Eli5 can someone explain debit and credit cards and why and when to use one or the other
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Debit cards let you spend money right from your checking account. You swipe your card and charges will subtract from your account automatically. Debit cards are helpful when you want to make a purchase immediately with money you already have without having to worry about a bill later.
Credit cards let you spend money based on access to a revolving loan from a bank. When you’re approved for a credit card, the bank gives you a credit limit, which is the most they’ll let you spend before you pay some of your loan back. When you swipe a credit card, the bank covers the cost of the purchase. Meanwhile, the purchase price is added to your credit card bill. Typically, you’ll have at least a month before you receive the bill for your purchase. If you pay all of your purchases on each bill in full each month, you can also typically avoid paying interest fees. Thus, credit cards allow you to buy now and pay later. In addition, credit cards entice users with extra perks that vary with each card, including rewards and purchase protection.
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