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

    Card
    1st Year Fee
    Rewards
    Joining Perks
    499
    Response Time Within 30 minutes
    Paperless approval option available
    0
    Response Time Within 30 minutes
    3000
    Response Time Within 30 minutes
    1000
    Response Time Within 30 minutes
    Instant Decision
    0
    Response Time Within 30 minutes
    2500
    Response Time Within 30 minutes
    10000
    Response Time Within 30 minutes
    0
    Response Time Within 30 minutes
    9999
    Response Time Within 30 minutes
    2500
    Response Time Within 30 minutes
    10000
    Response Time Within 30 minutes
    499
    Response Time Within 30 minutes
    Paperless approval option available
    Close

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    Overview:

    There are significant differences between debit cards and credit cards in relation to the way they function, availability and access to money, features and benefits and much more. 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. The debit card holder can use the card to make purchases it if they have funds available in the account. A credit card is offered by lenders to those who fulfill various eligibility criteria and a separate credit card account in 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 is 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 not available on debit cards.

    EMI facility is available on credit cards.

    No repayment required.

    Repayment of outstanding amount can be either as revolving credit - payment of minimum due amount on the credit card account, 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 of payment.

    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 received.

    Monthly credit statement is sent to the borrower with details of bills, transactions, total credit outstanding, minimum amount due and due date of payment.

    A savings/current account holder in a Bank 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 on losses incurred from the theft and misuse of a credit card.

    The transactions made on the 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 alternately, it 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.

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