Difference Between Credit And Debit Cards | Debit Cards Vs. Credit Cards

Difference between Credit and Debit Card – Any person opens his bank account. So we get check book, passbook and ATM cum debit card from the bank. When your account has some time. So credit card is also offered to us from the bank. However, many people remain confused about what is the difference between debit and credit cards. People take both the things equally. Let us know the difference between them.

The difference between a credit card and a debit card is more than you might imagine. is much more than that. Even though the two cards often look alike. But they have many similar functions. The main difference is that with a credit card, the bank lends money to be used. which you can use. and can pay them back with interest on monthly basis. Whereas with debit card you are spending that money. which you already have.

Difference Between Credit & Debit Cards

Credit CardsDebit Cards
Allows you to borrow funds to pay for goods and services.Deducts money directly from your saving’s bank account or your current account.
It gives you access to money you otherwise do not have.
Your savings bank account or current account.Credit extended to you by your card issuer.
Can spend more than what you have.You can only spend how much you have.
The credit card company pays the vendor for your purchase. You pay the credit card company.You pay for your purchase.
You get a bill or statement each month with details of the transactions you have made.There is no bill or statement
A bill needs to be paid each month since it is being borrowed.There is no payment that needs to be made since you are using your own money.
Credit cards have multiple fees applicable. These include joining fees, annual fees, late payment fees, and bounced cheque fees among others.Annual fees and PIN regeneration fees are applicable.

What is a Credit card?

Credit cards also allow you to withdraw money from ATMs. It is mostly used as a loan option. And this bank issues it only after checking the credit of the customer. Your credit score affects your credit card application. Many credit card applications have a negative impact on your total score. With a credit card, a customer can buy any product that is within his spending limit. After that, he pays for it. 

Many brands also offer attractive discounts on service on credit card transactions. There are many variants of credit cards that offer a wide range of activities. It has facilities ranging from shopping and eating and drinking to booking flight tickets. The credit card bill payment has to be done within the stipulated time frame. Failure to do so will result in payment of penalty and interest.

What is a Debit card?

Debit card has all the facilities which are in credit card but it does not allow credit. Like an ATM card, you need a four-digit Personal Identification Number to complete your purchase. Apart from ATM machines, debit cards can be used in stores or restaurants. And it can also be used for online payment. It is different from a credit card as the customer does not have to pay interest.

Like an ATM card, a debit card allows you to use money from your savings account. Debit cards are issued by banks to your current or savings accounts. When individuals swipe their debit card to make a payment or withdraw money from an ATM. So the money is deducted directly from your account. If there is not enough amount in the account. So it can create problem during emergency.

What’s The Difference Between Credit & Debit Cards

  • Money transactions are done through debit card and credit card.
  • Both these cards make the purchase of people more easy.
  • Debit card is linked to your savings or salary account.
  • Therefore, shopping with a debit card deducts money from your account.
  • Whereas on payment by credit card, money is deducted from credit card.
  • That’s why you get time to pay it off.
  • Credit cards have annual fees and PIN regeneration charges applicable.
  • There are several fees applied to credit cards.
  • But joining fees, annual fees, late payment fees and bounced check fees are included.
  • No interest is charged on the credit card.
  • Both these cards have a 16-digit number and are marked with an expiry date and identification number (PIN or CVV).
  • You can withdraw money from ATM and cashless online or offline.


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