What is the primary difference between a debit card and a credit card?

The primary difference between a debit card and a credit card lies in how each card accesses funds. A debit card is directly linked to a checking or savings account; when you make a purchase with it, the money is withdrawn directly from your available balance in that account. This means that you can only spend what you have, making a debit card a tool for managing funds you already own.

In contrast, a credit card allows you to borrow money up to a predefined limit. When you use a credit card, you are essentially borrowing funds from the credit card issuer, with the expectation that you will repay that amount later, usually on a monthly basis. This results in a credit line that can be used for purchases even when you do not currently have the cash available in your bank account.

The facts presented in this explanation distinguish debit and credit cards effectively, clarifying the financial implications of each choice. While some other options touch on features or functions of these cards, they do not accurately capture the core distinction, which is centered around the source of funds for transactions.