Debit cards and credit cards offer you the convenience of making online and offline payments, thus allowing you to travel or shop without having to carry cash in your wallet. While they are both physical cards that allow you to make cashless transactions, there are several key differences between credit cards and debit cards.
Debit cards allow bank customers to spend money by drawing on funds they have deposited at the bank. Credit cards allow consumers to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash.
What is a debit card?
Debit cards are issued by banks against your current or savings accounts and you can use it to spend only the amount of money already available in your 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 immediately. This could be a problem during emergencies, in case you do not have sufficient balance in your account to spend.
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. The credit limit depends on various factors such as your credit score, age, income etc. Interest is charged on the outstanding amount only in case of delayed payments. You can also avail substantial reward points, cashback and discounts on movie tickets, online purchases, travel bookings and more.
As you look for the best credit card in India, you can consider the Bajaj Finserv RBL Bank credit card as it offers interest-free loan and cash withdrawal, shopping on no cost EMI facility, excellent rewards and benefits along with different types of credit cards to suit your unique needs.
Additional Read: Why Credit Cards are better than Debit Cards