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

The main difference between a credit card and a debit card has to do with how a person pays for a purchase. A credit card is a type of loan that allows the consumer to make purchases now and pay for them at a later time. Credit cards are issued by a financial institution, such as a bank, and must be paid back with interest. By law, any credit card issued in California must provide the user with a minimum of 21 days to pay for their purchases before needing to pay interest. A debit card is a different type of card where the money used to make purchases is taken directly out of the user’s bank account. When a purchase is made, the funds are removed from the account right away. Debit cards are also issued by banks but they do not require you to pay back with interest. In California, the debit card law does not require any minimum grace period to pay for a purchase before a fee is charged and the funds are due.

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