Differences That We Need to Know About Debit & Credit Cards

Everyone loves to go cashless today; digital technology development is easing our work to a great extent. Carrying money especially when the purchase is going to be bigger is being a strain. Some feel so distressed to safeguard the huge amount of currency. They aren’t compact enough to take away in our pockets or wallets. Women frequently face the discomfort of the handbag being theft with large amount within it. The major disadvantage lies in the fact that it is naked to others when we carry money in huge amount.
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Credit and Debit cards

Credit, as well as the Debit cards, provides us the comfort since they are so compact in structure and easy to transfer. No hassle no mess; only safe cash transfer to the other person. They are easy to handle and safer to travel around. Even after purchasing things for a large amount you can leave the shop in just a swipe.

Say goodbye to the time of counting the money while a longer queue is waiting back from you. Re-checking the count again to ensure the amount paid leaving the other person to wait for a long time. Once you pay them again you have to wait until they ensure the amount; leading the queue in frustration. Paying through cards will also be easy for income tax calculations since the bills are readily available in the digital platform.

Explication of debit and credit card

A debit card is a one similar to paying cheque from your available balance whereas a credit card is like getting a loan from the bank where you have set up your account. Customers are allowed to purchase the goods from the balance in the account. Here the clients are restricted to make any kind of shopping within the amount available. So, whenever a transaction is made that a particular value will be deducted from the savings. Every month an optimal amount is charged by the bank for the usage of the card. ATM cum debit card is the latest emerging trend now.

A card that allows the customer to purchase in a large amount even beyond their savings is the credit card. The bank lends them money as a loan for the shopping. Here, the customers are responsible for repaying the debt. It not only includes the original amount spent as a loan but certain terms are also inclusive along with it. Customer must repay the debt within a period of 30 days beyond which additional interest at a prescribed rate will be charged.

Major disparities between credit and debit card

Credit and debit cards are completely different to one other even though their common objective is to help the users go cashless. To get a clear picture of the difference among them to let’s get a closer look at how they differ at certain parameters.

What do they imply?

Credit card implies purchase first and credits afterward whereas debit card allows purchasing only if you have the required amount. ‘Pay later’ is the caption that makes credit card more popular among the people. It has a period of 30 days time to repay it back to the bank. ’Pay now’ is the term for a debit card that completes the transaction at that particular time itself.

Necessity of account

In order to acquire credit card having an account at the particular bank isn’t a prior condition. You can apply at your favorite bank even without having any kind of account. On contrast requirement of a bank account is a prerequisite. Since the amount spent on purchase is deducted from the account available in the bank, having an account becomes a must.

Limit of withdrawal

There is a limit for withdrawal in both credit and debit card but varies on certain factors. For a credit card, the maximum amount that can be withdrawn depends upon various parameters. These parameters are nothing but the credentials that we provide the bank while applying for the credit card. It includes credit history, income, capacity to repay, and debts. Based on all these factors a credit rating is prepared for the cardholder. The limit lies depending upon the rating for the card.

The maximum amount for withdrawal is the balance available in the account. One cannot purchase beyond that particular limit. This remains advantageous on one side; since we can keep an eye on the available balance and purchase items within the limit. This helps in tracking our expenditure.


There is no billing required for a debit card; only alerts on the amount deducted from the account balance will be notified. For credit card at the end of 30 day notice period, a bill along with the charge for not repaying the debt within mentioned days will be sent to the user. The overdraft rate is low in case of a credit card but it’s high in a debit card.


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