Credit Card Vs Debit Card – Which is Better For Payment?

Credit cards and debit cards are both used for many purposes. Both of them are used to make purchases. But, there is a difference between both cards. Debit cards eliminate the need to carry cash. Your account and debit card are linked. When you swipe the debit card, the amount gets deducted from your bank account. It is either connected to your savings or current account. You can withdraw money through ATM by using the debit card.

While credit card uses bank credit, when you use a credit card or purchase with a credit card, you have to pay the amount to the bank. You have to pay this amount at a specific time. It is known as the due date. Credit cards have interest rates and fees. Your credit card balance and credit history also affect your credit score. Now let us take a look at differences between credit and debit cards.

Credit Limit

Credit Cards have credit limits. This limit depends on many factors, like the type of card you own. Your credit score. Using credit cards means you are lending amounts from the bank. Your expenses should not exceed the credit limit.

While the Debit card uses the amount that is present in the bank account, however, some banks have a buying limit.

ATM withdrawals

Both credit and debit give you the facility to get the cash from ATM. Withdrawing amount with a credit card comes with fees. Sometimes, interest as well.

In the case of debit cards, there are no such charges. But there is a cash withdrawal limit on both cards. For credit cards, it is the monthly limit.


You can use both these cards at almost any outlet. You can go shopping or purchase anything online without any worry. The only thing you require is a credit on your card. However, individual companies or some purchases only allow credit cards. In such cases, the credit card is more useful.

Use credit cards for making hotel reservations. For daily shopping, your debit card is a better option. Reward programs are useful for credit card users. To avail them, you must pay the balance in full before the due date.


A debit card is easy to get. All you want is a bank account to get a debit card. But getting credit cards are a different story. It has specific eligibility criteria. It depends on your earnings, credit score, and your financial condition.


The primary difference between the credit card and debit card is interest. You have to pay an interest amount if you have a credit card. If you want to avoid interest, you have to pay the due amount. Debit cards come with no such fees.

Security features

Credit cards offer better security features. They both provide PIN codes, security notifications, and other advantages. The credit card also offers protection against theft and fraud.

Final Words

Always check your card statements each month. Identify all the purchases you made. It will also allow you to detect fraudulent activity. If you found you must report it immediately. Usually, both options are good.

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