Having a confusion about which to choose between a debit card and a credit card? Want to know more about the uses and benefits of each? Wondering when to apply for credit card and when to apply for a debit card?

Debit cards are connected directly to your bank account (such as a salary or savings account). When you use your Debit Card, the funds are instantly debited from your bank account. 

Credit cards enable you to buy now and pay later. You can get instant credit card approval and when you use your credit card, your bank offers credit to you for a set length of time. You must pay the bank for your purchase by a certain date (also called the due date). Aside from that, depending on the Credit Card you choose, you will receive a variety of extra perks.

Here are some of the points based on which you can compare the both and make your final decision. 

1. Credit Limitation 

• Monthly credit limitations on credit cards vary depending on the type of card you have, your connection with the bank, and your creditworthiness. 
• Debit Cards can only be used up to the amount in your bank account. The bank, on the other hand, may impose a daily spend restriction on your card.

 2. Features for security

• Credit and debit cards both offer comparable security features, such as SMS alerts, PIN and OTP. 
• Many Credit Cards have zero liability insurance* for stolen and lost cards, which Debit Cards do not.

3.  Usage 

• In terms of usage, there is generally no difference between Debit Cards and Credit Cards. Both may be used in stores and on the internet. 
• Certain sorts of transactions or websites, on the other hand, may exclusively accept Credit Cards.

4. Benefits 

• Credit cards provide a variety of advantages and bonuses, such as cashbacks, discounts, and, most importantly, points that may be converted into free flights and exciting presents. 

– Purchase now and pay later

– Take advantage of 50 days of interest-free financing. 

– Earn cashback, discounts, points, and miles. 

– Repayment depending on EMIs

• Debit cards also provide advantages such as discounts and cashbacks.

– What you spend is deducted from your account immediately. 

– No payback is required. 

– There are no interest costs. 

– Receive cashbacks and discounts

5. Fees for each year 

• Many credit cards have no annual fee. Some do levy an annual fee, which is eliminated if you spend a specific amount on the card. A few specialized credit cards include an annual fee. 
• Banks rarely impose yearly or renewal fees for Debit Cards.

  6. Interest 

• Credit cards offer interest-free credit for up to 50 days. You must settle your outstanding balance by the due date to avoid interest. 
• In the case of a Debit Card, no interest is required because the money is deducted immediately from your account.

  7. Withdrawals from ATMs 

• Cash withdrawals on a credit card are subject to a charge and interest. 
• Debit cards, in general, do not charge a cash withdrawal fee, especially if you use an ATM at your bank. 
• A daily cash withdrawal limit applies to both Debit Cards and Credit Cards. Credit cards may also have a monthly withdrawal restriction.