Credit vs. Debit Cards fusebay

Credit cards and debit cards are used for multiple purposes to fulfill our daily needs without paying cash by hand. Credit cards and debit may look simply but there are some differences between them. Before jumping into the differences, we must know what is credit/ debit cards and how they operate. In this article, we will learn about these things.

Credit card

Credit cards are metallic or plastic like cards used to make the payments from it. The credit cards allow the user to pay the price without paying on cash. Credit cards are issue by the banks, finance department and other industries. The credit cards really help users to allow them to pay without carry the cash with them, just swipe the card, enter the PIN and amount you want to pay. The amount will directly pay from the bank to the account of retailer or service provider.

Credit cards is directly linked with the bank account, the banks will pay the amount on the behalf of card holder. The card holder will have to return the amount before the final date of payment. Otherwise, the banks will charge some high interest fee as a fine. The card holder must know the last day for the payment of dues and credit card limit.

Types of Credit cards

Multiple credit cards are operating in the market ie VISA, Mastercard, and American Express. Some cards are also issue by a specific retailer such as any shopping mall for the customers to pay cash through credit cards. Credit cards also give some reward if you make a payment through them. Secured credit cards are those in which the customer has to pay or submit the money in the bank and then he/she can use the credit cards.

But how do Banks evaluate the customers whether to issue the card or not? Well, there are certain factors involved in the verifications like salary or income, credit card history, and ability to pay the dues on time. Banks will issue cards to only those who will fall under their secure section otherwise, banks will give low credit against the card or even no credit cards for such customers.

Advantages of Credit cards

Disadvantages of Credit cards

Debit cards

Debit cards are the cards issued by the banks and the customers make the payment through them. The main work of debit cards is to pay the price of anything. Debit cards work as same as credit cards, but unlike credit cards, debit cards hold the money in the bank account and payments are made through the bank.

When the cardholder makes the payment money from the customer’s bank account shifts to the service provider account or anyone. With debit cards, you make the actual payment just according to the money your bank account holds.

Advantages of Debit cards

Disadvantages of Debit cards

Difference between Credit card or Debit card

Credit CardDebit Card
The money usage is issued by the bank which you to repay before the due date.Money is deducted directly from your bank account.
Have reward systemNo reward system.
Interest chargesNo interest charges.
Can fall under the debt.No debt risk.


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