Debit vs. Credit Cards
01.The plastic Twin Battle
Debit cards and credit cards look exactly the same—they are small plastic cards with numbers and chips. But they work in completely opposite ways! A debit card uses YOUR money. When you buy something, the bank instantly takes that money out of your checking account. If you don't have the money, the card won't work.
02.Credit is a Loan
A credit card uses the BANK'S money. When you swipe a credit card, the bank pays for you, and you promise to pay the bank back later. It's like a micro-loan! Once a month, the bank sends you a bill for all the things you bought.
03.The Golden Rule of Credit
If you pay the entire bill on time, the bank doesn't charge you any interest. But if you only pay a little bit of the bill, the bank will charge you a very high interest rate on the rest. Credit cards can be useful, but they can be dangerous if you aren't careful!