Credit card vs Debit card: Which is better and why


Credit and Debit cards seem similar due to certain features. For instance, they both have a sixteen digit code, along with an expiry date printed on the front side and a 3 digit CVV code printed on the back of the card. But when it comes to their working mechanism, there is a lot of difference between the two cards.

When you purchase something from a debit card, the money gets debited instantly from the bank account with which the debit card is linked. But when you purchase something from a credit card, the amount is added to your credit card bill which you will need to pay at the end of the month. A debit card allows a customer to spend the money from the bank account electronically while credit card allows a person to purchase up to a certain limit.

The credit and debit cards have their unique set of advantages, and which is why it is always a wiser option to have both of them.

So many people struggle to understand what exactly is a credit card? Well, in simple words, a credit card works more like a loan provider which must be paid at a monthly billing cycle. When you purchase or pay anything using a credit card, the amount is provided to you by the credit card company as a loan which is added to your bill which is to be paid back. If you fail to pay the loaned amount in the allocated time, then you will be charged with a penalty along with the accumulation of interest and a negative credit score.

Which is better?

As per a survey of users who use both credit and debit card, a debit card is more useful as the debit card allows you to spend as per your financial capabilities. You can only spend the amount that is in your bank account but when it comes to paying using a credit card, most of the time, people cross their financial limits and fail to pay the bill at the end of the month which leads to accumulation of late fees, interest charges and the pressure levies upon them. Even though using a credit card is tempting as the money won’t be charged from your account instantly, and you can even shop or pay bills even if you don’t have any balance in your bank account, but the chances are high that you may fall in the trap of debt.

As far as security is concerned, many individuals imagine that it is more secure to utilize a Debit card than a Credit Card. They trust that a Debit card offers upgraded security in contrast to a Credit. The facts confirm that a credit card comes in extraordinarily helpful amid times of crisis, when we have to spend on state flight tickets or medical expenses yet don’t have that measure of money available to us that exact instant. There is a gigantic flipside to the equivalent being that the card accompanies the enticement of overspending and gets the customers into an endless loop of obligation.

Credit cards and debit cards have their unique features and benefits. While a debit card allows you to spend money while adhering to your limits. On the other hand, a credit card provides you with financial support during emergencies. There are a lot of facts about credit cards that most people don’t know. You can click to know more.

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