Debit cards and credit cards are used on a large scale these days for making payments at both online and offline stores. One of the biggest points of discussion when it comes to these two is that which of these two are the best.
The differences between the two begin right from the way the two work. Debit cards are linked with your savings account. The moment you swipe your card, the amount gets debited from your account in real time. Thus, if you do not have the required amount of money to make the purchase, then the transaction will not get through.
Credit cards, on the other hand, have a credit limit assigned and you can make your purchases within this limit. At the time of purchase, it does not matter whether you have the required amount of money in your bank account or not as the amount of purchase is provided to you as credit which needs to be returned back in full to the lender at the end of every credit cycle.
There are few other differences between the two which are as follows -
When Shopping
Despite the fact that both credit and debit cards are used for making purchases, it is credit cards which offer more benefits. This is because not only do they not have this requirement of having money in your account but they also offer reward points for the purchase which can be redeemed for a wide range of items. This is something which you do not get on debit cards.
EMI Payments
When it comes to financing options, credit cards tend to rule the roost. This is because most of the websites and offline stores partner with credit card lenders to offer finance options to shoppers. It is not that such finance options are not available with debit cards, they are, but, they are very few in number and the repayment period is of a much lesser tenor in comparison to credit cards.
