In today’s time, almost everyone has a debit card. But very few people have a credit card. People know a little about debit cards but people have very little information about credit cards. In such a situation, we thought why not get complete information about debit card and credit card. Friends, in today’s post we will know complete information about credit card and debit card in detail.
What is a Debit Card?
When we open an account in a bank, we are also given a card which is called ATM Card. And let us tell you that ATM card is called debit card. It is a plastic card with the help of which you can do online transactions sitting at home and can also withdraw money from ATM at any time.
Debit card is a very powerful card with the help of which you can also do online shopping sitting at home. You can pay for it online with the help of debit card. Your debit card is linked to your bank account, due to which whenever you make any transaction with debit card, that money is debited directly from your bank account.
What is a Credit Card?
Most people do not know about credit cards. Credit card is also a type of plastic card which is issued by the bank. It is completely different from the debit card. Like the debit card, it is not linked to any bank account. Let us tell you that apart from the bank, credit card is also provided by many finance companies.
Credit directly means “loan” – some loan is given to the customer by the bank or finance company in the form of a credit card. With the help of which the customer can buy services or goods of that amount. But with the promise that all those loans will be paid later. Let us tell you that some percentage of interest is also charged on the loan provided in the form of credit card, which has to be paid at the time of payment.
Difference Between Debit Card and Credit Card?
- With a debit card, we withdraw money from our bank account. Whereas through a credit card, we borrow money from a bank or finance company.
- PIN has to be used while transacting with a debit card. Whereas in a credit card, no pin has to be entered during a transaction.
- Money can be withdrawn from an ATM through a debit card, whereas this facility is not available in a credit card.
- Both debit card and credit card are similar in size and color. Both are plastic cards. There is no difference here.
- We do not have to pay any kind of interest on the use of a debit card, whereas on using a credit card, interest has to be paid on the amount withdrawn.
- The limit for online transactions with a debit card is up to the amount available in our bank account. But the limit of a credit card is determined by the bank or finance company that issues it.
- The service charge levied by the bank on debit cards is very low. Whereas the service charge on credit cards is quite high.
- Debit cards are accepted only in the country. But credit cards are commonly used all over the world. However, now debit cards are also available as international debit cards, which can be used all over the world just like credit cards.
Conclusion
So friends, now you must have known about debit card and credit card. What is a debit card? What is a credit card? Difference between debit card and credit card? Hopefully, from this post you have got useful information regarding Difference between debit card and credit card. If you have any question regarding this post, then you can tell us by commenting in the comment box given below. Your feedback and suggestions are welcome as always. Thank you.
