Credit vs Debit: Know the Difference

What is one benefit of using a credit card instead of a debit card?

• You can earn rewards or cashback.

• You can only spend the money you have.

• You avoid paying interest.

• You have to pay immediately.

Which of the following is a risk associated with using credit cards?

• You can build a credit history.

• You might spend more than you can afford.

• You can only use the money in your account.

• You avoid overdraft fees.

How does using a debit card differ from using a credit card?

• Debit cards allow you to borrow money.

• Debit cards use money directly from your bank account.

• Debit cards offer rewards and points.

• Debit cards charge interest on purchases.

What is a common feature of credit cards that is not typically found with debit cards?

• Direct access to your bank account.

• The ability to earn travel miles.

• No spending limit.

• Immediate payment requirement.

Why might someone choose to use a credit card for a large purchase?

• To avoid paying any fees.

• To earn rewards and pay over time.

• To ensure they only spend what they have.

• To avoid interest charges.

What is a potential consequence of not paying your credit card bill on time?

• You earn more rewards.

• You build a better credit score.

• You may have to pay late fees and interest.

• You avoid all charges.

Which of the following is a reason to use a debit card instead of a credit card?

• To build a credit history.

• To avoid spending more than you have.

• To earn cashback on purchases.

• To pay for items over time.

What is one way credit cards can help you financially if used responsibly?

• They can help you avoid all types of fees.

• They can help you build a good credit score.

• They can prevent you from spending money.

• They can eliminate all your debts.

How can using a credit card affect your spending habits?

• It always limits your spending to your bank balance.

• It can encourage spending beyond your means.

• It prevents you from making large purchases.

• It ensures you save more money.

What is a key difference in how debit and credit cards impact your finances?

• Debit cards help you build credit history.

• Credit cards can charge interest on unpaid balances.

• Debit cards offer more rewards than credit cards.

• Credit cards require immediate payment.