Debit card
Usually spends money from your bank account.
Credit & Debt
A credit card is revolving credit that lets you borrow up to a limit and repay the balance over time.
Credit 101 • 03
You can make purchases up to the available limit, repay the balance and use the available credit again.
Payments reduce that balance and restore available credit.
Usually spends money from your bank account.
Uses borrowed money from the card issuer.
Purchase interest can often be avoided by paying the balance in full by the due date under the card’s grace-period rules.
Remember this
Every charge creates a balance that eventually has to be repaid.