Credit card and debit card both use for doing payments. But In Credit Card Vs Debit Card, What are the difference & Pros And Cons?
If you want to choose a card option for doing payments, you have two options, credit card and debit card. Mostly peoples go with debit card because of no knowledge.
Debit card and credit card both comes with many advantages and disadvantages. Here are some difference between both.
Interest Rate
Debit cards are linked with your bank, so they are not charging any interest rate, But credit card is like a loan, so they will charge some interest sometimes high. But almost all credit cards come with 40 to 50 days no interest period.
Protection
Mostly credit cards are come with fraud protection feature. So you are more safe with credit card. Some Debit cards also offer good protection, but not all.
Credit Score
You should maintain a healthy credit score, but debit card has no impact on your credit score. Credit cards may increase or decrease your credit score, You should use wisely.
Rewards
Credit cards are known for rewards points. You can withdraw or buy things from your points. Debit cards are very bad in reward points, but now they are also offering reward program.
Spending
Credit Card may increase your spendings and budget, This can impact on your credit score. Debit cards are good for controlling your budget.
Annual Fees
Fees on debit cards are very low or nil, But credit cards are charging huge fees. Some credit cards also offering No fees.
Also Read = Amazon Credit Card Vs Flipkart Credit Card
ATM Withdrawal
You can use both debit and credit card in ATM, but debit cards are more suitable for ATM use. Mostly credit card will charge heavy penalty and interest rates on ATM withdrawals. So you should choose debit card for ATM transactions.
Payment Time
Debit card will demand instant money from your bank, but you are free to pay after specific time In credit cards. Credit card is also good for emergency funds.
Benefits
There are some benefits of both credit card and debit card:
Credit Card
- Travel Benefits
- Cashback
- Reward Points
- Instant Fund
- Fraud Protection
Debit Card
- Good For Controlling Budget
- Allow In All ATM
- Widely Accepted
- No Impact On Credit Score
- No Extra Chargers
Also Read = Credit Card Pros And Cons
So that’s the Credit Card Vs Debit Card Differences With Pros And Cons.