Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Difference between Debit & Credit Card

    There are significant differences between debit cards and credit cards. A debit card can be availed by any individual who has a current or savings account in his/her name and have deposited a sum of money in it. A debit card holder can use his/her card to make purchases, provided he/she has funds available in the account. A credit card is offered by lenders to those who fulfil various eligibility criteria. For people who apply for a credit card, a separate credit card account is opened in which the credit limit specified by the lender is available. This credit can be used by the borrower as a short-term loan and has to be repaid by the due date. An interest will be levied on the outstanding amount on the credit card.

    Various other differences between a debit card and credit card are highlighted below:

    Debit Card Credit Card
    Only the funds available in the current/savings account can be used to make transactions. Credit available in the credit card account can be used to make transactions.
    The availability of funds is based on the investment made to the account. The availability of funds is based on the credit limit set by the lender.
    Interest is earned on the deposit available. Interest is levied on the outstanding balance.
    EMI facility is not available on debit cards. EMI facility is available on credit cards.
    No repayment required. Repayment of outstanding amount can be made either as revolving credit (payment of minimum due amount on the credit card account or payment of more than minimum due on the card and less than total outstanding amount) or the borrower can choose to pay the total outstanding amount by the due date.
    Charges include joining fee, processing fee, annual fee, etc. Charges include joining fee, processing fee, annual fee, late payment fee, prepayment penalty/ foreclosure charges.
    Monthly bank statement is sent to the borrowers. Monthly credit statement is sent to the borrowers with details of bills, transactions, total credit outstanding, minimum amount due and due date of payment.
    Any savings/current account holder can avail a debit card. In order to avail a credit card, the applicant must fulfill the lender’s eligibility criteria. Factors such as the CIBIL score or credit history, existing relationship or transaction history with the bank, debt-to-income ratio, etc. affect the individual’s credit card eligibility and approval.
    Fraud liability offered by the Bank/ financial institution is low in the case of a debit card. Unlike a debit card, credit cards come with high fraud liability and insurance cover for losses incurred from the theft and misuse of a credit card.
    The transactions made on a debit card does not affect an individual’s credit history. Transactions made on the credit card is reflected on an individual's credit history and is reflected in his/her CIBIL score.
    Overdraft facility is limited in the case of a debit card. Overdraft facility is available on credit cards. However, an overlimit fee is chargeable on the same.

    Differences between ATM card, credit card and debit card

    While all three are plastic forms of currency, there are quite a few differences between ATM cards, credit cards and debit cards. Given below are the major differences between the three:

    ATM cards can be used at ATM’s only

    While this might seem obvious, the statement is quite a significant one. ATM cards have one purpose, and one purpose only - to enable you to withdraw cash from an ATM. They cannot be used to pay for groceries or a bill at a restaurant, for example, as they can only be read by an ATM machine, which in turn dispense cash from your savings or current account.

    Debit cards can be used anywhere, but require access to real-time funds

    If you’re looking for a card that can be used for transactions as well as to withdraw cash, then a debit card is the one for you. Debit cards can be used at ATM machines to withdraw funds that are already available to you. In other words, once the withdrawal is complete, the money will be debited from your savings/current account in real time. The same goes for purchases made using your debit card at restaurants, malls, cinemas, etc.

    If you do not have sufficient funds in your account at the time of making a purchase using your debit card, the transaction would go through if your card is linked to an overdraft account (which would permit you to withdraw a set sum that is over and above the amount you actually have in your bank account). If you have not linked your card, the transaction would not go through and the card will be declined.

    Some debit cards could also entitle you to cashback, or a return of a portion of the amount you spent on your card. This facility depends on the type of debit card you possess and on other factors such as the type of transaction and the place the transaction is being made.

    Credit cards can be used anywhere and function like mini-loans

    A credit card is, for all intents and purposes, a loan that the bank provides you at the time of making a purchase. Credit cards are not directly linked to your savings or current account, meaning there is no real-time deduction of money every time you make a purchase using your credit card.

    You will have to make a monthly payment at the end of your credit card billing cycle, where you will be required to make a payment towards your outstanding amount.

    You can choose to either pay off the whole amount or pay only a fraction of the cost, known as the minimum amount due. The balance amount, if any, attracts interest, which will accrue until the entire amount has been paid off.

    Applying for a credit card affects your credit score, which is the basis of your creditworthiness. Financial institutions look at your credit score before approving a loan or a credit card, as the score is used to judge whether or not you will be able to repay the loan or outstanding amount on your credit card.

    Credit cards also come with more additional benefits in the form of extended warranties or special offers, such as cash back, frequent flyer miles, etc. In this way, choosing the right credit card to suit your needs would result in you being able to raise your credit worthiness through informed spending, making it easier for a future credit card application or loan application to be accepted.

    These are some of the differences between an ATM card, debit card and credit card. There are many banks in India that offer these cards and people are advised to research before they apply.   

