Comparing Credit and Debit Cards

The video tutorial compares credit and debit cards, focusing on their benefits and drawbacks. Credit cards allow borrowing money, which can help build credit history but also lead to debt. Debit cards use existing funds from a bank account, preventing overspending and making tracking easier.

What is the primary focus when comparing credit and debit cards?

• The interest rates of both cards

• The benefits of both cards

• The application process for both cards

• The history of both cards

Which of the following is a benefit of using a credit card?

• You can only spend what you have

• You can build a credit history

• You avoid going into debt

• You don't receive a bill

What is a potential downside of using a credit card?

• You can only use it at certain stores

• You need to have money in your account

• You might go into debt

• It doesn't help build credit history

How does a debit card differ from a credit card in terms of spending?

• It allows you to spend more than you have

• It uses borrowed money

• It requires a monthly bill

• It uses your own money

What is an advantage of using a debit card?

• It requires a credit check

• It allows for unlimited spending

• It prevents overspending

• It helps build a credit history