Debit vs Credit

Front

What is a checking account?

Back

An account where money can easily be deposited and withdrawn by means of checks, debit cards, and ATM transactions.

Front

What is a debit card?

Back

A card that allows you to withdraw money directly from your checking or savings account.

Front

What is a credit card?

Back

A card that allows you to borrow money from a bank to make purchases, which you must pay back later.

Front

What happens if you don't pay your credit card bill on time?

Back

You can be charged a late fee.

Front

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

Back

Report it immediately to the bank.

Front

Can you earn interest on a debit card?

Back

No, debit cards do not earn interest.

Front

Can you earn interest on a credit card balance?

Back

Yes, interest may be charged on unpaid balances.

Front

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

Back

A debit card withdraws money directly from your bank account, while a credit card allows you to borrow money.

Front

What is an ATM?

Back

An Automated Teller Machine that allows you to withdraw cash from your bank account.

Front

What is a transaction?

Back

An instance of buying or selling something, or the act of transferring money.