Debit cards are extremely useful and convenient as it relieves us from the stress of carrying a cash heavy wallet, a chequebook, and yet gives us the freedom to have free access to your money through ATMs and swiping the card at merchant outlets instead of paying by cash. Linked to the cardholder’s bank account, debit cards are ideal for quick and hassle-free usage.
As soon as you charge a purchase (online or offline) to your debit card (by swiping it or feeding in the card details online) the same amount gets debited from your bank account. You also receive SMS and email alerts for the same to help you keep a track of your spendings. These alerts also depend on the services provided by your card/issuing bank.
Credit cards on the other hand function differently. It is more like offering you a line of credit. In simple words it is more like you getting a loan, i.e to need to buy/spend on something this month and don’t have the cash to do so, hence you charge that spending to your credit card (without having to pay money from your wallet or account at that very moment. But the same amount is charged to your credit card bill generated the next month and that is when you have to pay that amount from your own pocket. Failing to pay your credit card bill on time leads to interest accumulation, late payment fee and bad credit score.
While a debit card is linked to your bank account, credit card is linked to the bank which has issued you the card. When you use your credit card for a transaction, technically at that time the bank is paying for it and you become debted to the bank to clear that amount whenever the bill is generated.
Most users feel that debit card is not only more convenient, but less stressful as it lets you spend within your financial abilities without accumulating and debt or interest in future. It relieves you from a lot of stress, from getting into a debt cycle and overspending. Using a credit card is tempting because you can spend a lot more than you have the cash for, but the flipside is that you end up being under the burden of clearing up the debt/loan eventually. Also, there are a lot of places in India which accept payments only in cash and debit card enables you to withdraw cash conveniently from ATMs.
There is a comprehensive table provided below which summarises the primary difference points between credit cards and debit cards –
Feature |
Credit Cards |
Debit Cards |
Bill every month |
Generated every month |
No bill generated. Account statement generated instead. |
Linked to |
The issuing bank or financial organisation |
The cardholder’s bank account. |
Credit limit/spending limit |
Credit limit assigned on a monthly basis. |
Cash withdrawal and POS limit assigned on a daily basis. Some debit cards do not have that limit. |
Interest charged |
Only if you haven’t cleared you bill on time |
As no amount is borrowed hence interest is not charged |
Credit score |
If you are consistently failing to clear your bill within the due date, it affects your credit score negatively. Please use the card responsibly to avoid the same. |
As no credit is taken, hence no question of credit score. |
In terms of security a lot of people think that it is more secure to use a debit card than a credit card. They believe that a debit card offers enhanced security in comparison to a credit card. It is true that a credit card does come in greatly handy during times of emergency, when we need to spend on say flight tickets or medical purposes but do not have that amount of cash at our disposal that very moment. There is a huge flipside to the same being, that the card comes with the temptation of overspending and getting into the vicious circle of debt.
- Steps to Check Central Bank of India Account Balance
- Platinum Identity Chip Debit Card
- Steps to change SBI registered mobile number
- Steps to Use ICICI Bank Debit Card Internationally
- MyDesign Image Debit Card
- Debit Cards For Fuel
- How to Activate Axis Bank ATM Debit Card PIN
- Expressions Debit Card – ICICI Bank
- Smart Shopper Silver Debit Card – ICICI Bank
- Steps to Block PNB Debit Card
- Debit Cards For Online Shopping
- Steps to Check Indian Bank Account Balance
- Kotak Mahindra Platinum Debit Card
- Debit Cards For Movie Tickets
- Steps to Block Central Bank of India ATM Debit Card
- HDFC Bank Rewards Debit Card
- Steps to Apply for a Canara Bank ATM Debit Card
- Central Bank of India Platinum Debit Card
- Priority Platinum Debit Card - Axis Bank
- Debit Cards vs. Credit Cards
- SbiINTOUCH Tap & Go Debit Card
- India Bank Holidays 2018
- Steps to Open SBI Savings Account
- Internet Banking
- How to Activate SBI SMS/Mobile Banking for the First Time
- SBI Quick – Missed Call Banking
- Steps to Open Punjab National Bank Savings Account
- Documents Required to Open Bank of Baroda Savings Account
- Steps to Open HDFC Bank Savings Account
- Best Zero-Balance Savings Account For Indian Citizens
- Converting Salary Account to Savings Account
- SBI Salary Account
- Steps to Open an ICICI Bank Savings Account
- SBI Savings Account For Minors
- BOB Immediate Payment Service (IMPS)
- SBI Basic Savings Bank Account
- Generating MPIN for Indian Overseas Bank Mobile Banking
- What is Inactive or Dormant Bank Account?
- Kotak 811
- ICICI Basic Savings Account
- HDFC Bank Salary Account
- Steps to Link Aadhaar card to Bank of Baroda Savings Account
- Union Bank of India Regular Savings Bank Account
- IRCTC eWallet
- Steps to Link Aadhaar Card to Bank of India Savings Account
- ICICI Bank Salary Account
- India’s Top 5 Mobile Banking Apps
- ICICI Bank Salary Account Advantages
- PNB SMS Banking Services
- Steps to Link Aadhaar card to Central Bank of India Savings Account
- Steps to Open Axis Bank Savings Account
- Axis Bank Salary Accounts
- FedBook Selfie Zero Balance Account
- Allahabad Bank Normal Savings Account
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.