What is the Difference Between Credit Card and Debit Card?

Let us know what are credit cards and debit cards, what are their similarities and how are they different from each other. In this era of card payment, everyone comes out of the house with a card so that where money is needed, he can pay with his card immediately.

Using these cards has also relieved the risk of carrying a lot of money with them, and they are so easy to use that everyone loves to use them.

But do you all know the difference between a credit card and a debit card? When there is a difference between earth and sky, we often make the mistake of treating these two cards as one. In such a situation, understanding the difference between these two cards will prove beneficial.

What is the difference between Credit Card and Debit Card?

Debit Card - Through debit card, you can withdraw money from your current or savings account only. The money you earn using this card is debited from your account and credited to the account of the person with whom you transact.

Credit Card - On payment through credit card, the bank lends you the amount for the same period as you have paid with your credit card.

The limit on the amount that can be paid by credit card is decided by the bank as per your financial base, and you have to pay fixed interest on this amount. This amount can be any number starting with 5000.

Let us tell you what are the similarities between both Credit Card and Debit Card ?-

Both these cards make financial transactions easy.
The services of both these cards are available only through one or the other banking medium.
Both the cards are similar in appearance as they have the same color, shape and size.
Both the cards are used as payment options and the way of using them is almost the same.

Now know what is the difference between Credit Card and Debit Card ?-

With a debit card you withdraw money from your account, while with a credit card you borrow money from a bank.
No interest is payable on the amount withdrawn from the debit card whereas interest is payable on the amount withdrawn from the credit card.
The service charges levied by the bank on debit cards are usually lower than on credit cards.
Debit cards are accepted only in your country whereas credit cards are used equally across the world.
Debit card online transaction limit is your account amount whereas credit card limit is set by your bank.

After knowing the difference between Credit Card and Debit Card, it is also better to know what precautions should be taken while using these cards?-

Do not share the series of numbers written on your card with anyone.
Never share your card password with anyone.
If you want to avoid online fraud, keep changing the password of your card in a few days.
Make sure to take a receipt after doing any card transaction at any shop.
Avoid using ATMs which are in secluded places and where there is no watchman. Often such ATMs are the target of hackers.
Don't use sites that start with HTTP instead starting with HTTPS.

Now you know the similarities and differences between credit card and debit card but also keep in mind that every feature comes with its own caution.

So use your cards as per the need and be careful while using them if you want to take advantage of cashless transactions without any loss in the long run.