Difference Between Credit Card and Debit Card

       Welcome to BankBoi.com,  As a major part of our day-to-day lives, cards have become a very important part of everyone's life. Have you ever wondered what's the difference between a credit card and a debit card? It may seem like just a way to pay in the stores and to buy things on the internet. But there are some major advantages that come with both of them. Debit and credit cards have long been used for financial transactions. They're some of the oldest and most widespread forms of payment in the world today. At present time, these two instruments have proven themselves as reliable means for carrying out a large number of transactions daily.  A credit card is more beneficial than debit card. The usage of both cards depends on the type of card issued by the bank.

Credit Cards and Debit Cards are unique financial tools provided by banks for different purposes of money management and usage

   When it comes to dealing with money, both debit cards and credit cards have their own advantages and disadvantages. Some may tell you that a debit card would be a better option. While the credit card has a number of advantages over it, the debit card is still very much useful in many ways. There is no right or wrong solution here, it all boils down to your personal preference and situation.

  With a debit card, you immediately have to pay for a purchase after swiping the card and signing for it. Because a bill will be sent to you for any unpaid charges, you may lose some privacy on your banking information if someone else sees it. In most cases, debit cards do not offer rewards or cash back whereas many credit cards do come with benefits.

What is Credit Card

A credit card and debit card both serve the purpose of providing you with short-term financing to buy a product or services in the market. Both these cards serve as a medium of exchange for goods or services that are bought from merchants who accept credit cards. However, both these cards have some major differences between them which makes them entirely different from each other despite serving the same purpose.


What is Debit Card

Debit card is a small plastic card that is connected to your bank account. With this card, the user can make transactions on vending machines and in stores by using the PIN. Hence, the name debit card is derived from the word 'debit' which means low balance on your bank account.

Difference Between Credit Card and Debit Card

A debit card and a credit card both function in the same way. The main difference is how the money is processed. A credit card processes the purchase via your bank account which will reflect on your credit history and can affect your credit score.

Debit Card

Credit Card

A credit card is a Plastic/ Digital Card, it is a method of payment that allows you to make purchases now and pay for them later. Credit cards are issued by banks and you borrow money from the bank when you use a credit card to make a purchase.

When you use a debit card, on the other hand, the money is transferred immediately from your account to the seller's account.





A credit card allows users to borrow money from the bank. a credit card is using borrowed money,

On the other hand, Debit Card helps in making payments through the money that is available with their bank account. With a debit card, you are using your own money. Debit cards can be used only up to the extent of funds available in your account

Credit Cards are mostly used for online transactions and purchases.

Debit Cards are mainly used for cash transactions in banks through ATMs. You can also use them for Online Transactions


It is possible to take a loan using credit cards under certain conditions and terms.

No Loan Facility

The users will have to wait until their monthly bills arrive to know about their payments with credit cards.

But, with debit cards, you will be able to know about your transaction immediately.





Credit cards come with various offers and interest-free periods, i.e., you can buy now and pay later,

Loss/theft or fraudulent use of a debit card is risky as you lose all the money available in your account immediately upon its use until you approach the issuing bank.


You have to pay some sort of fee for using both debit and credit cards but generally speaking, the fees are lower for debit cards than for credit cards.

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