Although debit and credit cards look the same, when you make a purchase with a credit card, you are borrowing money from the bank that issued the card and promising to repay it later. You have the option to pay the full amount you owe as soon as you receive the bill, or you can pay it back over time, with interest. With a debit card, you are paying with funds deducted directly from your linked deposit (typically checking) account. Credit card usage is reported to the credit bureaus. Debit card usage is not reported to the credit bureaus, even if you select "credit" rather than “debit” at the point of sale.