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

What is the difference between a credit card and a debit card Introduction: The World of Plastic Money Hello everyone, welcome to today's video. In an era where cash transactions are becoming less common, plastic money has taken center stage. Among the most widely used forms of plastic money are credit cards and debit cards. While they may seem similar at first glance, there are some fundamental differences between the two. In this video, we'll explore these differences and understand how they can impact your financial decisions. Ownership and Usage One of the key differences between a credit card and a debit card lies in ownership. A credit card is essentially a line of credit provided by a financial institution. When you use a credit card, you're essentially borrowing money from the bank, which you'll need to repay later. On the other hand, a debit card is linked directly to your bank account. When you use a debit card, the funds are immediately deducted from your account. In simple terms, a credit card allows you to spend money you don't have, while a debit card ensures you're spending your own money. Interest and Fees