Credit vs. Debit cards

1. Anna would like to purchase a new mountain bike that costs $600. She only has $300 in her checking account now. Which of the following statements is true?

• She can use her debit card to pay for the bike and pay off the debit card over time.

• She can use her debit card to buy the bike now using funds from her bank account.

• She can use her credit card to buy the bike now and pay it off over a period of time.

• All of the above are true.

Javier bought a new backpack online. He'll actually pay the balance at the end of the month.

​ (a)  

• Credit
• Debit

Matt stopped for coffee on her way to work and paid by swiping her card. The cost of her coffee was immediately taking out of her checking account.

• Credit Card

• Debit Card

Pete purchased a new set of sneakers for his home. The speakers cost $400 after taxes, but he actually paid $453.12 by the time they were paid off because of interest.

• Credit Card

• Debit Card

Jamie is saving his money to buy a ring. She swipes her card and decides that she will pay the rest of her ring over time.

​ (a)  

• Credit Card
• Debit Card

Nora attempts to purchase a new purse by swiping her card. However, the transaction is declined because she does not have enough in her account to pay for the cost of the purse.

​ (a)  

• Debit Card
• Credit Card

Mr. Thomas checks out at the store by swiping his card; he also receives $20 cash back from the clerk.

• Credit Card

• Debit Card

Liam would like to purchase a new pair of golf clubs, but he does not have enough money in his bank account. Which of these is a possibility for Liam?

• He can use his debit card to buy the golf clubs and pay interest on the purchase.

• He can use his credit card to buy the golf clubs now and pay for them over time.

• He can use his debit card to pay for the golf clubs directly from his bank account.

• He can use his credit card to buy the golf clubs and pay the overdraft fee.

Determine if each statement describes a credit card, debit card, or both.

Groups:

(a) Credit Card

,

(b) Debit Card

,

(c) BOTH

• Small plastic card

• Interest is charged if balance is not paid

• Money is BORROWED

• Used to purchase goods/services

• A bill is sent at the end of the month

• PIN is needed

• Your OWN money

• You can get cashback

This method of payments lets you take money out of the ATM and get cashback at various stores.

​ (a)  

• Debit card
• Credit card