Debit vs. Credit

What’s your Credit Card IQ? True or False Credit cards are accepted as cash by stores Most credit cards have a credit limit If you pay your credit card in full by the due date, then you will not owe any interest There is no penalty if you pay your balance after the due date If you pay the minimum monthly payment, you wont owe any interest Credit card companies charge merchants a percentage of the price of anything purchased with a credit card

Debit vs. Credit Debit Cards Credit Cards Connected to your bank account Use a PIN to make a purchase The visa logo allows for your to sign like credit but it is still take out of your banks account, just a few days later Do not get billed Credit Cards Deal with another company that will bill you for the purchases you make Not tied to a bank

What Sets Credit Cards Apart from One Another? Interest Rates Credit Limits Reputation Rewards Availability

Credit Cards Protection against theft of cash Advantages & Disadvantages of credit cards Protection against theft of cash Allows you to buy now and pay later Helpful in emergencies Easy to buy beyond your means Spend future money Buy on impulse Interest charges

2 Types of Credit Secured Product serves as collateral Unsecured Promise to pay based off your signature

Finance charge (Interest) Transaction fees Other hidden fees Costs involved Annual fee Finance charge (Interest) Transaction fees Other hidden fees