Learn When To Use A Debit And Credit Card For Your Purchases

Learn When To Use A Debit And Credit Card For Your Purchases

Debit And Credit Card

Have you found yourself confused while choosing between debit and credit cards? It isn’t bad if you have been mistaken. They both are accepted in most places, and they both offer the convenience of payment by eliminating the requirement to carry cash. 

The only fundamental difference between the two is that your debit card draws money from your bank account, while your credit card draws money from your pre-approved credit limit. Let’s understand more about debit and credit card use and benefits

What is a debit card?

Debit cards are a great way to make payments directly from your bank account at any shop or merchant website. It also helps you draw money from a nearby ATM for cash transactions.

Debit card benefits

  • You need not pay interest when you spend money
  • Using debit cards does not affect your credit history
  • Money is deducted when you spend from your account immediately

What is a credit card?

Credit cards are a great way to make a payment without worrying whether you have money in your account or not. Credit cards can help you avail of deals and discounts from many merchants. You can pay for all the money you spend at once when you pay for your monthly credit card use. 

Credit card benefits

  • You can pay up to a credit limit decided by your lender
  • Pay interest only if you fail to pay within your credit cycle
  • Need not worry whether you have money in your bank account while making a purchase

Debit card vs Credit card

Using a debit card stops you from overspending. After all, it does not allow you to make a payment beyond the balance in your bank account. A credit card enables you to make a payment irrespective of your current bank balance. It determines your credit allowance based on your credit history. So, a credit limit of INR 10,000 does not mean that you can financially repay it next month. So, make sure to manage your finances properly while claiming a credit card benefit.

Choosing the best card for a situation

To determine whether you should go for a credit card or a debit card, you should be honest about your ability to handle credit. If you have doubts about your money management skills, then you should not make big purchases using a credit card. It is highly advisable not to get trapped in a credit debt unnecessarily. However, at times, choosing the best card depends on the purchase.

Using credit card benefits, you can avail of deals and offers during festive seasons. You can use your credit card to build your credit score. By making timely repayments, you can prove yourself as a responsible and creditworthy customer. It reflects in your credit history, and lenders will are likely to approve your loan in the future.


The use of both debit and credit cards has helped customers pay for goods and services without the need to carry cash and gradually move towards a cashless economy. Both have their benefits and limitations. You should use both debit cards and credit cards according to the nature of your transaction.

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