Difference Between Debit Card And Credit Card 2023

Difference Between Debit Card And Credit Card | In this post we are giving info about credit card and debit card. both debit cards and credit cards why do we need in daily life. we explained. (debit vs credit card)

Difference Between Debit Card And Credit Card

What is a Debit card?

The debit card can be described as a payment option utilized as a substitute for cash.
Two main debit cards can be called debit cards or bank debit cards. These cards can be acquired by opening a debit card and prepaid card account.

Although prepaid cards aren’t solely debit cards, they aren’t able to work or be treated identically.

What is a credit card?

Credit cards provide an account that allows you to borrow funds to purchase items. Many credit cards will enable you to advance cash and move balances. If you use credit cards, you’re bound to pay your credit card company for the amount you borrowed, as well as any interest you incur.

Let’s look at the main distinction between credit cards and debit cards. When you use your credit card to make cashless transactions, your spending amount is recorded on your credit card’s bill, and This is because the bank that issued your credit card is the one to pay the merchant whenever you make purchases.

Then, after receiving the invoice from your credit card’s issuing bank, pay or transfer the exact quantity to the bank.

If you pay in time or before the due date, the bank will not make any interest charges. If, however, you make a late payment, the company that issued your credit card could be charged interest on the amount you spent.

Debit Cards (Pros, Cons)


  • There is no obligation to repay since you’re paying yourself with your funds.
  • It’s cheaper to buy because there aren’t any interest charges to be paid.
  • It also serves in the capacity of an ATM card, which means you can use it to withdraw cash from ATMs.
  • The process of approving a debit card is much easier and quicker.
  • It doesn’t help to build a credit history.


  • There is no way to keep disposable cash in your account as it’s directly debited.
  • It can be challenging to keep track of your account at the end of the month if you do not keep an eye on your expenditure.
  • You could be charged an additional charge if you take money from another ATM. There is very little security in the case of fraud with debit cards.

Credit Cards (Pros, Cons)


  • Credit cards are convenient and eliminate carrying cash around along.
  • Credit cards can help you improve your credit rating.
  • The rewards you earn are more than those you make on debit cards.
  • They give you flexibility in spending because they have relatively large credit limits.


  • You’ll be assessed a significant interest if you fail to complete your payment on time and in full.
  • Credit cards come with various charges.
  • In the event of a missed payment, it (even because of legitimate motives) can negatively damage the credit rating. Then you’ll have to work more challenging to rebuild it.
  • Although there’s a credit limit, you can be attracted to spend more money than you can afford. This could lead to credit card debt.

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