ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a credit card can be used to borrow money or make purchases, a debit card uses your own money.
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you can borrow money with both
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credit card is connected to your personal bank account and a debit card is used for borrowing money
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with a debit card you have to pay the money back
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Detailed explanation-1: -A debit card uses funds from your bank account while a credit card is linked to a credit line that can be paid back later, which gives you more time to pay for your purchases. A customer’s credit line depends on their creditworthiness.
Detailed explanation-2: -What’s the difference? When you use a debit card, the funds for the amount of your purchase are taken from your checking account almost instantly. When you use a credit card, the amount will be charged to your line of credit, meaning you will pay the bill at a later date, which also gives you more time to pay.
Detailed explanation-3: -Terms in this set (10) The main difference between debit and credit cards is: A debit card requires you to have the cash available in the account; a credit card does not.
Detailed explanation-4: -Debit cards and credit cards A debit card is used to make a purchase with one’s own money. A credit card is used to make a purchase by borrowing money. From the bank’s point of view, when a debit card is used to pay a merchant, the payment causes a decrease in the amount of money the bank owes to the cardholder.
Detailed explanation-5: -Bottom line: You can use both your debit and credit cards for everyday purchases depending on your personal preference, but stick to in-person transactions for your debit card to ensure safety. Having both and using each responsibly (and strategically) will help keep your financial life in good shape.