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

The main difference between a credit card and a debit card is how they are used. A credit card is a type of loan that allows you to borrow money from a bank or credit card company to purchase items. You will need to pay off the amount borrowed, plus interest, at a later date. The interest rates on credit cards can vary greatly depending on the company and the cardholder’s creditworthiness. Additionally, most credit cards offer rewards points, cash back, and other financial perks. A debit card, on the other hand, is not a loan. It is connected to a banking account and allows you to spend money directly from that account. Debit cards can be used to purchase items and withdraw cash from ATMs. Generally, debit card transactions are processed more quickly than credit card transactions. However, you can only spend what is available in the banking account connected to the debit card. Credit cards offer more flexibility and can be used to purchase more expensive items. In Maryland, the Credit Card Law is a law that regulates the terms and conditions of all consumer credit transactions. This law requires credit card companies to provide written disclosures of all terms and conditions of a credit card agreement so the cardholder can make an informed decision. Credit card companies are also prohibited from charging fees for things like late payments and over-the-limit fees.

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

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