A Better Way to Manage Your Everyday Money - Book - Page 67
Here’s a quick comparison of credit and debit cards.
Credit card
Debit card
Money is borrowed from the card issuer.
Money is deducted immediately from your
checking account.
Spending limit is set by the credit card issuer.
Spending limit is the balance in your checking
account.
Interest rates and fees vary.
No interest charges. May have overdraft fees.
Helps you build credit.
Does not help you build credit.
Overspending can lead to debt.
No accumulation of debt.
Offers fraud protection.
Limited fraud protection.
60 days from statement date to dispute
fraudulent charges.
60 days from statement date to dispute
fraudulent withdrawals.
Regulated by Fair Credit Billing Act.
Regulated by Electronic Fund Transfer Act.
May offer rewards.
May offer rewards.
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