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Question
State any three differences between a debit card and a credit card.
Distinguish Between
Solution
| Debit card | Credit card | |
| 1. | Money was deducted from your bank account. | Banks issue borrowed funds. |
| 2. | Reduces the likelihood of debt accumulation. | It is capable of accumulating debt. |
| 3. | No interest costs, save for annual payments. | Interest rates and fees vary. |
| 4. | This type of card does not affect your credit score. | Using this type of card may affect your credit score. |
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Differences Between Debit Card and Credit Card
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