Difference Between Credit Card vs Debit Card : Nowadays, the trend of debit cards and the credit card has increased rapidly. Although sometimes some people get confused about what credit cards and debit cards are and the difference between the two, let us answer you are every question.
Difference Between Debit Card vs Credit Card: In this era of digital payment and online shopping, debit card and credit card trends have increased rapidly. Although sometimes some people get confused about what credit cards and debit cards are and the difference between the two, let us answer you are every question.
What is Debit Card?
The debit card is a plastic card, and the bank gives it to its customers for transactions. Nowadays, every bank provides the debit card to its customer and opens the account, also called an ATM card. Through this, you can easily withdraw money from the ATM without having to queue in the bank. With a debit card, you can withdraw as much money as you have in your account. If you do not have money in your account, this card is of no use to you.
Advantages of Debit Card
Its most significant advantage is that you do not need to carry more cash than you need when it is there.
This is your mobile bank account, and you can withdraw funds available in the account through ATM whenever you want.
It is free of cost and no monthly interest is charged. Some banks charge an annual fee, which is very simple.
What is a credit card?
It is also similar in appearance to a debit card, and through this, you can also do digital transactions. However, for debit cards where a bank account is required, it is not necessary for credit cards. Many finance companies also issue credit cards. While taking a credit card, a limit is fixed keeping in mind your repayment capacity, which can range from 10-20 thousand to lakhs.
Through this, whatever purchases you make throughout the month has to be paid by the date specified by the bank at the end of the month. The bank imposes a penalty for non-payment by the due date.
Benefits of credit card
The most significant advantage of a credit card is that even if there is no money in the bank account at any time, you can still shop.
Through this, you can buy products on EMI i.e., easy installments.
In case of emergency, you can also withdraw cash from it, although its fee is very high. Therefore, withdrawing cash from credit cards should generally be avoided.