Understanding Debit Cards

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

• A credit card uses your own money.

• A credit card does not require repayment.

• A debit card is linked directly to your bank account.

• A debit card allows you to borrow money from the bank.

Why might someone choose to use a debit card instead of cash?

• Debit cards allow you to spend more than you have.

• Debit cards are less secure than cash.

• Debit cards are not accepted online.

• Debit cards are more convenient and safer to carry.

How can using a debit card help with financial control?

• By building your credit history.

• By offering cashback rewards.

• By helping you manage spending within your available funds.

• By allowing you to spend more than your account balance.

What is a potential risk of using a debit card?

• It offers high-interest rates on purchases.

• It can help build your credit history.

• It can lead to overspending beyond your means.

• It can result in a compromised account if stolen.

Which of the following is a wise practice when using a debit card?

• Using it to build credit history.

• Ignoring your account balance.

• Sharing your card details with friends.

• Reporting lost cards immediately.