      

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    Difference between Debit & Credit Card Reviews

    • SBI Cards Credit Card
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I have applied for State Bank Of India Credit Card directly with the bank ,the credit limit was ok ,I am using it for the past 2 and a half years ,There was cashback offers and reward points .I dont have any extra features on this card so far .The agent gave all the required details of the card .
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
    • RBL Bank Credit Card
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Ratnakar Bank Credit card through online ,the credit limit was 50, 000it was not sufficient .I ahve started using this credit card .I have received the credit card on time .The agent gave all details about the credit card .I have not faced any difficulties on submitting the documents.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
    • HDFC Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have good experience with HDFC BANK . Their branch support services are always nice and ready to help anytime. Overall it was a good banking experience with them. I never had any issues with their services. They always provided me with immediate response.
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 22, 2019
    • ICICI Bank Credit Card
      "Average card"
      0.5 3.5/5 "Pretty good"
      I've been using the ICICI BANK Credit card for a while.There is charges while getting the card . I do get more flexibile options. I can easily convert my purchases into EMI, there are some processing charges and they also charges a nominal interest. However the service is very useful I never had any problems with their service.s
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 22, 2019
    • HDFC Bank Credit Card
      "Good credit card"
      0.5 5.0/5 "Blown Away!"
      I am so happy with a newly purchased HDFC credit card . They just taken ten days for dispatching the credit card to me . I am highly satisfied with the credit limit given by HDFC . Though It is not a life time free card and I am getting more offers from HDFC .
      Was this review helpful? 1
      , secunderabad
      Reviewed on Apr 22, 2019
    • SBI Cards Credit Card
      "Average card"
      0.5 3.5/5 "Pretty good"
      I have been using STATE BANK OF INDIA Credit card . Customer support is also good. I am long time customer of SBI and never had any issues with their services. But now i close this card because i have to use only one card . There is annual fee at the time of getting the card .
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 22, 2019
    • HDFC Bank Credit Card
      "Average card"
      0.5 3.5/5 "Pretty good"
      I hold HDFC BANK credit card , i close this card because it has very low credit limit . This card is very easy to handle . I am not happy with the services and credit limit is very low i was expecting more limit here . Offers are good , i am using this card for more than 1 year .
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 22, 2019
    • Bank Bazaar Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through online ,then tried checking credit score ,The credit score was not updated one so far that is the only suggestion .This website is easy to use .There was no issues faced so far on using this portal .This portal is doing a very good service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
    • Bank Bazaar Credit Card
      "Best service"
      0.5 4.5/5 "Excellent!"
      Bank Bazaar a is a great platform to compare and choose various banking products. The whole application process was smooth and hassle free.The service is excellent and very easy there was no so much of documents . The website of bank bazaar is easy to navigate and is user friendly.
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 22, 2019
    • American Express Credit Card
      "IN some outlest i cannot swipe "
      0.5 4.5/5 "Excellent!"
      I bought the AMERICAN EXPRESS BANK credit card . I Haven't used much. I got the card with in few days. They are notifying their customer about the due dates and billing cycle. I'll have to wait and see how this card works out for me after usage. I cannot swipe every were .
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 22, 2019
    • Citibank Credit Card
      "Good for fuel filling"
      0.5 4.5/5 "Excellent!"
      I purchased Indian oil credit card from CITI bank its good for the petrol filling and they are providing petrol surcharges and cash back. Its a chargeable card around Rs. 500 but if I make certain transaction of Rs. 30,000 they give waiver option. The due date is also convenient for me.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
    • IndusInd Bank Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      The documentation process was simple and easy for getting the INDUSIND BANK credit card and it took 10 days to get the card. The credit limit is lesser than other card, it is a life time free card but i am not getting any offers with this credit card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
    • RBL Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      RBL bank credit card best thing i found is that they use to give good offers in shopping, discount offers cash back are available whenever i use for shopping. They have been charging me annual fee, but waiver option is available, they use to give good service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
    • SBI Cards Credit Card
      "GOOD"
      0.5 4.0/5 "Great!"
      I am having the credit card with the SBI CARD where the credit limit with this card is good with no issues. The customer service is good and they have given with the payable card but there was option of wavier off available. They are providing with EMI option.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 22, 2019
    • Axis Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I am using Axis bank credit card, where i am very satisfied with credit limit which they have been giving to me, their customer service is good, they use to response me well, it is life time free credit card have been got from them, their offers are good, so far i did not face any issue.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
    • HDFC Bank Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I am holding the credit card with the HDFC BANK where the card has the good credit limit added on that the customer service is good. There is a option available of EMI conversion where the payment can be converted and paid with hassle free. It is a payable but wavier option is there.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 22, 2019
    • Bank Bazaar Credit Card
      "USERFRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bankbazaar.com and i have a good experience also i have been using through the website as the portal is convenient and user friendly to access. The customer service is good and responsive they explain the details of the card.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 22, 2019
    • Citibank Credit Card
      "BETTER"
      0.5 5.0/5 "Blown Away!"
      The documentation process was simple and easy to get the card with the CITI BANK. It took may be 1 week to 15 days approx to get the card. The credit limit is good, it is a life time free card. I am using from last one month, i am getting rewards points.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 22, 2019
    • IndusInd Bank Credit Card
      "Good card"
      0.5 4.5/5 "Excellent!"
      INDUSIND BANK PLATINUM AURA EDGE CREDIT CARD recently i had applied, they have been not charging me annual fee, it is life time free credit limit, the best thing i like in them is that it is easily available in many outlets, and it is life time free credit card, the card came on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
    • Bank Bazaar Credit Card
      "Grateful to Bank bazaar service"
      0.5 4.5/5 "Excellent!"
      I am so thankful to the bank bazaar service . When I am looking for a new credit card , I applied immediately in Bank bazaar . They chosen me the correct credit card and given me a Rs 750 coupon also. This is something new for me . They are doing a great service on behalf of banking sector .
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 22, 2019
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