Credit Card Credit Card vs. vs. Debit CardDebit Card

Debit CardsDebit Cards

• Also called “check cards”– Works just like writing a check

• Deducts money from your checking account

Debit Card InfoDebit Card Info

• Black magnetic strip on the back of your debit card– Name– Account Number– Personal Identification Number (PIN #)– Account Balance or Financial Limits

Uses of Debit CardsUses of Debit Cards

• Make deposits into your account

• Withdraw money from ATM machines– Watch out for fees!!!!

ConveniencesConveniences

• Carry around less stuff– Don’t need to carry cash or check book

• Checkout usually goes faster

• Easy access to money

• Knowledge of financial information

Important ThingsImportant Things

• Always keep in a safe place

• RECORD ALL TRANSACTIONS!!!

• Watch out for fees!

• Treat like a blank check

• Remember your PIN

• Be aware of surroundings

• Report lost or stolen cards

Credit CardsCredit Cards

• Borrowing money from the company who issued you the card

• Purchases are totaled and sent in a monthly bill

Credit LimitCredit Limit

• When issued a credit card, you will have a credit limit.– Maximum amount you can spend

• Each purchase is deducted from your credit limit

Important ThingsImportant Things

• Do not spend over your limit

• Keep your card in a safe place

• Keep all receipts

• Pay off your entire balance each month

• Know all rules and regulations

Similarities Similarities

• Both are convenient and time saving

• Both can be used to make purchases

• Always keep track of purchases

DifferencesDifferences

• Debit Card– Deduct from checking

account– No interest added– Will not let you go over

limit– Withdraw cash from

ATM– Record transitions in

check register

• Credit Card– Borrow money from

company– Interest is added if not

paid fully on time– Will let you purchase

over the limit – fees– Keep all receipts – Purchases totaled on

monthly statement