What's the difference between a debit and a credit card?

There are a few things you need to know about the difference between debit and credit card. The most obvious is that when you use a debit card, the money comes directly from your checking account. With a credit card, you're borrowing money from the credit card company. So if you have a $1,000 balance on your credit card and you charge $500 worth of items, you now owe $1,500 to the credit card company.

Another key difference is that with a debit card, you can only spend as much money as you have in your account. With a credit card, there's no limit to how much you can borrow (as long as you keep making payments). This is why it's important to be careful with your spending when using a credit card - if you run up too high of a balance, it can be difficult to pay it off.