What is the difference between debit and credit cards?

A debit card spends money you already have in your bank or credit union account. Funds typically come out of that account when you pay, so you are not borrowing—and you usually do not pay interest on those purchases.

A credit card lets you borrow against a line of credit up to your limit. You repay later by the due date; paying late can mean a late fee, and carrying a balance usually means interest charges.

Both cards may carry the same network logos, but the funding source is different: debit uses your own deposit balance, while credit uses borrowed money that can also help build credit history when repaid on time. Source: How are prepaid cards, debit cards, and credit cards different? — CFPB.

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