Credit Card vs. Debit Card

Debit Cards Also called “check cards” –Works just like writing a check Deducts money from your checking account

Debit 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 Cards Make deposits into your account Withdraw money from ATM machines –Watch out for fees!!!!

Conveniences 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 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 Cards Borrowing money from the company who issued you the card Purchases are totaled and sent in a monthly bill

Credit 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 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 Both are convenient and time saving Both can be used to make purchases Always keep track of purchases

Differences 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