What is the Difference between Debit & a Credit Card?

Banks generally offer two types of cards, debit card and credit cards. There are numerous differences between the two cards. A person having a savings or a current account can avail the debit card, you can read more about it at loanbaba. However, in the case of credit cards, there are certain criteria one has to meet in order to get the card.

To avail a credit card, one has to open a separate credit card account that has a specified credit limit offered by the lender. Thus, a best credit card enables the user to enjoy short-term loans to be repaid at a due date. Any amount unpaid will connect to an interest charge. Learn by reading more below at loanbaba.com.

What is difference between debit & credit card? Find more details in the table below.

Debit Card Credit Card
The amount present in your savings or current account can be used to make transactions. Transactions are possible till the credit limit of the card.
Availability of funds depends on the amount you've invested in the account Availability of funds depends on your credit limit.
Interest can be earned on the amount invested Interest in charged on the credit availed.
EMI facility isn't present on a debit card EMI facility is available on a credit card
No repayment of amount is required Repayment of the credit is required. One can either repay the entire outstanding amount or make the minimum payment carry forwarding the balance.
Charges applicable are joining fees, annual fees, processing fees, etc. Charges applicable are joining fees, annual fees, late payment fees, penalties, processing fees, etc.
The customers can get a monthly bank statement Users get a monthly credit statement stating the bills and transaction details, outstanding amount, due date for payment, etc.
Anyone holding a savings or a current account can apply for a debit card One can avail credit card on meeting certain criteria. For example, your credit history, debt income ratio, transaction history, etc.
Bank less often offers a fraud liability. Credit cards have a high fraud liability. They also have insurance covers o protect your card from thefts and misuse.
Debit card transactions do not affect the credit history of an individual Transactions made through credit cards do affect the credit score of the user.
User gets limited overdraft facility Users can enjoy overdraft facilities. In case of excess use, an over limit fee is charged.
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