To broaden your knowledge about debit and credit cards, you can provide answers to Which of the following statements comparing debit cards to credit cards is true? As you contemplate the correct answers, you can also reflect on which type of payment card would be ideal for your needs.
Which Of The Following Statements Comparing Debit Cards To Credit Cards Is True? – In Reference To Debit Cards
#1: With debit cards, you can buy items on credit.
#2: Debit cards accumulate interest rates when you use them to purchase items.
#3: You can use your debit card to withdraw money straight from your checking account.
#4: Debit cards can’t be used at POS or ATMs.
#5: Debit cards do not require the use of a PIN.
The correct answer here is #3. Debit cards are usually linked with your checking account, so you will be able to draw from your checking account using your debit card.
Which of the following statements comparing debit cards to credit cards is true? with respect to credit cards
#1: Credit cards never require signatures of users before they can conclude a transaction.
#2: You need preloaded funds in your credit card before use.
#3: Credit cards are issued to anyone regardless of their FiCO credit score.
#4: You can access a defined line of credit using your credit card.
#5: You need a PIN to complete transactions with your credit card.
The right answer in the case of credit cards is #4. A credit card gives you access to a line of credit linked to your credit score. So the better your credit score the higher your credit limit.
The difference between debit and credit cards is the former uses funds in checking accounts while with the latter, funds are borrowed. So which of the following statements comparing debit cards to credit cards is true?
#1: You need no checking account to have a debit card.
#2: Credit cards use borrowed funds.
Your guess is as good as mine.