Which is better: A Credit Cards or a Debit Cards?

To make payments for your purchases, both Credit Cards and Debit Cards are available online and offline. However, there is one major credit card and debit card difference when you make the payment for your purchase. With a Debit Card, you have directly linked to your bank account instead of a Credit Card. When you use your Debit Card to purchase, the money is taken directly from your bank account.

Using a Credit Card is that you can buy now and pay later. Your bank extends your credit for the period you choose when you use your credit card. When you use your credit card, you have to pay the bank within a certain period. In addition to this, various additional benefits come with the Credit Card you choose.

Overview of a Debit Card

When a consumer uses a debit card to purchase, the money will be taken directly from the card holder’s checking account rather than borrowed from a bank. As long as the debit card is issued by a major payments processor like Visa or Mastercard, debit cards have the same benefits and many consumer safeguards as credit cards. Some consumers may prefer to use debit cards over credit cards because there are typically few or no associated fees when using debit cards until they go over their account balance and incur an overdraft fee.

Overview of a Credit Card

With a credit card, you can borrow money from a financial institution, such as a bank and use the money to make purchases. A cardholder agrees to repay the money plus interest according to the institution’s rules. In addition, by using a rewards card, users of credit cards may get cash, discounts, travel points, and various other benefits that are not available to holders of debit cards. It is possible to perform the credit card apply process online from different banks depending on your needs because various types of credit cards are available with various rewards and cashback schemes.

Credit Card and Debit Card Difference

Credit Limit 

They are subject to a monthly credit limit, which depends on the type of card you have, how long you have been with that bank, and how well-known and valuable your credit history is. 

With a debit card, you may be able to use only the amount that you have in your bank account. Nevertheless, the bank may set a minimum daily purchase limit.

Annual fees 

Annual fees on credit cards and debit cards can add up, especially if you have multiple cards. Here are some tips to avoid paying annual fees:

  • Look for cards that don’t have annual fees. Some credit card companies offer cards with no annual fee to attract customers.
  • Pay off your balance every month. If you carry a balance on your card, the interest you pay will often outweigh any annual fee.
  • Use your rewards. If you have a rewards credit card, be sure to use it enough to offset the cost of the annual fee.
  • Ask for a waiver. If you’ve been a good customer, you may be able to get the annual fee waived by calling your credit card company and asking.
  • Cancel the card. If you don’t want to pay the annual fee, you can always cancel the card. Just be sure to do so before the fee is charged.


There are a few things to keep in mind when using your credit or debit card to make purchases. First, be sure to keep your card in a safe and secure place. Secondly, only use your card for purchases that you can afford to pay off in full each month. Finally, be sure to monitor your credit or debit card statements closely to ensure that all charges are accurate. If you see any unauthorized charges, be sure to report them to your financial institution immediately.

Security features 

Similar security features are common to both Credit Card and Debit Cards, such as PINs, SMS notifications, and OTPs. 

In the case of loss or theft, the liability insurance for credit cards is usually zero, while the same is not applicable for debit cards.


There are basic eligibility criteria for most credit cards based on your income, existing relationship and creditworthiness 

If you have a savings or current account, you can apply easily for a Debit Card.

Final Thoughts

Even though the credit card and debit card differences may appear similar, there are important differences between credit cards and debit cards regarding their benefits and drawbacks. Credit card is a crucial tool for your financial journey when building credit and taking advantage of rewards. To make an informed choice, it is important to understand the expenses associated with each account. The majority of people have both a credit card and a debit card. Since each card has a different purpose, they utilize the unique benefits and features of debit and credit card in different ways. Therefore, it is more beneficial to get both cards than to choose one or the other.

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