Credit cards and debit cards are identical in many ways. Both these cards bear a 16-digit number and have details like the expiration dates and identification numbers (PIN or CVV) inscribed. You can use them to withdraw money from an ATM and to make cashless transactions either online or offline. However, it is also important to understand the differences between credit cards and debit cards.
While credit cards allow you to borrow money from the card issuer up to a certain limit, debit cards allow you to make cashless transactions by drawing on the funds that are already deposited in your bank account.
What is a debit card?
Debit cards are issued by banks against your current or savings accounts. When you swipe your debit card to make a payment or withdraw money from an ATM, the money is directly deducted from your account. This could pose a problem during emergencies, in case you do not have sufficient balance in your account.
What is a credit card?
On the other hand, a credit card gives you a credit limit from where you can borrow funds to make payments as and when required. You need to pay back the borrowed amount within a stipulated time, following which the limit is restored. Interest is charged on the outstanding amount only in case of delayed payments. You can also get reward points, cashback and discounts by using a credit card.
As you explore the best credit cards in India, the Bajaj Finserv RBL Bank SuperCard is one of the best options available as it offers a loan against a credit card and cash withdrawal, shopping on easy EMIs, excellent rewards and benefits along with different types of credit card to suit your unique needs.
Additional Read: Why Credit Cards are better than Debit Cards