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Credit Card vs Debit Card: Which is the Best For You?

Debit card or credit card is the best - there is no end to the debit! However, both these types of plastic money have become important and essential parts of our lives. These have made our life so easy and hassle that now it is becoming a thing of the past to carry or use cash in daily transactions.

Are you suffering from confusion that you do not want credit or debit cards for yourself? But let us tell you about the advantages and disadvantages of both cards. It will be easy to choose the right card for you considering it.
Credit Card vs Debit Card

Debit Card Benefits

Debit card is associated with our Savings or Current account. The advantages of debit card are:
  • Fee: When you use a debit card for all your transactions, you do not have to pay any type of annual payment in trouble. Debit cards are always free from any type of fee. And it does not carry any charge unless you enjoy overdraft facility in your savings account.
  • Controlled costs:  Debit cards control your costs. It does not allow you to spend extra money unless you have enough money in your Savings or Current account. However, some banks allow an overdraft limit under special circumstances, but you have to pay charges for this.
  • Free interest:  Since you do not have to carry any balance amount, you will not have to pay any interest on the debit card purchase. That means all your transactions will be free of interest.
  • Less probability of theft: The probability of theft in a  debit card is very limited. Most cards set a limit on the amount of money (as long as one can take a card holder). Card PIN (PIN) also increases the overall security of a debit card.

Difficulty Debit Card

  • Reward facility is less: The  reward points earned in your debit card transaction are far less than the credit card. Most debit cards do not provide any kind of reward points for daily transactions.
  • Do not help with credit scores: If your credit history is less than what you want, but you can not build good credit scores by spending money on debit cards. Remember, a bad credit score leads to additional problems in the case of a loan application.
  • Check balance:  If you use a debit card frequently, you will need to regularly check your account balance. Since the overdraft charge is to be charged for the extra cost, you will not be able to spend it much.

Credit Card Facility

Although credit and debit cards seem identical, there are many differences between these two. Now let's know about the benefits of credit card -

  • Reward points: When you spend on credit card, it is possible to obtain profitable options like cashback points or additional response points. This reward point can be recovered later.
  • Credit Score: If  your credit history is not according to the desired standards, the most intelligent way to increase the credit score is to use the credit card frequently. Paying timely on bill will help you to greatly improve your score.
  • Increased warranty: Most credit cards are out of the warranty of the product for different products, more long term warranty facilities are provided.
  • Improved protection:  Credit card security or security is very high in the case of fraud, thefts or duplicate charges. Besides, if your credit card is stolen, you will not have any liability for any transaction through the card.

Credit Card Difficulties

  • Excessive expenditure: The  biggest challenge in purchasing credit cards is to control their own expenses. Using a credit card can create a tendency to pay more, because you know that you will be able to pay the next time. But remember, you must pay interest for this.
  • Annual Fee:  Most credit cards have some annual or hidden fees in the form of delays, balance transfer fees or overdraft fees. You must pay these fees in order to use a credit card.
  • Credit Score Issues:  If you can not pay a monthly payment (EMI) correctly in credit card transactions, then it will have a negative impact on your credit score. Also, if you close the credit card without the total outstanding payment, it will also have a very bad effect on your credit score.
  • High rate of fees on transactions:  Credit card costs more than debit cards. And if you use a credit card instead of a debit card, you will have to pay more service tax.
Like everything else, there is a lot of disadvantages as well as the advantages of debit and credit card. Now you have to choose credit or debit card based on your own spending habits and monthly needs.

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