Debit and Credit Cards Explained

What is the different between debt and credit cards? A debit card is linked to your financial account that deducts money for your purchases. A credit card is a line of credit that lets you borrow money to make purchases.

Debit cards can help you stick to your budget, since you are limited by your available account balance. You won’t pay interest for your purchases, but you may be charged if you overdraft your account.

Credit cards can help you build your credit history and can be a useful backup in case of emergency. You will be charged interest if you don’t pay your bill in full.

To learn more, view the video here.

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