What Everyone Need To Know: Difference Between Credit Card And Debit Card

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We all do have Debit and Credit Card but there is always some confusion about the usage of these cards. Today we are going to discuss what is Credit and Debit Card, the difference between credit card and debit card, their usage along their advantages and disadvantages. Apparently, Debit and Credit cards look similar and have 16 digit numbers for each card, expiry date, and security code that is called Card Verification Value (CVV) as well. Let’s dive in and find out what actually is Debit and Credit card.

What is Debit Card:

A debit card is basically a card given to every bank account holder from their Bank to allow them to withdraw the money from their account. The best part is that the customer does not need to visit the branch to withdraw the money. They can visit any Automatic Teller Machine (ATM) and use the debit card to get their money from their account directly. Since it takes out the money from the Bank account, the maximum amount you can withdraw is the amount in the bank account.

What is Credit Card:

A credit card is basically a card given to a bank account holder either by its own Bank or a different bank. This card allows its holder to withdraw the money from that bank as a short-term loan which is needed to be paid within normally 1 month. Banks can issue Credit Card directly to their customers or as a third-party institution. So it does not need you to be that bank’s customer to get a credit card. If the amount is not repaid within the stipulated time frame, the bank charges interest.

Difference Between Credit Card And Debit Card:

DifferenceDebit CardCredit Card
Issuing AuthorityDebit Card can be issued by the Bank only to its customers.Credit Card can be issued by Bank to its customers and non-customers.
InterestBanks do not charge interest on the withdraw from Debit Card as it is the customer’s money.Bank charges interest on the amount unpaid after the due date as it is like a loan from the bank.
Withdraw LimitThe customers can withdraw the money up to the amount of cash they have in their account.The customers can withdraw the money up to the limit the bank has issued the card for.

Usage of Debit and Credit Card:

We do need to use the Debit and Credit Card wisely because these cards have PIN or security details and once these cards are stolen or mismanage, there are financial implications that may put you in a hard time. Credit Card needs more care as once the payment is not made on time, the Bank start to charge you interest and it makes the due higher and higher. Following is the advice to use these cards hassle-free.

  • Protect the card details safe and never share it with anyone to protect the account from unauthorized usage.
  • Make the Credit card bill payment on or before the due date to avoid any interest or late payment fee.
  • Build a good payment history if you want to increase the Credit Card limit or make your Credit score better.

Advantages of Debit Card:

  • Convenient to carry anywhere to meet the cash requirements: Debit cards can be carried anywhere to withdraw cash from ATM.
  • No need to visit the branch to withdraw day-to-day cash: Long time back, Bank customers used to visit the Bank Branch to withdraw the cash from their account. Now, this has been resolved with the Debit Card.
  • Quick access to cash: Withdrawing money from a Bank account with Debit Card is the quickest way. It just needs a few seconds to debit the Bank account and provide you the money you want.

Disadvantages of Debit Card:

  • Since the bank account is attached with this card, there are chances of fraud if someone gets the card PIN somehow so always keep the card details safe and protected and use the PIN hard to guess. Do not use simple passwords or pins such as 123456 or mobile phone numbers.
  • The debit card needs more care than actually visiting the branch for cash requirements.

Advantages of Credit Card:

  • It provides quick access to money in hard times when you do not have money in your bank account. Sometimes we cannot get the required money from our friends or family, Credit Cards can play a great role in those situations.
  • You can purchase the products on Easy Monthly Installments (EMI) and pay them off over time. E-commerce platforms such as Amazon and Flipkart avail of Zero Cost EMI as well that you can avail online easily. Click to get the Best Deals on Amazon Now.
  • You can meet short-term money needs without interest provided you repay them before the due date.

Disadvantages of Credit Card:

  • After the due date, Bank starts charging the customers the interest on the amount you have withdrawn.
  • It may cause you losses once it is stolen or theft as the transactions can be made with the card details.
  • Online unauthorized transactions or cyber frauds are always high.


In the end, we can say the optimum use of a Credit Card is necessary in order to manage your unprecedented expanses. Always try to make it on or before the due date to improve the Credit Score.

Also, read 7 Secrets About Millionaire you must know!

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