Credit Cards and Debit Cards - Money Smart CBI

[Pages:1]FDIC Money Smart Charge It Right ? Study Aid for Adults

Credit Cards and Debit Cards

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Payments Interest Charges

Other Potential Benefits

Other Potential Concerns

Liability in the Event of Unauthorized Transactions

Credit Cards

Buy now, pay later.

Yes, if you carry a balance or your card offers no "grace period" (time to repay without incurring interest). Freebies, such as cash rebates and bonus points good for travel deals. Some purchase protections.

Fees and penalties. Also not all cards offer grace periods. Overspending can cause debt problems.

Liability for unauthorized transactions capped at $50.00. The credit card company may voluntarily waive your liability.

Debit Cards Buy now, pay now.

No.

Easier and faster than writing a check. Avoid debt problems. More cards are now offering freebies. Some purchase protection.

Fees on certain transactions. You may overdraw your account if you don't record your debit card transactions.

Unauthorized transactions are immediately taken out of your checking account. Your liability is capped at $50.00 if you notify the bank within two business days after discovering the theft. Otherwise, you may be responsible for a larger amount.

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