance.

Front

Is it possible to overdraw your account with a debit card?

Back

Yes, if overdraft protection is not set up, you cannot spend more than what is in your account with a debit card.

Front

What is the main difference between debit and credit cards?

Back

The main difference is that debit cards withdraw money directly from your bank account, while credit cards allow you to borrow money.

Front

What is a monthly statement?

Back

A monthly statement is a summary of all transactions made with a credit or debit card during the month.

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CCSS.RL.6.7

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