Question

Describe the difference between a debit card and a credit card. List an advantage and

disadvantage for each card.

Answer 1

When using a debit card, the cost of your purchase will be deducted from your checking account in real time. On the other hand, when you use a credit card the amount will be charged to your line of credit. Which means you will pay the bill at a later time. An advantage of using a debit card is that you can avoid getting into debt or lower your chances. Since you are paying real time, this can help you stay under your budget. A disadvantage for using a debit card is that it doesn’t improve your credit score. For Credit cards, an advantage is that you will have more time to pay. This means that you have a grace period in which you can gather up money to pay. But, a big disadvantage of credit cards is that you can end up overspending. Now, you can avoid this by being smart but you never know. Since you have time to pay, you can end up overspending.

Step-by-step explanation:

Answer 2

When using a debit card, the cost of your purchase will be deducted from your checking account in real time. On the other hand, when you use a credit card the amount will be charged to your line of credit. Which means you will pay the bill at a later time. An advantage of using a debit card is that you can avoid getting into debt or lower your chances. Since you are paying real time, this can help you stay under your budget. A disadvantage for using a debit card is that it doesn’t improve your credit score. For Credit cards, an advantage is that you will have more time to pay. This means that you have a grace period in which you can gather up money to pay. But, a big disadvantage of credit cards is that you can end up overspending. Now, you can avoid this by being smart but you never know. Since you have time to pay, you can end up overspending.

Step-by-step explanation: