Eli5 can someone explain debit and credit cards and why and when to use one or the other
In: 0
A debit card is just a card linked to your bank account
A credit card is similar but instead of tapping into your balance, your purchases are like a loan. You borrow the amount from the credit company which you must pay them back for.
This lets you buy stuff you can’t afford straight away because you can pay the amount back on a later date. Just make sure you do pay it back in good time as credit cards do have a limit, and they do have interest fees.
Credit cards also have extra buyer protections but I don’t know much about that as I haven’t had to use it yet.
Latest Answers