Understanding Debit and Credit Cards

What is a key feature of credit cards that differentiates them from debit cards?

• They do not impact your credit rating.

• They allow you to spend only what you have in your bank account.

• They require immediate payment for purchases.

• They enable purchases on credit, borrowing money from the provider.

How can using a credit card responsibly benefit your financial future?

• It prevents you from borrowing money in the future.

• It positively impacts your credit rating, aiding in future large purchases.

• It decreases your credit rating.

• It has no impact on your credit rating.

What is a common use for debit cards?

• Improving your credit score.

• Making everyday purchases like groceries and petrol.

• Earning cashback rewards.

• Purchasing goods on credit.

What happens when you use a debit card for a purchase?

• You incur interest charges.

• You earn loyalty points.

• The money is borrowed from the card provider.

• The money is transferred directly from your bank account.

Which type of card generally offers higher fraud protection?

• Credit cards

• Debit cards

• Neither offers fraud protection

• Both offer the same level of protection