Difference Between Credit card and Debit card

8 Difference Between Credit card and Debit card in 2022

In this developing time, everyone uses cards for bill payment shopping, and many other places. Mainly two types of cards are used all over the world. These two types of cards are credit card and debit card. Everyone uses these cards but rarely do people know the difference between credit card and debit card.

When we use these cards, it is very important to know the difference between them. Both these cards have different limits and specifications. These cards are also used in different situations. In this article, we will discuss in detail the difference between these two cards their types, advantages, and other important details.

Look wise both these cards are the same. Same sixteen-digit number, expiry date, and magnetic strips on it. Both these cards are very convenient to use while shopping online or offline. There is a key difference between both credit card and debit card.

A credit card allows the user to borrow money from the organization of the card up to certain limits. On the other hand, a debit card allows users to use only the money that is available in the connected bank account with a card. There are also different types of bank accounts, which also provide different facilities to the users.

Credit Card vs debit card

Here is the comparison of credit card vs debit card

Comparison parameters Credit card Debit Card
Definition It allows borrowing money from the issuer of the card. Money is directly deducted from the connected bank account.
Source of money The credit line is extended to the user by the card issuer. User’s bank account.
Who pays Issuer organizations pay for users’ purchases and use pay for the card issuer. The card owner pays for the purchases.
Bills Complete statements or bills are provided every month. There is no bill or history statement.
Charges Hight multiple charges. Low charges.
Interest If the user is unable to pay the borrowed money before the due date. Interest has to pay. No interest is charged.
Rewards Many rewards and cash-backs are offered. Minimum rewards are offered.
Secure More secure thane a debit card. Less secure than a debit card.

Credit card and Debit card

Credit card

It is a plastic card issued by a bank or a financial organization. Credit cards allow users to borrow money from that bank or finance organization up to certain limits. Borrowed money that is provided by the bank has to be returned with a fixed interest and terms and conditions on it.

Credit cards are available with 50 days of interest-free. If anyone wants to avoid interest on credit, the amount has to be returned within 50 days before the due date. Credit cards provide the facility to buy now and pay later.

Credit cards come with monthly limits. These limits depend upon the type of cards you are using and another factor is the relation between the user and the bank. There is a fee when the user withdraws cash from the credit card.

Credit cards sometimes charge an annual fee which depends upon the bank. Some kinds of credit cards do not charge an annual fee. There are many benefits of credit cards like cashback, discounts, and rewards. These rewards can be used for free flights and also converted into exciting gifts.

Types of Credit cards

Standard Credit Cards

Standard cards extend the credit line when their user balance is transferred and purchased. These cards have no annual fee.

Premium Credit cards

This type of credit card provides exciting services like special event access, airport lounge, and many others. But the annual fee for this car is very high.

Reward Credit cards

These cards offer exciting rewards like Travel points, cash back, and reward points according to the spending of the card user.

Balance Transfer Credit Cards

This card offers a low-interest rate and low fee on balance transfer from one credit card to another.

Secured Credit cards

These credit cards are more secure than the others. This card has to be paid to the issuer as collateral.

Charge Credit cards

This card comes with no limit for credit. But credited money has to be paid every month. This means users have to clear all previous balances of the month. After that user will be able to use a credit card next month.

Advantages of credit card
  • It provides a Warranty and purchase protection.
  • Credit card is fraud protected.
  • Builds credit history
  • Credit cards give many rewards.
  • It is extremely flexible and convenient.

Debit card

It is a payment card issued by the bank. This card is connected to the user’s bank account. When we use debit cards money is directly deducted from the user’s bank account. This card is only used up to the available balance in your account.

Bank considers a daily purchase limit on the debit card. No interest has to be paid by the user because all used money is the user’s money. On these cards banks usually don’t charge an annual fee, but a little maintenance amount is charged by the bank.

Types of Debit Cards

  1. Visa debit cards
  2. Master Card debit cards
  3. RuPay debit cards
  4. Contactless debit card
  5. Visa electron debit card
  6. Maestro debit card

Advantages of debit cards

  • No interest because always used my own money
  • Cheaper to use.
  • Also used as an ATM card without any fee.
  • don’t build a credit history.
  • Approval is very easy for debit cards.

Difference Between Credit card and Debit card

The Key differences between Credit card and Debit card

  1.  The main difference between credit card and debit card is While we use debit cards the money is directly deducted from the account of the user. On the other hand, credit cards give access to a line of credit that is issued by the finance organization or bank.
  2. Credit cards come with a monthly limit of credit. These limits depend upon which kind of credit card is used by the user. While debit cards can be used as per the available balance in the user’s account. That is why banks set a daily limit on debit cards.
  3. The credit card provides better protection against different types of fraud. But the debit card is directly connected to the user’s bank account which is less safe than credit cards.
  4. When we use a credit card for money withdrawal from the ATM a fee is charged to the user. But there is no fee charged when money is withdrawn from ATM by debit card.
  5. A credit card allows users to borrow money from the bank or issuers of the card. But there is an interest in the borrowed money. And users have to return borrowed money with interest. But spending with the debit card is users’ own money so there is no interest on that money.
  6. Some credit cards charge an annual fee and some don’t charge an annual fee. It depends upon which kind of card is used by the user. Banks usually don’t charge an annual fee on the debit card. But a little maintenance charge is deducted.
  7. Credit cards offer more rewards and cashback than debit cards.
  8. Most credit cards have very basic eligibility parameters, like income, creditworthiness, etc. And debit cards are easily available if you have a current and saving account.


Credit card and Debit card have their own advantages. Anyone can choose from these cards as per their requirements. These cards are used at many places like online shopping, online bill payments, and online investments.  If someone wants to use extra money from their account balance in that case credit cards are the best choice.

And if you don’t want to pay interest in a case debit card is good for you. Before choosing any card, research and analysis are very important. Through this article, you will be able to understand the basic concept to choose the suitable card for you.

This is all about the difference between credit card and debit card. We hope you understand the concept of credit card and debit card. if you have any suggestions, please feel free to comment on us. for more interesting topics like this visit our website differenceebetween.


Which is a better credit card or debit card

The credit card provides more security and protection from fraud. And these cards come with their advantages and disadvantages.

Can I use my debit card as a credit card?

Yes, in the case of online payment this is possible

Is there an annual fee for debit cards?

Yes, but it is very minimum.

Why Credit cards are used

Credit cards are used when a person doesn’t have enough money to buy something right now. Because credit card offers money on lend for some time.

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