What is the Difference Between Debit cards And Credit cards in India?

Difference Between Debit card And Credit card: according to the look, both debit cards and credit cards are the same as identical. Both are popular as a term of Plastic Card. Above All, Both are great options for connecting with the Cashless India campaign.

Even Both Cards have the same attributes as well. you can be done your shopping by swiping up with both cards too. additionally, the identical logos are Visa or MasterCard on one and the other cards.

Here is the list of similarities that are looking the same in both cards.

SimilaritiesCredit CardDebit Card
Digit numberThe credit card has a total of 16 digit numbers.in debit cards, it has 16 digit numbers. (Same)
WithdrawingSame as a Debit card, a credit card enable the withdrawal of cash from ATMs.Debit cards are for withdrawing money from atm.
Expiry it has an expiry date same as a Debit card.Yes, it has a date of expiry

Both Debit & Credit cards are used to withdraw cash from ATM machines and used for online shopping. But the real answer is both have a lot of differences.

Credit And Debit cards both offer versatile benefits in their fields.

Debit cards are best for purchasing wisely. it uses your available bank account funds only. Therefore, the debit card holder feels free from Debt.

Credit cards are an impressive way for spending too. it provides borrow funds for purchasing and emergency use. Moreover, Cashback on transactions to that makes more meaningful of your purchasing.

Debit card Vs Credit card Highlight Difference Points

Here are the major highlights of Difference in Credit And Debit Cards –

Difference Highlights PointsDebit Cards (Plastic Cards)Credit Cards
CashbackYou get Minimum Reward Points on SpendingIt offers quite decent Cashbacks, Reward Points, Milestone points, etc
Interest chargesBy Use of a debit card, there will be no interest fee will charge.in credit card, you’ll be charged a high-interest fee
WorksIn the function of Debit Card, The amount is debited from the bank account immediately.the credit card offers borrowing money that you can buy stuff pay later to the bank
ChargesLow Charges compared to Credit CardsCharges are the acceptable cause of Additional features that are not available in debit cards.
Additional Fees– Annual Fee
– Replacement fee
– PIN Generation Charges
– Joining charges
– Late Payment Fees
– EMI Charges
– Per Year annual Charges
Withdrawal FeesOnly Charges apply when withdrawing from other banks.The Fee is 2.5% or more of the withdrawal amount will charge.
StatementNo particular statement by purchasing through debit cardIt has a monthly statement to your email or mobile phone. you can check via net banking too.
finance Limits Only your deposit cashonly your issued credit limit
Additional Features– Decent Reward Points
– Higher Withdraw limits
– Insurance Covers
– International usage
– Higher Purchasing Limits
– free lounge access
– Great Cashbacks And Reward Points
– Numbers of Discount on Dining And Movies Booking
– Helps to Maintain Good Cibil Score
– Accidental Covers
– International Free lounge access
– International Usage
– Add on Cards
– Discount from Partner Firms.
– Insurance Covers

What is Credit Card?

A credit card is a banking product that allows the holder to make purchases on credit. the card holder can done their purchases and pay later to the bank within 30 to 45 days. Additionally, it offers Monthly EMI, Cashbacks, Discounts, And Travel Benefits too.

The Bank verifies the applicant several documents to approve the application for the credit card. A Good Credit Score And Stable Monthly Income are basically required. Additionally, The Bank needs the necessary documents of the Personal, Income, And Address to complete the process too.

The bank will set a credit limit on your credit card which you can spend anywhere. moreover, the bank will also set the timing around 45 days to pay with no fee. After that, if you can’t pay on time it will start to add interest rate to your spend amount.

Additionally, a credit card makes your spending more profitable through getting discounts offers and earning cashback. Above all, The card is a boon for emergency funds. moreover, You can change your big spend into Monthly EMI.

What is Debit Card?

A debit card is a banking product that enables your transactions cashless. moreover, it allows withdrawing cash from your bank account too. The Bank issue the card only for account holders. The individual must behold a savings or a current account in the bank To get the debit card.

Additionally, it offers higher limits of withdrawing and purchasing. Also, affordable annual charges too.

Above All, it is more suitable for saving your cash compared to Credit Card. Good for avoid debt. you do not have to pay any interest rate. additionally, no extra fee too.

When you done any purchase via debit card. The debit card will Immediately deduct funds from the bank account to pay your purchase bill. it uses the bank account’s current balance to pay the bill. Therefore, your bank account balance is your spending limit.

Let’s talk about what is the Difference Between Debit cards And Credit cards?

