Debit card vs Credit card: What is the difference between Debit & Credit card?



  • We all are fond of using debit cards and credit cards as well. But, have you noticed what's the exact difference between a debit card and a credit card in general? Let's look for some key differences between these two instruments.
    Debit card vs Credit card:

    • Which funds can be used? Debit card allows you to use funds available in your savings/current account only. While Credit card can be used upto the credit limit sanctioned to you in your credit card account. The lender sets a specific credit limit over which you cannot use your credit card.

    • Interest: Interest is charged on the outstanding balance in your credit card account. You are basically using the lender's money to make payments. This is not applicable in a debit card.

    • EMI facility: Your credit card shall offer you an EMI facility whereas a debit card doesn't give such an advantage.

    • Repayment: You have to repay the credit that you have utilised while using your credit card. You need to clear your credit card bill in time to avoid any interest charges. However, when you use a debit card, that's basically your own money in your bank account. So, nothing to repay in that case.

    From safety point of view, what I feel is that using a credit card is still better than a debit card especially while making online purchases.

    What other key differences can you spot between a debit card & a credit card? Do jot down your observations here.



  • @harleen I normally use a credit card only while shopping online or at stores. That gives me some cashback also. I get some credit period and don't have to immediately clear dues. But, I usually clear my credit card bill on time.



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