Credit Cards and Debit Cards lets you make payments online or offline. In this digital age, everyone is moving towards cashless payment. No one likes to carry money in their hand. If you have a credit card or debit card in your hand, You can make payments very easily by simply swiping your card on the POS machine at the merchant. Although both of these cards allow you to make cashless transactions, There are some differences between credit cards and debit cards.
What is a Debit Card
Most banks will allow you to have a debit card if you open a savings account or current account at a bank. We call this card debit card, atm card, and so on. You know that debit is a withdrawal, With this debit card you will be able to withdraw money from your account through the ATM machine. You can also use these debit cards to make payments on e-commerce sites such as Amazon and Flipkart. In short, you can make payments with the money in your bank account without going to the bank. The main difference between a debit card and a credit card is, You have a limit on how you can make payments with debit cards I.e. As you know. You can only use the money available in your bank account. But in the case of a credit card, you can use more than the money available in your bank account.
What is a Credit Card
A credit card allows you to borrow money to make payments. In simple words, Even if you do not have enough money in your bank account to make a payment, you can buy anything, For example, If you want to buy something, even if you do not have enough money in your bank account to buy it, You can make purchases with the credit limit of your credit card. The credit limit is the limit that you can borrow money to make payments with a credit card. The credit score depends upon some factors such as your age, salary and so on. After purchasing with such a credit limit, the money must be credited to your account within the specified time frame. If you repay the amount within this time frame, you will not have to pay interest.
In addition to the credit limit, there are other benefits to using a credit card, You will receive reward points, cash back, and discounts when you make an online purchase or book a movie ticket. In addition to this, a credit card allows you to purchase by EMI.