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Credit Card Vs. Debit Card: Which Is Right For Your Wallet?

Although they look similar, both credit cards and debit cards come with their own set of features and advantages. While the latter helps you stay within your budget, the former lends you money anytime, anywhere, for your urgent fund needs.

With a quick online credit card login, you can access the funds you need at the most difficult and urgent time. However, a debit card only lets you use the funds you have in your savings account associated with that card.

Credit Card Vs. Debit Card

Let’s learn more about their differences and benefits to determine which is right for your wallet.

Why Choose Credit Cards: Advantages It Brings For You!

Besides strengthening your credit portfolio, credit cards have plenty of other benefits. These include 

  • Accessibility: You can make payments for most transactions using credit cards. For instance, using credit cards from leading banks like IDFC FIRST Bank gives the benefit of airport lounge access, among many others. 
  • Rewards: Most credit cards introduce a point system to their users where they get points as a reward for every purchase. IDFC FIRST Bank credit card has a similar reward system, where you can exchange points for cashback, gift cards, and more. 
  • Flexibility: A credit card gives you the flexibility to borrow funds and use them anytime, anywhere. Moreover, it lets you return it later on a scheduled basis.

Moreover, several banks now offer lifetime free credit cards, entitling customers to free perks, numerous gifts, offers, rewards, and more. So, it’s mostly about the bank from which you apply for a credit card.

Why Choose Debit Card: Benefits It Brings For You!

  • You can use a debit card at any ATM to check your balance, generate mini statements, deposit funds, and withdraw cash.
  • Make payments without worrying about cash, as most places now accept debit card payments. However, you must have sufficient balance in your savings account to pay.
  • Unlike any credit card payment, here you won’t have to pay interest for making payments as you use your own savings to make such transactions.

So, What’s The Difference Between a Debit Card and a Credit Card?

You use your own savings to make debit card payments. So, whenever you make a transaction using this card, the same amount gets deducted from your savings account.

However, if your savings account fails to have sufficient balance, you cannot make that particular transaction. Indians mostly use debit cards to withdraw cash from ATMs for their urgent cash needs.

On the other hand, credit card payments are simpler and hassle-free as you won’t have to worry about sufficient account balance. It charges an item to your account and schedules a repayment date for it later.

So, you can make purchases and pay the amount with a reasonable interest later. It works like short-term, instant fund borrowing. You can repay credit card bills later in two ways: either paying the minimum amount due or the entire sum.

Final Thoughts

Given the benefits and key differences between debit and credit cards, credit cards are a better option. However, a blessing for one can also be a curse for others when they use things irresponsibly.

So, if you can manage your credit and make credit card purchases according to your repayment capability, it is an excellent thing to keep in your wallet. Meanwhile, a debit card is good for those who cannot manage credit responsibly and make frequent cash withdrawals.

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