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Difference Between Debit Card & Credit Card-An Ultimate Guide

An overview of Debit card Vs Credit card

Debit cards and credit cards both of these cards have property are like mobile sim cards Debit card are like prepaid card and credit the card is like a credit card.

We all see the debit cards and credit cards in which we found the 16 digits numbers, expiration dates, cardholder name, and backside a security number.

All you are surely familiar with Debit cards and credit cards and most of the people are must it but are you know what is the difference between a debit card and credit card and are you confused in terms of these cards.

Let’s clear this confusion in this post I will tell you about the basic difference between a debit card and credit cards, definitions and meaning of these cards, the key differences between them and similarities, etc.

Debit card

Friends, you must have an account in any bank or it can be saving or current account and banks provide you a card to withdraw money from the ATM machine and used for the online transaction.
 This card is called a Debit card. This card is linked with your bank account which is connecting by the bank to your account.

This card can be used for online transactions and shopping purposes. It can be used in the swipe machine to purchase and product.

There is a limitation I debit card which is if you make any purchase without sufficient balance in your account then you can’t make the purchase. We will discuss all the terms of a debit card in this article later. Keep engaged.

Credit card

Friends to take a credit card there is no need for Bank account and the credit is not used to deposit the money.

 A credit card is like a loan that is provided by financial institutions. We can’t withdraw money from the ATM machine by using this card.

As like debit card, we can use the credit for online the transaction, shopping using swipe machine, pay the bills or transfer to a bank account by using a credit card.

There is a limit in credit to use in this card the card provider gives you a limited account every month to use. We will discuss all the terms of the credit card in this article later. Keep engaged.

Basic Definition of Debit card and credit card

Debit card- A debit card is a plastic payment card that can be used instead of cash when making a purchase. The money comes from the user’s bank account when performing a transaction.

Credit card- credit card is like a bank account without having balance in it. It is a plastic card with a signature identity or the owner. When using a credit card, you will need to make at least the minimum payment every month by the due date on the balance.

8 Key Differences between Debit card and Credit card

      1. The first Debit card was issued in 1987 by BARCLAYS it is a U.K. based Bank and the First credit card was issued 1950 by Diners club.

       2. Debit cards enabled the user to pay at a different store and credit cards were used to pay restaurant bills for the first time.

      3. Anyone having a bank account can avail a debit Card without credit availability with a simple one-time registration process but In the case of credit card, it is offered only to those customers having minimums credit score as per their income.

     4. By using a debit card you can only spend less than or equal to the money you have in your bank account while credit card enables you to spend even if you have less or no money in your bank account.

      5. When you make a purchase using a debit card the amount is detected from your bank account instantly but when you make a purchase using a credit card the amount is billed as outstanding balance which has to be paid in 30 days generally.

      6. Debit card users have control of the funds being spent. It depends on the money saved in the account where credit card users have a max limit for expenditure which is decided by the bank and not by the user.

      7. Spending using debit cards incurs no interest in payments you only have to pay a small service charge but credit card users are allowed a period to pay the credit card bill. After the period hefty interest is charged.

      8. The debit card user does not have any reward system for users No specific reward that can be redeemed for more purchase in the case of credit card user often get reward points which they can redeem for extra discount/new purchases.

         Security Protection

     In terms of cards whether it is a debit card or credit card risk is involved also that’s why you should know about them.

 To do online fraud using cards is not easy there is a little condition to prevent yourself from these online scams you must be aware never share your secret details related to your card without checking and don’t provide OTP (one-time-password) and keep updates your ATM pin or password at the time to time.

If you are victims of online fraud or scams immediately contact your bank account.

Similarities in Debit card and Credit card

There are some similarities in both of these cards.

       1. Debit card and credit card issued by a bank or financial.

       2. Both of the cards provide some similar facilities like online transactions, shopping, purchasing, etc.

       3. Both of the cards are made by plastic and a magnetic strip for use in swipe machines.

      4. The charges are deducted only when we use the cards in both cards.

       5. Security protection is the same in both cards.

If we sum up all the terms of debit card and credit card we find that the evolution of these cards make the life easy and simple of humans by using a debit card we can withdraw money at any time even in an emergency and by using a credit card we can do our emergency work without any tension because the credit card is like any time you get a loan.

So this was the all about difference between a debit card and credit card.

This article is only for educational purposes. We did not provide any buying advice and suggestion related to these cards.  The motive provides basic information about these cards.

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