There is so many difference between credit card and debit card. Debit is when a person withdraws money. The user can only use the amount that is present in his bank account and can’t take more than that. A debit card acts like a cheque, which the amount of money uses to deduct from their personal bank account.
The user receives credit money as a loan using the credit card. A user needs to repay the amount used from credit card within the time limit. You can also check these Money management tips to brighten your future. Let’s have detailed information regarding the debit card and credit card;
The bank offers a debit card to its customers to withdraw and to purchase goods and services from their bank’s saving account. So, when the user does any transaction with a debit card then it will be reduced from the user’s bank account. In the case of a debit card, the bank used to charge a nominal amount for every month for the usage.
Debit cards can be used for withdrawal of money, transfer of funds, deposits, purchase of goods and services and internet banking, etc. Nowadays, a debit card is mostly used by everyone and even allows users to have all the facilities of a debit card or ATM card.
The banks provide the credit card facility to their users for the withdrawal of money, purchase goods and services. The user should pay the credit amount to a bank that spends through his credit card.
The bank used to spend money on the behalf of the customer and will collect the credit amount with a period. Every user has a maximum of 30days as a credit period. And if the user couldn’t pay the amount with the credit period then the bank will charge the interest as per rate.
Magnetic strip attaching to it contains all the general bank account details of the customer.
Main Differences Between Credit Card and Debit Card:
- The user should have a bank account for a debit card but not for a credit card.
- One of the major difference between debit and credit card is, the amount withdrawn from a debit card is deducted from a bank account which is linked to the debit card, in the case of a credit card the amount will not be deducted from the bank account.
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- Bank will charge interest for credit cards and not for debit cards.
- The Debit card withdrawal limit depends upon the balance in the bank account.
- In the case of a credit card, the maximum withdrawal limit depends upon the credit rating of the user.
These are the few major differences between the debit card and credit card that everyone should know about them. For all financial aid and guidance, keep making your way to FinanceShed.