credit vs debit

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What is a debit card?

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A debit card is a payment card that is directly linked to your bank account, allowing you to spend only the money you have in that account.

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What is a credit card?

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A credit card is a payment card that allows you to borrow money from a bank or financial institution up to a certain limit to make purchases.

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

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If you don't pay your credit card bill on time, you may incur interest charges and late fees, and it can negatively affect your credit score.

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Can you withdraw cash using a debit card?

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Yes, you can withdraw cash from an ATM using a debit card, as it is linked to your bank account.

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

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The main difference is that a debit card uses your own money from your bank account, while a credit card allows you to borrow money.

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What is a minimum balance requirement for a debit card?

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A minimum balance requirement is the least amount of money you must keep in your bank account to avoid fees or to keep the debit card free.

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What does it mean to have a credit limit?

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

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What is interest in terms of credit cards?

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Interest is the cost of borrowing money on a credit card, usually expressed as a percentage of the amount owed.

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What is a transaction fee?

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A transaction fee is a charge that may apply when you use your debit or credit card for purchases.

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What is a signature required for?

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A signature may be required when making a purchase with a credit card or sometimes with a debit card to verify your identity.