What Is The Difference Between Debit Card And Credit Card? – In today’s time, many people do banking and you must have heard about debit card and credit card. Many of you must be using debit cards and there will be some people who will also use credit cards.
In comparison to the last few years, the number of users of debit cards and credit cards has increased significantly. For this, it is very important for you to know about debit card and credit card. Along with this, you also need to know which of these two cards is most useful. That is why in this article we will tell you what is the difference between debit card and credit card?
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What Is Debit Card?
Many of you must be using debit cards to withdraw money from your bank account. Actually it is a type of plastic card which is known as bank card or check card. Using this you can make any type of payment or withdraw cash from ATM.
Debit card can also be used during online shopping and money payments can be made. With a debit card, you can spend as much money as you have in your bank account.
What Is Credit Card?
Debit card is also very similar to credit card but there is a lot of difference in the rules of its use. Actually, the balance found in the credit card is a type of loan. You have got a limit in your credit card. You can pay at any place according to the same limit. Along with this, some banks also provide the facility of withdrawing some cash from ATMs through credit cards.
At present there are many people who do not understand the difference between debit card and credit card. They are often in a dilemma that what is the difference between a debit card and a credit card? That is why in this article we have given you complete information about the difference between debit card and credit card, after which you will be able to understand the difference between these two very easily.
What Is The Difference Between Debit Card And Credit Card?
Debit card and credit card are exactly the same in appearance and in the same way the 16 digit numbers written on the top of both the cards also appear exactly the same way. But there are many distinct differences in their terms of use which are explained below. Debit card and credit card are differentiated according to the difference found in the terms of use.
Own money in debit card and like credit card loan:
For your information, let us tell you that with a debit card, you can withdraw or pay only as much cash as the balance in your bank account. That is, whatever you spend or withdraw cash from the debit card is your money.
Debit card can be thought of as a pre-recharge card, that is, as long as you have balance in your account, you can spend it and when the balance in your account is exhausted then you cannot use it.
Apart from this, if we talk about credit cards, then in this you are given a limit which is like a loan. Suppose your credit card limit has been fixed at ₹30,000, then you can pay only up to ₹30,000 in it.
Along with this, whatever you spend in ₹ 30,000, all of them have to be filled at a given time. That is, it is a type of loan, which does not incur any charge on filling it on time. But if you delay beyond the specified time then you will have to pay a charge.
Interest Rate
As we told you above that in the debit card, you can spend as much money as you have in your account. Therefore, interest is not payable on the money spent in it. But if you use a credit card, then you get a limit in this, according to which you can pay money.
If you spend any money through a credit card, then a date has been fixed for it to be repaid. If you do not deposit the payment within the stipulated date, you will be charged interest and late fee.
Service Charge And Other Charges:
Service charge is levied on both debit card and credit card. But the service charge on debit card is much less as compared to credit card. If you do not make the credit card payment within the stipulated date, you will be charged a higher service charge as well as different types of charges.
But if you withdraw money through debit card, then you do not have to pay any charges. However, there is a fixed limit for withdrawing cash from the debit card in a month. If you withdraw cash more than that limit, you have to pay a service charge.
