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
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I am holding the credit card of SBI CARD they have offered with the satisfactory credit limit also the card has the good offers with this card which is satisfactory with this card. The payment reflects very quick with the card also there is a EMI option.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "USERFRIENDLY PORTAL TO USE"
      0.5 4.0/5 "Great!"
      Bankbazaar.com it is the first time experience as i am using it without any hassle process. I prefer using it through the mobile application as the application is user friendly also it is convenient to access. The customer support and responsiveness is good.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      SBI has benefit of balance transfer option which can be used for card payments and its converted into EMI for 3 or 6months. Earlier used platinum card which has 3K annual charge without knowing used 2 years requested for new card then given simply save credit card with Rs.500 annual fee but reversible. The helpline number get connects easily and proper response. The charges are normal 3.5%.
      Was this review helpful? 1
      , chennai
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      There are no issues with the SBI CARDS where i am using it since from last few years. There are no charges applicable with this bank card for any of the hidden charges. The credit limit gives was satisfactory also the card is user friendly and convenient to access.
      Was this review helpful? 1
      , thane
      Reviewed on May 19, 2019
    • HDFC Bank Credit Card
      "NOT SATISFIED"
      0.5 1.0/5 "Really Bad"
      The credit limit is lesser and expecting for hike with this card where i am using it with the HDFC BANK, there is a EmI option is available, the billing date is 5 and they are debit delay and there are hidden charges are there. Using from last 2 years this card.
      Was this review helpful? 1
      , thane
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "GOOD PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bankbazaar.com as i have been using it through the website as the portal is convenient and it is user friendly to access. The customer service is good and they are responsive also they are good.
      Was this review helpful? 1
      , thane
      Reviewed on May 19, 2019
    • Axis Bank Credit Card
      "Better card"
      0.5 3.0/5 "Satisfactory"
      I am using Axis Neo credit card and am satisfied with the credit limit of 1.20L. I have received the card in 2004 and am not using much. Its a life time free credit card. The customer service is good but they are not fulfilling customer requirement. The payment mode is online.
      Was this review helpful? 1
      , chennai
      Reviewed on May 19, 2019
    • Citibank Credit Card
      "BETTER"
      0.5 3.0/5 "Satisfactory"
      The documentation process was simple and easy to get the card with the CITIBANK. The credit limit is lesser with this credit card, it is a payable card for yearly once. I am getting no offers with this card and i have started using it from last few months.
      Was this review helpful? 1
      , thane
      Reviewed on May 19, 2019
    • HDFC Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got a limit of 1.75L on my HDFC credit card and its a life time free. The services are superb and its a No.1 bank. I get online discounts during festival season. Its easy to understand terms and conditions, contacted the customer service which is toll number. I get immediate response and have another number but the procedure was lengthy to connect with the executive. There is no hidden charges.
      Was this review helpful? 1
      , chennai
      Reviewed on May 19, 2019
    • Citibank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using rewards card from Citi Bank for last 6 years. I get reward points for transactions, On spend of 100rupees=1point=0.25p where other bank conversion rate is high. The credit limit is low and annual charges waiver off is given.
      Was this review helpful? 1
      , chennai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "Better"
      0.5 4.0/5 "Great!"
      I have installed the mobile app of Bankbazaar.coma and am using the portal for long time to know some information which is easy to operate. I have applied the card for first time and the process is very much simple and convenient. Overall hassle free.
      Was this review helpful? 1
      , chennai
      Reviewed on May 19, 2019
    • American Express Credit Card
      "Need to increase the limit"
      0.5 4.0/5 "Great!"
      American Express is prompt in their card delivery, am using the card. The credit limit is low of 25K and need to increase the limit for higher level card. They are charging annual fee of 499 rupees. I got the first bill with annul fee+ GST and made it online.
      Was this review helpful? 1
      , chennai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have taken the credit card for a first time with Bank Bazaar and its good. The customer service has contacted me and got a regular follow ups. I have used the mobile application which was simple to access. Overall it was good and satisfactory.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 19, 2019
    • IndusInd Bank Credit Card
      "Average"
      0.5 4.5/5 "Excellent!"
      I have received the credit card on time from Indusind Bank Ltd and I don't find any delay on their service. The credit limit is good for me. The annual fee is not there but need to pay joining fee for one time which is 1000 rupees. I have used the card once and the bill is generated. The payment mode is easy. It does not have an offer of buy one plus one movie ticket on bookmyshow.com basically the benefits are lesser.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am using the SBI CARD which is a FBB card where i get the good offers with the FBB purchase also i get the good offers in this card. the credit limit is lesser also it is not satisfactory. The customer support is good and they are responsive, it is a good banking.
      Was this review helpful? 1
      , kolkata
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am using the credit card with the SBI CARDS where the card is payable card which is 800 rupees with this card. The application is easy and it is good to use the card also the website is also good with this bank. The payment option is good with this bank.
      Was this review helpful? 1
      , kolkata
      Reviewed on May 19, 2019
    • HSBC Bank Credit Card
      "AVERAGE"
      0.5 2.5/5 "Just OK"
      The card is not user friendly and not in fuel offers with the HSBC BANK, unable to change the pin with the ATM, i am getting offers with the book my show which is buy 1 get 1. Application is not good and it is slow and there is no ATM is available with this bank.
      Was this review helpful? 1
      , kolkata
      Reviewed on May 19, 2019
    • ICICI Bank Credit Card
      "Better "
      0.5 4.5/5 "Excellent!"
      I am using ICICI Credit card for last 3 years. I am happy with the credit limit and never gone for enhancement. They don't charge annual fee always. I got reward points and cash back offer for purchasing online. I get one movie ticket as free for every month. The customer care is very supportive. Once I tried EMI and the charges are little high.
      Was this review helpful? 1
      , mumbai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "CONVENIENT PORTAL TO USE"
      0.5 4.0/5 "Great!"
      It is the first time experience with the Bankbazaar.com as i am using it through the mobile application as the application is easy and user friendly to access. The customer service is good and they are responsive with this channel by explaining the details of the card.
      Was this review helpful? 1
      , kolkata
      Reviewed on May 19, 2019
    • YES Bank Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      It is with a life time free card so i have taken the card with the YES BANK. The documentation process was simple and easy to get the card with this bank. The credit limit is satisfactory and it is a free card. I am getting rewards points but not aware of the points.
      Was this review helpful? 1
      , kolkata
      Reviewed on May 19, 2019
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