Understanding Debit and Credit Cards

What is a key benefit of using a credit card responsibly?

• It positively impacts your credit rating.

• It allows you to avoid all fees.

• It eliminates the need for a bank account.

• It decreases your credit rating.

Which of the following is a feature of debit cards?

• They offer cashback rewards.

• They require borrowing money from the provider.

• They allow you to spend more than your bank balance.

• They use the money directly from your bank account.

What happens if you spend more than your available balance with a debit card without an overdraft?

• You incur a high-interest rate.

• The transaction is declined.

• Your credit rating is negatively impacted.

• You receive a cashback reward.

What is a common use for debit cards?

• Making large purchases on credit.

• Everyday purchases like groceries and petrol.

• Improving credit ratings.

• Earning loyalty rewards.

How do credit cards generally compare to debit cards in terms of fraud protection?

• Credit cards offer lower fraud protection.

• Debit cards offer higher fraud protection.

• Both offer the same level of fraud protection.

• Credit cards offer higher fraud protection.