Which Card Is Better For You, Debit Or Credit? All Your Questions Answered

Credit and debit cards often have a very similar appearance. They both contain 16-digit card numbers, expiration dates, magnetic stripes and EMV chips and both can make it simple and convenient to make purchases offline or online. Debit cards let you purchase things with the money in your bank account. With credit cards, you can borrow money from the card issuer up to a predetermined limit.

But have you thought about the actual difference between credit cards and debit cards? Why is there a need to carry a debit and a credit card and which card provides you with more benefits? Read the article to know more.

If you use a credit card to make a purchase, you will have a long repayment period. However, you must have funds in your account to use a debit card. Using a credit card gives you an advantage to receive cashback and discount offers. Such incentives may not be there on debit cards.

With the use credit card, you can easily avail of the facility of EMIs. But the debit cards do not allow you this option. Credit cards give you the option to pay an amount in EMI instalments. But it is important to remember that the instalment needs to be paid in time to maintain your credit score.

You may suffer a huge financial loss if your debit card is lost or stolen because in this case, your hard-earned money in the bank is at huge risk. On the other hand, if someone uses your credit card fraudulently, then you have the choice to immediately notify your credit card provider, which can assist you and compensate you for the fraudulent transactions. Some companies like Visa and Mastercard, hold zero liability coverage for these situations.

Debit cards don’t charge any annual fee, while many credit cards do. Using your debit card to make a cash withdrawal also does not attract any fee. On the other hand, credit cards may impose a high-interest rate on heavy transactions.