Credit Vs Debit Card: Both debit card and credit card are used for online payment, shopping etc. Debit card can be used only when there is money in your account whereas credit card can be used even when there is no cash in your account which you have to repay within a month.
Difference Between of Debit Card and Credit Card: The world is rapidly moving towards digitalization. Today, every work can be done from anywhere as per your convenience.
In this sequence, there was a change in the banking sector also and they provided two types of cards to their customers which we know as debit card and credit card.
With debit card, we can easily withdraw cash from any ATM card, which reduces the hassle of going to the bank for the customers, while with credit card, we are provided the option to make purchases even if we do not have cash in the account.
Gave. In this article, we are telling the difference between debit card and credit card, its advantages and disadvantages, so that you can easily get information about when to use which card.
What is Debit Card?
Along with opening an account in a bank, the bank also provides a debit card along with passbook, checkbook. You can make online purchases, online payments through debit card.
Along with this, you can also withdraw cash from any ATM. To use a debit card, it is mandatory to have money in your account. You can spend only as much money as you have in your account.
What is Credit Card?
The credit card is not provided to you at the time of account opening. This is later provided by the bank upon your consent. It is also used for online shopping, online payment etc.
One advantage of a credit card is that even if you do not have money in your account, you can make payments using it. There is a limit on credit cards.
You are not allowed to spend more than that.Whatever money you spend in a month, you have to return that money in the next month. If for some reason you are not able to return the money, then interest is charged on the money you spent.
Credit Vs Debit Card: Know Their Advantages
- Cash can be withdrawn from any ATM using a debit card. For this you do not need to go to the bank branch again and again.
- Both debit and credit cards can be used for online shopping, shopping and making payments at offline stores (where cards are accepted).
- By having a credit card, you can spend money up to the prescribed limit even if there is no money in your account.
- You can also take loan through credit card up to the prescribed limit.
Credit Vs Debit Card: Disadvantages
- If you do not have money in your account, you cannot pay anyone through debit card.
- If you do not deposit money on a credit card after a month, then interest is charged on the money spent by you.
- If you take a loan on your credit card and do not repay it on time, then interest is charged by the bank on this also.
Conclusion
Credit Vs Debit Card: ATM/debit cards offer high cash withdrawal limits, while credit cards offer additional benefits such as lounge access and protection against lost cards.
The annual maintenance charge of a debit card ranges from Rs 100 to Rs 500, whereas the annual expense i.e. membership charge of a credit card is usually more than Rs 500.
Talking about any kind of fees and charges in both the cases, annual fee has to be paid in debit card, but many types of fees are applicable in credit card. These include card acquisition fee, annual fee, late payment charges and bounce check penalty.
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