What is the difference between a credit card and a debit card?

A credit card and a debit card are both plastic cards that can be used to make purchases or withdraw cash. However, they work differently.

A debit card is linked to a checking account, and when you use it to make a purchase, the funds are deducted directly from your account. You can only spend the amount of money that is in your account, and you may be charged an overdraft fee if you try to spend more than you have.

A credit card, on the other hand, is a line of credit that you can use to make purchases. When you use a credit card to make a purchase, you are essentially borrowing money from the card issuer. You will need to pay back the amount you borrowed, along with any interest and fees that may apply. You are usually given a grace period of around 25 days to pay off your balance without incurring interest charges.

Overall, the main difference between a credit card and a debit card is that a credit card allows you to borrow money while a debit card only allows you to spend the money you already have.