What is the difference between debit and credit cards?

Debit and credit cards are both types of plastic money, but they work differently. A debit card is linked to your bank account, and when you use it to make a purchase, the funds are immediately withdrawn from your account. You can only spend the amount that you have in your account, so it is similar to using cash.

On the other hand, a credit card is a type of loan that you can use to make purchases. When you use a credit card, the funds are not immediately withdrawn from your account. Instead, the credit card issuer pays for the purchase on your behalf, and you are required to repay the amount borrowed (plus any interest or fees) at a later date. This allows you to make purchases even if you don't have the funds in your account, but it also means that you are borrowing money and will have to pay it back with interest.