Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card BYTES FROM OUR KITCHEN

    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.   

    Difference between Debit & Credit Card Reviews

    • ICICI Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using ICICI bank credit card for while, there service is good, they have not charge any annual fee in this bank ,and i am happy with my credit limit which they have given in this card and they provide good offer and discount in shopping and in fuel , overall service is good.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 21, 2019
    • Standard Chartered Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using standard chartered bank credit card for an while, they have not charged me annual fee in this card , as it is life time free credit card, and i am happy with my credit limit they have given me in this card, and there overall service is good.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 21, 2019
    • SBI Cards Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been holding SBI credit card for long time, they have charged me annual fee in this card. but it use to get revise it like there is waived off option is available in this card, if i spend certain amount then my annual fee will get waived off, i am happy with my credit limit they have given me good limit, there service is good.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 21, 2019
    • Citibank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using Citi bank credit card for an while, they have charged me annual fee in this card,but there is waived off option available in this card,like if i spend certain amount then my annual fee will get waived off, and i am happy with the credit limit they have given me in this card,there overall service is good.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 21, 2019
    • Axis Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using Axis bank credit card recently, they have not charged me annual fee in this card, as it is life time free card, and i am happy with the credit limit they have given me in this card, the reason for choosing this bank credit card is because they provide me good offers and there service is good.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 21, 2019
    • HDFC Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using HDFC credit card recently, they have charged me annual fee in this card, but there is waived off option available in this card ,like if i spend 90,000 in an calender year,then my annual fee will get waived off, and i am happy with the credit limit they have given me in this card, and they are giving good on line shopping offers.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 21, 2019
    • Kotak Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using Kotak mahindra platinum bank credit card for an while,they have not charged me annual fee in this card, as it is life time free credit card, and i am happy with the credit limit they have given me in this card, and they have not giving much good offers, only for shopping this card is useful.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 21, 2019
    • Citibank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been holding Citi Rewards bank credit card , they have charged me annual fee in this card they have charged me up to 500 rupees and annual fee,but there is waived off option available in this card, like if i spend certain amount they my annual fee will get waived off, and they have given me good credit limit in this card, and i am happy with reward point they use to give good reward points.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • HSBC Bank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      There are many offers are going on and there is no annual fee hence i have opted this card. I have received the card on time. I got my first month bill and the statements are clear. I used to receive a promotional updates to my mails. Once i spoke with customer care and its easy to connect.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 21, 2019
    • ICICI Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using ICICI bank credit card for long time, they have not charged em annual fee in this card ,as it is life time free credit card, and i am not happy with the credit limit ,i want to extend my credit limit, and the best thing is there offers they give good offers in regular basis.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • SBI Cards Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using Sbi credit card for long time,they have charged me annual fee in this card, but there is waived off option available in this card,like if i spend certain amount then my annual fee will get waived off ,and i am happy with the credit limit they have given me in this card, there offers are good.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • Citibank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been holding Citi INDIAN OIL bank credit card for long time, they have not charged me annual fee in this card as it is life time free credit card, and i am happy with my credit limit they have charging me in this card, there service is good, they give good offers in fuels, like in petrol they use to give good cash back and even discount.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • HDFC Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using HDFC credit card for long time,they have charged me annual fee in this card, but there is waived off option available in this card, as i spend certain amount then my annual fee will get waived off , and i am happy with the credit limit they have given me in this card, and even there offers are good.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service from past 1-2 years ,there service is good, and i came to know through on line, as i usually check the credit score and compare the bank which one would be good, i have been using mobile application, it is easy to access, and there application is user friendly, overall service is good.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • Axis Bank Credit Card
      "Excellent card"
      0.5 4.0/5 "Great!"
      I have applied for Axis bank credit card recently,the reason for choosing this bank credit card is that they give good offers in on line like in flip kart or amazon site i use to get good cash back,and they have charged me annual fee up to 250 rupees, but it is kind of life time free card,like i use to get offers or points in it , and i am happy with credit limit they have given me in this card, they have given me 25,000 i am satisfied with it,and there service is good.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service for first time, i came to know about bank bazaar service through on line, and i have been using both website and mobile application which was easy to access,and even i have applied for credit card recently, there customer team had done time to time follow up with me regarding my application.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 21, 2019
    • SBI Cards Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using SBI credit card from long time, they have not charged me annual fee in this card , as it is life time free card i have got ,and i am happy with the credit limit they have given me in this card,and there customer service is good, they provide good offers.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 21, 2019
    • ICICI Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using ICICI bank credit card for long time, the reason for choosing this card is that they are giving very good service, and they have not charged me annual fee in this card, as it is life time free credit card, and i am happy with the credit limit they have given me in this card, and there customer service is good, they use to give good offers .
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 21, 2019
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service from past six months, and i came to know about bank bazaar service through on line, as i was checking my credit report through it, and recently i have applied for credit card through bank bazaar , and i have been using mobile application ,it is easy to access and there application is user friendly application.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 21, 2019
    • HDFC Bank Credit Card
      "Bad experience"
      0.5 2.0/5 "Expected more"
      I have been applied for HDFC credit card recently, i am not happy with there service , like i have applied for regalia first card and they have given me club miles card ,i asked the customer care to change it they are not responding me and not resolving my issue , i am going to cancel this card now,i am not satisfied with there overall service, i had bad experience with this bank.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 21, 2019
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