By OneCard | May 30, 2023
A credit card is a financial tool that allows you to borrow money from a financial institution to pay bills and make purchases. It essentially provides you with a line of credit that you can use to make purchases up to a certain limit. Credit cards are popular and an easy way to make purchases just with a tap or swipe.
A debit card is a payment card linked to your bank or financial institution's checking account. When you use a debit card to make a purchase, the money is immediately deducted from your account balance, so you can only spend the amount of money in your account. Debit cards are widely accepted as a form of payment and are used to withdraw cash from ATMs. They offer a convenient and secure way to access funds for everyday financial transactions.
Credit cards and debit cards are both payment tools but operate differently. Credit card and debit card differences are described below.
Also Read: Understanding Credit Card Billing Cycle
There are many advantages to using a credit card. These are mentioned below.
The pros and cons of credit and debit cards are:
Also Read: How to Maximise Your Credit Card Rewards
Both debit and credit cards have their own advantages and disadvantages. Debit cards provide you with a convenient means to access funds. In contrast, credit cards offer rewards programs, purchase protection, and the ability to build a credit history.
However, using both cards responsibly, avoiding overspending, and paying bills on time to avoid fees and interest charges is important. Both cards are important, and you need to balance them both out. With a credit card, you gain the advantage of making substantial purchases, while conveniently managing your monthly bills and EMIs, ensuring timely payments.
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**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.