The Major Difference Between Debit cards And Credit cards is the Credit Limit.

on a credit card, you need a good credit score and stable monthly income to approval your credit card application by the bank. there is no connection between your credit card and your bank account. however, it has a good or negative impact directly your cibil credit score.

if you track your credit score And handle your all payments via credit card wisely. Additionally, if you pay your overdue payments in a timely. These are several methods that you can use to increase your credit limit and credit score.

on a debit card, you don’t need any credit score to get one. your current bank balance is the spending limit that you can use widely.

Advantages of Credit Card

AdvantagesInformation
One Card Enough For EverythingCredit cards work in an entire variety of categories. For Entertainment, Travel, Shopping, Lifestyle, etc you can use it effortlessly and earn reward points too.
CashbackSome popular credit cards offer 2% cashback on deals Which is quite beneficial for your purchasing compared to any debit card.
Reward PointsThe Credit card holder can earn cash back in the form of reward points, discounts, milestones, and gifts that make his purchasing more beneficial.
Credit LimitYou need to have a balance in your bank account to purchase anything on debit cards, But On Credit Card, it is a different game. A Credit card offers a credit limit that you can use now and pay later.
Credit Scoreif you wish to maintain a good credit score, then a credit card is an asset tool for you. in simple words, if you do pay your bills on time, it helps to maintain a good cibil credit score.
EMIThe credit card enables cardholders to change their purchases into Monthly EMI. On shopping from e-commerce sites, a credit card is the best tool to change your purchasing into Monthly Installments.
Travel benefitsCredit cards play a decent role in traveling. the card offers to card holders several benefits for good travel support. for instance,
– Free international or Indian lounge access
– Death cover
– Unfortunate air accident cover
– Emergency hospitalization
– Checked luggage insurance

Disadvantages of Credit Card

DisadvantagesInformation
High-Interest rate– If the cardholder does not clear the overdue funds before the set time then the bank will add interest in the amount. the interest rate of cards is pretty high. The popular credit card average annual interest rate is around 43.2%. it would be around 3.6% per month.
– The credit card Adding interest rate fees means you pay more compared to the actual price of goods and services.
Annual maintenance– The credit card has charge maintenance yearly for their services. some entry-level credit card offers a decent yearly charge and a Few platinum credit card have high charges of annual maintenance. over the time, it could be a little bit expensive to manage. Whereas, there are few credit cards that offer free lifetime maintenance charges.
Hidden chargesAccording to Charges, a Credit card is not as simple as it looks, it has some taxes and hidden charges that apply. such as the interest rate, late payment fee, withdrawal charges, GST, Transactions Fee, processing fee. Moreover, The Charge on Monthly EMI applies too.

Advantages of Debit Card

AdvantagesDescription
No Worry About DebtDebit cards do not offer credit. so obviously, you are free from interest rate charges. above all, you will not in debt of charges by the use of a debit card which is quite beneficial compared to any credit card.
Reward Points And EMISome debit cards are offers reward points on purchasing that quite a better way to spend wisely. moreover, a few cards can enable your purchasing into Monthly EMI Too.
Additional Benefits– For withdrawing cash, a Debit card offers a higher limit of the withdrawal amount.
– You will not have to pay the hidden costs of charges compared to a credit card.
– Debit cards is a good financial instrument for saving and purchasing wisely.

Disadvantages of Debit Card

DisadvantagesDetails
No Support of Emergency FundOn a Debit card, you are fully dependent on your current balance in your bank account which could be an issue when you need Emergency Funds.
Withdraw ChargesWithdrawal charges – Bank offers a limited number of free withdrawing cash transactions from ATM Machines. after that, there is an additional fee on withdrawing funds from ATMs.
No Effect on Credit ScoreThere will not build your credit score by using a debit card.

Summary

if you like earning cash back and getting rewards on shopping. further, want a good return on daily lifestyle spending? decent support on traveling too. then a credit card could be the best option to choose. with some charges and a good credit limit. The credit card overall provides decent performance.
Additionally, The cashback and additional features, with a drawback of high charges. credit cards provide quite attractive performance compared to debit cards.

debit card services are quite advantageous for cardholders. By using of Debit Card, you can Avoid your Debt, Obviously, free from additional interest rates charges, Moreover, no hidden cost to pay, and it’s less expensive.

A Debit card is overall a decent choice for those people who want a avoid debt and avoid additional services charges. However, there is no credit allowed and no impact on a credit score which could be drawbacks on debit cards.

Both Credit cards and debit cards are best in their field. however, both have some great advantages and some drawbacks.

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