Credit or Debit?

What is a debit card?

• A payment card that pulls money directly from your bank account when you make a purchase.

• A card that allows you to borrow money from a bank to make purchases.

• A card used exclusively for online shopping.

• A type of credit card that offers rewards on purchases.

What is a credit card?

• A payment card that allows you to borrow money from a bank to make purchases, which you must pay back later.

• A card that provides discounts on purchases at specific stores.

• A type of debit card that withdraws money directly from your bank account.

• A card used exclusively for online shopping and transactions.

What is a credit limit?

• The minimum amount you can borrow on a credit card.

• The maximum amount of money you can borrow on a credit card.

• The interest rate applied to your credit card balance.

• The fee charged for late payments on a credit card.

What does it mean to 'pay off' a credit card?

• To pay only the minimum amount due on the card.

• To pay the full balance owed by the due date.

• To transfer the balance to another card.

• To close the credit card account permanently.

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

• You may incur fees and interest charges on the unpaid balance.

• Your credit score will automatically improve.

• You will receive a bonus reward from your credit card company.

• Your account will be closed immediately.

What is a common use for a debit card?

• To make everyday purchases like groceries or gas.

• To withdraw cash from an ATM only.

• To earn rewards points on purchases.

• To transfer money internationally.

Can you spend more money than you have with a debit card?

• Yes, you can spend more than your balance.

• No, you can only spend the amount available in your bank account with a debit card.

• You can spend up to a certain limit set by the bank.

• Yes, but only if you have overdraft protection.

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

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

• A debit card is linked to a savings account, while a credit card is linked to a checking account.

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

• A debit card can only be used for online purchases, while a credit card can be used anywhere.

How does a debit card affect your bank account?

• It adds money to your bank account.

• It subtracts money directly from your bank account.

• It transfers money to a savings account.

• It charges a fee to your account.

Is it possible to have a negative balance with a debit card?

• Yes, many banks allow it

• No, most banks do not allow you to spend more than what you have in your account.

• Yes, but only under certain conditions

• No, but some banks offer overdraft protection