Credit Card - Every time you use a credit card, you are actually borrowing money that is made available to you by a financial institution. The financial institution pays the debt to the vendor, and in turn, you pay the money back to the institution. By applying for a credit card, you agree to pay back the money that you borrowed, in addition to any interest and/or fees drawn on the amount you borrowed.
Debit Card – A debit card take funds directly from the money you have in your checking account--in a sense acting like a check, just faster. With a debit card, you don't have to carry cash or checks, and it is very convenient to shop at a variety of places including gas stations, grocery stores, restaurants, and retail stores. Debit cards provide instant access to your money and are accepted worldwide.