Debit and Credit Cards: Understanding the Differences

What is a key advantage of using a debit card for everyday purchases?

• It allows you to spend more than you have.

• It builds your credit score.

• It helps you stick to your budget by limiting spending to available funds.

• It offers travel insurance benefits.

Why might someone choose to use a credit card despite the risk of debt?

• They automatically pay off your balance each month.

• They are accepted everywhere without fees.

• They offer rewards and help build credit if used responsibly.

• Credit cards have no spending limits.

What is a potential downside of not paying off your credit card balance in full each month?

• You lose access to your checking account.

• Your credit score automatically improves.

• Interest charges can accumulate, increasing your debt.

• You receive fewer rewards.

In terms of security, how do credit cards generally compare to debit cards?

• Debit cards are more secure for online purchases.

• Both offer the same level of fraud protection.

• Debit cards provide better international protection.

• Credit cards offer superior fraud protection features.

When traveling internationally, why might a credit card be more advantageous than a debit card?

• Credit cards are more widely accepted and offer additional benefits.

• Debit cards offer better exchange rates.

• Debit cards provide emergency assistance services.

• Credit cards have lower international fees.