Debit Card vs Credit Card

It could be possible that you have both – a debit card and credit card. But do you know which one among the two you need the most to manage your finances? If not, then here’s a brief guide on what you need to know about these cards.

What is a Debit Card?

Simply put, debit cards offer you the convenience of credit cards except the fact that every time you make a purchase your money is deducted from your account as payment. You can also use debit cards to withdraw cash from ATMs. Key in the PIN and put the amount number to extract cash instantly.

How do debit cards work?

  • They are linked to the funds in your bank account.
  • Swipe the card while making a purchase.
  • Key the PIN to carry out the transaction.
  • The amount will be deducted from your bank account.

Here are some of the pros and cons of using a debit card.


  • You can spend only the amount you have in your account.
  • Universally accepted among most merchants.
  • It’s a great alternative for cash.
  • It helps manage your finances


  • Not that safe compared to credit cards when making a purchase online.
  • There are no rewards programmes with debit cards.
  • It doesn’t help you build your credit score.
  • You might have to pay additional charges.

What is a Credit Card?

Credit cards allow you to make purchases through credit with the bank. It usually comes with a credit limit beyond which you cannot make a purchase. However, interest is charged on your outstanding amount every month, which you have to diligently pay without fail. You can make full use of cards by using promotions, discounts, and other offers.

Here are some of the pros and cons of using a credit card.


  • You can earn rewards, cashback, discounts, and more with credit cards.
  • In case you don’t have enough funds in your account, especially in an emergency situation, you can use credit cards as an alternative.
  • It helps build your credit score.
  • Safer and less prone to fraudulent attacks when making online purchases.


  • Interest rates can be quite high.
  • You have to pay a penalty fee in case of repayment failure.
  • If you default, your credit rating will take a hit.
  • Your debt will keep piling up in case you pay the minimum amount every month.

The Verdict

Both the cards have their own share of benefits. You can use credit cards if you are sure that you can handle the monthly repayments. Debit cards on the other hand helps you manage your finances conveniently, but they don’t come with rewards programme like credit cards.

So, either you use both the types of cards or go for any one depending on how you plan to use it. Just remember. both credit cards and debit cards can be your friends for life only if you use them responsibly.

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