What is the difference between credit and debit?

Credit and debit cards are both popular payment methods but work quite differently in how they access and use your money. A **debit card** is linked directly to your checking or savings account. When you use a debit card to make a purchase or withdraw cash, the money is immediately deducted from your bank account balance. Essentially, you are spending your own money that you already have. Debit cards are a convenient way to access funds without carrying cash, and many do not allow you to spend beyond your available balance (unless you have overdraft protection). On the other hand, a **credit card** allows you to borrow money up to a certain limit set by the card issuer. When you use a credit card, you are essentially taking out a short-term loan that you will need to repay later. Each month, you receive a statement showing your purchases, and you can choose to pay off the full balance or a minimum payment. Interest charges apply if you carry a balance beyond the due date. Credit cards often offer rewards, fraud protection, and can help build your credit history if used responsibly. In summary, debit cards draw from your existing funds, while credit cards let you borrow money which you repay later. Both have their uses, but it’s important to understand the differences to manage your finances wisely.