![]() ![]() A debit card is directly linked to the account, and if it is stolen and used, direct money from the account is transferred, which is very difficult to recover. Security issues – However, both the cards are very secure the Debit Card is required to be more taken care of than the Credit Card. For spending a stress-free vacation, it is better to take a Credit card. ![]() ![]() Credit card avoids money to be frozen while in a debit card if balance is unavailable, it can freeze the money. It is preferred more than carrying a Debit Card, cash, or a checkbook. 6 Key Differences Between Debit Card & Credit Card #Ĭonvenience while traveling – it is considered that a credit card is much easier and safe to keep while traveling. As on the other hand, a negative credit score will make you get credit facilities on a higher rate of interest. Positively, if your credit score is good, it can avail you better credit offers for the future. These both are the proof of your creditworthiness and, therefore, higher your creditworthiness, higher your credit limit.Ī Credit Card is responsible for building up your credit score. Your income and your credit history determine this limit. You can borrow money against a line of credit known as the card’s credit limit. Though it is recommended to pay the full due amount but sometimes under certain situations, the minimum due amount can also work. The interest charged is high, and if you do not balance Credit Card’s payment, it can hamper your credit score. During the re-payment of the credit, you need to pay the principal amount and interest as well. What does Credit Card mean? #Ī Credit Card allows you to take money on credit, which must be repaid after a certain time. It can also be used as ATM cards for withdrawing cash directly from your bank account. They might alert you after each transaction or together every month.įor the usage of a Debit Card, you need to have a PIN present with you. These alerts depend on the service providers when they send them. This helps you keep track of all your Debit Card spending. ![]() When you swipe the card for a payment, you receive an SMS or email. The money taken is debited to your account as well, and therefore no interest is charged. For example, you can’t purchase an article worth Rs.15, 000 if you only have Rs. The amount can only spend up to the amount present in the account. Well, to understand that, we must first know what is a debit card and credit card and how do they work? What does Debit Card mean? #Ī Debit Card pulls the money directly from your bank account when you make a purchase. So, if it looks this much identical, then what’s the difference? Debit Card VS Credit Card: #ĭebit cards and credit cards are basically two identical rectangular plastic cards with 16 digit numbers, expiration date, PIN number, and a CVV number at the back. Here are a few differences that will clear your mind about the same. But, still, there is a broad line of distinction. And both provide security from thefts.Īfter all this, it is very common to get confused between the two. They both look similar, and both of them offer the convenience of not carrying cash everywhere. However, they can include multiple fees so make sure you read the fine print.Many a time, a person gets baffled about the difference between the Debit Card and the Credit Card. Plus, they’re usually reloadable, and you generally don’t need a credit check to get one. They’re great for setting budgets or cutting down on carrying cash. This amount isn’t linked to your bank account, so you never have to worry about overspending. Pre-paid (or top-up) cards work as a fixed payment system-you load money onto the card from another account or with cash. But they can also be risky-if you aren’t able to pay back your outstanding balance, your credit score will drop and the interest can add up. Each payment you make gets added to your total outstanding balance, which you’ll have to pay back later, along with any interest required.Ĭredit cards offer lots of advantages, like quick access to funds, building your credit rating, cashback rewards, fraud protection and more. What is a credit card?Ĭredit cards borrow money from the card issuer every time you make a purchase. But there are often extra charges for this, especially if you haven’t arranged it in advance with your bank. In some cases, you can borrow money from a debit account using overdraft, which allows your balance to go into the negatives. They’re easy to use and mean you don’t need to carry physical cash. You can use them to make purchases in stores or online, or withdraw from ATMs. Debit cards are linked to your bank account, giving you access to your balance. ![]()
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