Before going into the Difference Between Credit and Debit card well try to understand what it means:
A Debit card is a plastic or metallic card provided by the bank to their customer it is also commonly known as an ATM card, It is a payment card used to pay money directly from your bank account for any sort of purchase you make on a daily basis, every time you swipe your debit card the amount will be deducted from your account directly, it reduces the burden of carrying the cash.
A credit card is a slim rectangular plastic or a metallic card issued by Banks or financial institutions, which lets you borrow funds from a pre-approved limit to pay for your purchases. The limit is decided by the institution issuing the card based on your credit score and history. Generally, the higher the credit score and the better the history, the higher is the limit.
Difference Between Credit and Debit card
|Eligibility Criteria||On the basis of the CIBIL score||No criteria|
|Maximum Limit||Depending upon the Cibil Score||Current Available balance of your saving account|
|Interest||Lewd as per the usage||Paid to the customer on the available balance of the account.|
|Penalty||Interest lewd on the bills payable after the due date||No Penalty|
|EMI Facility||No EMI Facility is provided||EMI facility provided on the basis for the transaction history|
|Withdraw||High interest is applicable on withdrawing||No Interest is charged on Withdrawing|
|Credit Score||Overdraft, Non-payment, and settlement due impacts credit score||Does not impact on Credit score|
[Read More: Things You Need To Know About Debit Card]
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