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- Hi Raven! It's so good to see you. I have exciting news..... I got a credit card!
- Hi Zay! It's good to see you as well! Have you used your credit card? Do you like it better then your debit card?
- Yes, I love it! I can spend as much money as I want on it and don't have to pay anything back.
- Sounds good!
- If you want, we can set up a meeting at my office and I will tell you all about what you need to know.
- Oh no, Zay! I think you are confused between a debit and credit card. However much money you spend on your credit card, it will all come back to you, and you have to pay back the amount.
- Ohhh, that makes so much more sense. I really do have to be careful about my credit card and how much I spend on it. I also have to make sure I pay it back on time!
- Cool! I also have a couple more questions.
- Yes, it is all about learning and understanding the concept of the credit card! It's also all about responsibility and paying your loans back on time.
- To start off, a debit card is the amount of funds from your purchase that get taken out from your checking account. When using a credit card, the amount is charged to your line of credit. This means that whatever money you spend on items, you will have to pay it back. Does that make sense?
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