Difference Between Credit Card And Debit Card

Before going into the Difference Between Credit and Debit card well try to understand what it means:

 

Debit Card:

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.

 

Credit Card:

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

Nature	Credit Card	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]