Understanding Credit and Debit Cards

What is the fundamental difference between using a credit card and a debit card?

• Credit cards offer rewards, while debit cards do not.

• Credit cards use borrowed money, while debit cards use your own money.

• Debit cards are simpler to use than credit cards.

• Credit cards provide more consumer protection than debit cards.

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

• It is harder to get into excessive debt.

• There is no need to worry about missing a payment.

• Payments can be made after the purchase is completed.

• It offers less consumer protection against fraud.

What is a significant downside of using a credit card?

• It is harder to get into excessive debt.

• There is a lack of consumer protection against fraud.

• It is tempting to overspend and accumulate debt.

• Payments must be made immediately after purchasing.

What is a major disadvantage of using a debit card?

• It is tempting to overspend and go into debt.

• Payments cannot be made after purchasing.

• It offers cash rewards or cash back.

• There is a lack of consumer protection against fraud.