Credit Card v Debit Card

The video tutorial explains the differences between credit and debit cards. It covers how debit cards are linked directly to bank accounts, while credit cards involve borrowing money from a bank or credit card company. The tutorial discusses the risks of debt with credit cards, the concept of overdrafts, and the importance of managing spending. It also highlights the interest and fees associated with credit cards, as well as the benefits such as building a credit score and earning rewards. The tutorial uses a narrative involving an aunt's experience to illustrate these points.

What did the narrator's aunt say about the appearance of credit and debit cards?

• They look different and work the same.

• They look the same but work differently.

• They are identical in both appearance and function.

• They are different in both appearance and function.

How is a debit card linked to your finances?

• It is linked directly to your bank account.

• It is linked to a rewards program.

• It is linked to a credit card company.

• It is linked to a loan provider.

What must you do to obtain a credit card?

• Provide personal details and apply.

• Simply request one from your bank.

• Automatically receive one with a bank account.

• Purchase it from a store.

What is a potential risk of using a credit card excessively?

• You can get into debt.

• You might lose your card.

• You will earn fewer rewards.

• Your bank account will be closed.

What is interest in the context of credit cards?

• A fee for using a debit card.

• A discount on purchases.

• A percentage of the amount borrowed.

• A reward for using the card.

How can a credit card benefit your financial profile?

• By eliminating all fees.

• By building a good credit score.

• By reducing your bank balance.

• By automatically increasing your income.

What is one advantage of using a credit card over a debit card?

• Credit cards are linked directly to your bank account.

• Credit cards are easier to obtain.

• Credit cards offer rewards like travel points.

• Credit cards have no interest rates.