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Home Differences Difference between credit card and Debit card

Difference between credit card and Debit card

Hi Friends!! Today we talk about What is credit card and debit card? And what is the difference between the debit and credit card? Both are used for payment so, some people consider that both cards are the same. But both are different. There are some differences in both of which we will know today.

Nowadays, debit cards and credit cards are used in most places. The advantage of this is that we do not have to carry cash with us.

The main difference between a credit card and a debit card is the way money is deducted when making payments of purchases. Debit cards and credit cards used to online transactions even in the absence of casein your wallet.

If we spend money with the debit card then the money is deducted from the deposited in your bank account. That means you use your own money. And in a credit card, you can pay at shopping or anywhere without having money in your account, which you will have to pay later.

What is debit card?

Debit Card- Rupay

A debit card is provided by the bank in exchange for your current data savings account and, you can use it only to spend the amount that is already available in your account.

When you swipe your debit card to make a payment or use it to withdraw money from ATM, the money is deducted directly from your account immediately.

If you do not have enough money to spend on your account, there may be a problem in an emergency.

There are several types of debit card which are of different card service providers. In which

  • Visa Debit Card.
  • Mastercard Debit Card.
  • Maestro Debit Card.
  • Rupay Debit Card.
  • Prepaid Debit card.

Advantages of Debit card.

  • The biggest advantage of this that after this, you do not have to carry more cash than necessary.
  • This is your mobile bank account and you can withdraw funds available in the account Through ATMs whenever you want.
  • It is free and no monthly interest is charged. Some banks charge an annual fee, which is very simple.

Disadvantages of Debit card

  • If a debit card is lost or misplaced, there is a risk of misusing it. And this card is used online so there is a possibility of fraud.
  • Most debit cards are not enabled for international payment. so you cannot pay on the international websites with these debit cards. for this, you have to make another ATM card.
  • If you use debit cards more at the limit then you also have to pay the bank its charge.
  • Disputed charges cab be more difficult to resolve.

What is a credit card?

Credit Card-img

On the other hand, a credit card provides you with a credit limit from which you can borrow money as needed to make payments. You have to repay the borrowed amount within the stipulated time limit, after which the limit of the card is again increased.

Credit limits depend on many things like your credit score, age, income, etc. in case delay of payment, interest is charged only on the outstanding amount.

You can also avail cashback and discounts on movie tickets, online shopping, travel booking, and many more.

Types of Credit cards:

  • Rewards Credit Card.
  • Store Card.
  • Business Credit Card.
  • Travel (charge) Cards.
  • Cashback Credit Card.

Advantages of Credit card

  • The biggest advantage of credit cards is that even if there is no money in the bank account at any time, you can still do shopping.
  • Through this, you can buy products on EMI easy installments.
  • In case of emergency, you can also withdraw cash from it. Although its fee is much higher.
  • Therefore, cash withdrawal from a credit card is usually avoided.
  • If you have a credit card, you do not need to carry cash anywhere.

Disadvantages of Credit Card

  • Late payment or over-limit charges can affect your credit score.
  • If you do not pay the credit card bill in time, you have to pay a lot of interest. There is also a penalty.
  • Nowadays, online hacking has increased due to which sometimes credit card gets hacked and you can lose a lot of money.

Difference between debit card and credit card

Credit card vs Debit card
There Necessary to have an account in the bank to get a debit card.But here no bank account is required to get a credit card.
The debit card is linked with your bank account.While a credit card is not linked to your bank account.
With a debit card, you withdraw money from your account only.Whereas through a credit card you borrow the amount from the bank.
There is no Interest to be paid.And here you have to pay interest on the amount withdrawn from the credit card.
There is no fixed limit for spending money on a debit card.But credit card has a fixed limit, you will be able to spend as much as your credit card limit.
Debit cards are only acceptable in your country. (For international you have to get platinum or international cards from the bank.)Credit cards are used equally all over the world so they are more useful during travel.
The debit card does not provide us EMI facility so that we can not buy anything on EMI.Credit cards provide us an EMI facility so that we can buy anything from credit card to EMI and later pay in installments.
Provide less security.Provide better security.

So friends, today we told about what is a debit card and credit card, what is the difference between them. and what are their benefits and many more.

Nowadays, Everyone has to have a debit card or credit card. when we do not have cash then we can make easily digital payments. I hope you liked this article and understood it. If you liked this information then share it with your friends & family and spread knowledge with them.

Contributed By :- Priya Chauhan



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