People aware of the credit and debit transaction can differentiate the basic difference between debit and credit cards. However, for new users and beginners, it is a little difficult to know all the debit card and credit card differences.
Not only the basics, but this article also aims at covering the in-depth differences as well as debit card and credit card features. So just dive into the article and discover the difference between this two functional card holds.
First Thing to Know
Using your own money and using the bank’s money is the basic idea of debit cards and credit card differences. It’s just that you have to earn money first and then transact by using a debit card. Whereas, for credit cards, using the money first and repaying in installments is allowed. You can also apply for the Bajaj Finserv Bank Super Card and avail of their facilities offered.
For debit cards, you can have just the limits. The amount you are putting into the bank, you can use that much only. On the other hand, the credit card allows you to consume more with a little payment every month. Although credit cards also have their limits, they’re certainly greater than debit cards.
Tenure of Payments
Using Debit cards you can only pay once and in the bulk. It just initiates and ends the transaction then and there. There is no residue you need to think about again.
With credit card features you don’t have to pay a bulk amount altogether. It gives you enough time to earn and repay after a scheduled time. You just need to take care of the credit score by paying on time.
There’s no way you can cover any emergency using a debit card. Unless you have the amount stocked, your card is invalid. For credit cards, you can still make use of them by following a few procedures. Therefore, credit cards get you more handy usage whenever you need them. With Bajaj Finserve Bank Super Card you don’t have to worry about getting your instant loan approved.
You can get one of these credit card features in hand is not everyone’s cup of tea. Not even everyone can use it wisely. Many times, it has been witnessed how people ruin their credit score by not being able to repay a huge amount they have processed with. This can never be the case with a debit card. This is one of the basic reasons for the debit card and credit card difference that people generally don’t want to settle for credit cards.
Offers and Discounts
Both the cards are liable to get their users a few offers to avail. However, the amount is slightly more for credit cards. A credit card user can enjoy more offers as well as cash-backs which is not always the case for debit cards. Also, credit cardholders can avail themselves of a lot of other ways of earning points and redeeming them as given by the serving institution. But it is definitely not the case for debit cardholders.
The best thing is the credit history that you can display while taking loans for buying any asset. This can only be availed by credit card features and their users. For debit cards, no such system is available to show the credit history and earn a good reputation and hassle-free loan approval.
However, it can also impact negatively, if you fail to keep a clean record. If it drops below a certain number, you will be penalized and not get approved for any further loan. You can secure your credit score with Bajaj Finserve Bank Super Card.
Stress Free Option
You can purchase more with credit cards. But with debit cards, you will not think about getting your money deducted every month even before you get credited with your salary. Even if you don’t get the salary, you will still have to pay the bank. It can get stressful at times.
With both the pros and cons, you can understand better the debit card and credit card differences.