Debit vs. Credit Cards

A debit card takes money from

• a savings account

• a checking account

• a credit card company

• a loan officer

Which is an advantage of a credit card? Choose two

• It affects your credit score.

• It charges interest.

• It allows you to carry less cash.

• You get to use your own money.

Money paid for the use of money is called

• savings

• interest

• credit

• none of the above

Credit cards and debit cards work the same way

• True

• False

The most logical way to pay for a new car would be with

• cash

• debit card

• credit card

• a bank loan

Which of these is the most logical reason to own a credit card?

• because you feel like it

• to make random purchases

• for emergencies

• to impress your friends

Using a debit card affects your credit score.

• True

• False

A credit card can lead to

• unnecessary spending

• greater debt

• more stress

• all of the above

A store credit card can be used

• anywhere

• only at that particular store

• only on weekends

• none of the above

A credit card is essentially a(n)

• investment

• cash option

• loan

• checking account