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Debit cards vs credit cards: what’s the difference?

A debit card uses your own money

When you pay with a debit card, the money comes straight from your bank account. You can only spend what you already have.

Why debit cards feel safer at first

Debit cards make it easier to stay within your limits, which is why they’re usually the first card people get when leaving school or starting work.

A credit card uses the bank’s money

With a credit card, you borrow money from the bank first and pay it back later. If you don’t repay the full balance on time, interest and fees can apply.

Why this difference really matters

Understanding the difference between debit and credit helps you avoid debt, build good money habits early, and decide when — or if — a credit card is right for you.

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