Credit Cards vs Debit Cards
Credit Cards
-Takes the money from the bank of the company that issued the card. -You can borrow the money. -You can pay it back each month. -Credit limit- the most you can borrow. -Minimum payment if you can't pay the whole amount -But you will be charged a fee for not paying off the whole amount.
Debit/Check Cards
-linked directly to your bank account. -"Your Money" -immediately takes your money out of your account -If you don't have enough money in your account, it won't work. (Declined)
Debit vs Credit
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Example #2
Oct: Don't use Credit Card Balance: $273.36-$25.00=$248.36 20% interest fee: $248.36+49.67=$298.03
Example #1
Sept: Walmart-$126.50 Premiere-$58.63 McDonald's-$33.17 Target-$34.50 Total: $252.80-$25.00=$227.80 Min payment=$227.80+$45.56 with 20% interest Fee= $273.36
