We all in our daily lives make use of both debit and credit cards, though both Debit and Credit Cards are electronic plastic cards that are used as a substitute for cash. But there are many differences between the two of them –
1. A credit card is a form of borrowing so in credit card you pay later after you purchase the thing so one can purchase to the extent of credit limit. While debit card means the cost of things one purchase will be debited from one’s account immediately, so if one doesn’t have sufficient balance in his or her account it will not work, due to insufficient balance. In other words credit card allows one to buy now and pay later while debit card while debit card one’s account get debited instantly hence it is not a borrowing.
2. One needs to have cash to the extent of purchased amount in one’s bank account if he wants to use his debit card which is not the case with the credit cards.
3. While using credit cards if one does not repay the amount within stipulated time, then interest is charged which is quite high while in debit cards there is no such interest.
4. Sophisticated telecommunication network is required in case of debit cards which is not the case with credit cards.
5. Chances of spending more than one has are high in case of credit cards then debit cards because in debit card one can only spend up to his account limit.
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