Debit Card Vs Credit Card

creditvsdebit-cards

Introduction

The number of debit card and credit card users in India is higher than other countries. The number of debit card users has increased significantly, especially after the implementation of the Jantan scheme.

More than 10 crore bank accounts have been opened under the scheme since August last year. Debit cards are issued to everyone who opens accounts. This is the main reason for the increase in the number of ATM users.

There are some differences between a debit card and a credit card. Let’s look at them:

When a person opens a savings account at a bank, the bank will give him a debit card linked to this account. Every transaction made using this debit card is done with the balance in the account.

So in the account, it is not possible to transfer money by debit card if there is no money. It is noteworthy that there are absolutely no interest rates for money transfer. Credit card usage is completely different compared to debit card. The bank will declare a certain amount as the maximum limit for credit card holders.

For example, if the ceiling in a bank account is Rs 1 lakh per person, the amount can be withdrawn without any payment. However a certain amount of interest has to be paid to the bank for this amount. Failure to pay interest within the specified period will result in penalty.

So don’t make unnecessary expenses just because money is available. Doing so will reduce the interest on the proceeds. Try to use only debit card as much as possible. It is wise to use a credit card only in emergencies. Also, the amount spent on the credit card must be paid to the bank within a specified period. Doing so can save interest.

Mohan Subramanian

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