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 funded. Credit cards are funded through lines of credit, while debit cards are funded by the cardholder directly. A credit card lets you borrow money for short-term purchases and then pay it back with interest. With a credit card, you can spend more than you have in your bank account, as long as you can pay it back within the billing period. Additionally, there can be rewards and benefits associated with credit cards, such as cashback or travel points. A debit card, on the other hand, is linked directly to a checking or savings account. When you use a debit card, you are spending money that you already have in your account. When you use a debit card, you do not build credit. This means you need to be careful not to overdraw your account, as it can result in fees. In Texas, there are laws that govern both credit cards and debit cards. These laws are designed to ensure that consumers are treated fairly and that their personal and financial information is protected. Consumers should read credit card and debit card agreements carefully and make sure they understand all of the terms and conditions associated with each type of card.

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

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