Credit Card vs. Debit Card

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What is a checking account?

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An account where money can easily be deposited and withdrawn by means of checks, debit cards, and ATM transactions.

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What does a debit card do?

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A debit card withdraws money directly from a checking or savings account when a purchase is made.

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What does a credit card do?

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A credit card allows you to make purchases on credit, meaning each purchase is a loan that you repay later.

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

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You can be charged a late fee if the payment is not made within the due date.

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

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Report it immediately to your bank or card issuer.

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

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A debit card uses your own money from your bank account, while a credit card allows you to borrow money up to a certain limit.

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Can you earn rewards with a credit card?

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Yes, many credit cards offer rewards programs for purchases made with the card.

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Is it possible to overdraw your account with a debit card?

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Yes, if you spend more than what is in your account, you may incur overdraft fees.

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What is a credit limit?

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A credit limit is the maximum amount of money you can borrow on a credit card.

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What is an interest rate on a credit card?

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An interest rate is the cost of borrowing money on a credit card, usually expressed as a percentage.