What distinguishes a credit card from a debit card?

The distinguishing feature of a credit card is that it allows the user to borrow money to make purchases, which is fundamentally different from how a debit card operates. When using a credit card, the cardholder is essentially using a line of credit extended by the card issuer. This means that they can make purchases up to a pre-set limit and pay the amount back later, often with the option of paying over time, which may include interest if the balance is not paid in full by the due date.

In contrast, a debit card is directly linked to the user’s bank account, meaning that when a purchase is made, the funds are immediately deducted from the account. This makes a debit card a more immediate form of payment that does not involve borrowing but instead utilizes available funds.

The other options present features or limitations that do not accurately describe the core differences between credit and debit cards. For example, claiming that a credit card can only be used for online purchases is inaccurate, as credit cards can be used both online and in physical stores. The notion that a debit card offers rewards for spending is also misleading, as while some debit cards do offer rewards, it is not a defining trait that distinguishes it from credit cards, which are more commonly associated with reward programs