|Difference between Debit Card and Credit Card|
Hi Guys! You have heard about different Cash Cards like debit cards, ATM cards, Credit cards. When you Open new bank account, you can ask for different cards for your use. In this technological arena, the need of cash cards has increased. Whether you have to pay money to someone or purchase something online, these cards are very necessary. But many people are unaware of difference between Debit Card and Credit Card. So in this post I will be sharing information about these cards.
What is Debit Card?
A debit Card is similar to your ATM cards using which we can pay online or withdraw money from ATM Machines. This Card is connected to your bank saving or current account. When you make transaction using debit card, money is deducted directly from your bank account linked with card. You can simply understand this card as mobile SIM Card. When you recharge SIM card with some amount, you can talk only for that prepaid balance only. Once balanced is finished, you can not make a Call.
Similarly, you can make transaction up to the amount that is in your bank account. You can not pay more than your saved money in your bank account. The debit card has a Visa® or Mastercard® logo on its face.
You can use Debit Cards to pay your bills online, withdraw money from ATM machines, etc. It is easier to get debit cards.
What is Credit Card?
These type of Credit Cards gives us facility to use money more than our bank account saving. It is like borrowing money. You have to pay this money back to the Credit Card issuer with interest within some time. It is similar to loan. The advantage with credit card is that you can use or withdraw money more than in your bank account. You can easily withdraw money from ATM machines using credit cards. You can also buy something on EMI using your card. After that you can return this money back with interest.
Well, it is difficult to save money in your bank account. On the other hand, interest rate are high. Here credit limit is set by the card issuer. It is difficult to get credit cards.
You can read comparison between these two cards.
Also Read: What are Virtual Credit Cards?
I hope you get the basic difference between Debit Card and Credit Card. If you like this post then don’t forget to share with your friends on social media.