How are debit and credit cards different?

Debit cards and credit cards can all look pretty similar, especially if you get them from the same financial institution. So how are you supposed to know what makes one different from the other? Below is a chart explaining some of the basic differences between these handy financial tools:

	How to Get a Card	The Money You're Using	Fees for Use	Where You Can Use the Card
Debit Card	Checking account eligible	Typically withdraws from checking unless used at an ATM where it functions as an ATM Card; no monthly bill	No fee to use unless at an ATM that does not belong to the issuing institution; Some smaller vendors will charge a small fee	Any establishment that accepts the card's logo (i.e. Visa, Mastercard)
Credit Card	Eligibility determined via "loan" application and approval	Draws up to a predetermined loan amount; monthly bill for repayment of amount used	Different fees may be assessed depending on the credit card; Interest almost always charged on loan balance	Any establishment that accepts the card's logo (i.e. Visa, Mastercard)

Different financial institutions have different terms when it comes to these cards so make sure to ask any questions you have and understand what you're getting into before using any card. Once you fully understand the tools you have your disposal, your financial life can become much more convenient!

Ask any RCU representative for details on the corresponding Redwood Credit Union options!