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

The primary distinction between a debit card and a credit card lies in how funds are accessed and utilized. A credit card allows individuals to borrow money up to a predetermined credit limit. This means that when a user makes a purchase with a credit card, they are essentially taking out a short-term loan from the credit card issuer, which they are expected to repay, often with interest if not paid off in full each month. This borrowing capability can help build credit history and allows for more flexibility in managing cash flow, especially in emergencies or for larger purchases.

In contrast, a debit card is directly linked to a checking account, and purchases made with a debit card deduct money from that account immediately. This means that users can only spend the money they have already deposited, ensuring they do not incur debt. The attributes of debit cards outlined in the other options do not accurately capture their functionalities, further emphasizing how borrowing against a line of credit is a key feature of credit cards only.