Why Should You Use a Credit Card Rather Than a Debit Card?


Credit cards and debit cards provide a simple, cashless, and quick form of payment, reducing the need to carry cash for any purchase. Credit and debit cards have mostly replaced traditional payment methods since their introduction as Diner cards in the late 1970s. Every bank and other significant financial institutions now offer customized credit card that facilitate the secure transfer of funds without the use of cash. Both offer enticing benefits. Are you undecided on which one to go with? Continue reading to find out the answer!

Principles of operation

Credit cards are similar to loans in that they allow you to borrow money. When someone uses their credit card to buy something, they are borrowing a certain amount of money, which they must back as part of their monthly credit card payment. Credit cards are only granted to persons who have a guaranteed monthly income that is unlikely to be influenced by minor events, making them exclusive. For the annual service provided by credit cards, there is a nominal fee.

A debit card, on the other hand, is similar to a portable plastic check that is linked to a person’s bank account. Any money transfer is debited immediately from the owner’s bank account. To facilitate transactions, the owner of a debit card must maintain a minimum balance in their particular bank account.

Report on credit

Credit cards have a direct link to the credit record of the cardholder. Credit card applicants with higher credit ratings have a better probability of being approved. If a cardholder pays off their credit card bills on time, their credit score will improve; but, if payments are not made on time, the credit score will suffer. However, because you are not using your Debit card to obtain credit, you do not need to be concerned about your credit card score.


Debit cards do not charge for any transactions unless a person is overspending, which is reflected in their bank statements as late penalties. Credit cards, on the other hand, have exorbitant interest rates. Taxes and other fees will be added to the lent amount using credit cards.

Obtaining acceptance

It is simple to obtain both debit and credit cards in today’s world. A Debit card, on the other hand, is easier to obtain than a Credit card. By opening a savings account at any bank, anyone can obtain a Debit card. A credit card, on the other hand, will necessitate a number of key elements, such as a high credit score. A Debit card may be obtained by anyone, but obtaining a Credit card is more difficult.


The credit card is a clear victor in this industry, as all data from ongoing transactions is recorded in the company’s database. When an odd transaction occurs, credit cards can send direct notifications to their owners. When a credit card is stolen, it is simple to block and renew it once it is discovered. Debit cards will not provide the same level of protection. If your debit card is taken, the thief can empty your bank account in a single transaction.


On transactions from certain confirmed buyers, both credit and debit cards offer incentives and other benefits. For example, if you shop at Amazon or other recognised e-commerce websites, the ICICI Credit Card will reward you for any purchase above Rs.1000. Debit cards do not offer as many exclusive benefits or additional features as credit cards do.

These are the few characteristics that both credit and debit cards offer. Both cards have their own set of benefits and drawbacks. Credit cards offer more security, a higher spending limit, and better rewards and offers than debit cards. Debit cards, on the other hand, give users direct access to their bank accounts, offering real-time spending information and no-cost service.

How does one decide which one to choose?

For a variety of reasons, deciding between a debit and a credit card is difficult. Debit cards are widely available and do not levy or charge fees, but they do not provide the same level of protection as credit cards. Credit cards, on the other hand, may have all the glitzy features, but their limitless spending might encourage overspending in many young or novice users. Furthermore, many consumers may vote against higher costs associated with using a credit card.

You can get a credit card if you have a steady source of income and moderate spending habits. If you’re new to cashless purchases, you should start with a debit card.

Credit cards are available from India’s largest private banks, such as ICICI, HDFC, Canara, and others, for very low costs. The ICICI Credit Card, which was launched to encourage new customers to become paperless, charges as little as Rs.99 per year for all of its services, making it simple and inexpensive for everyone.

Read Also: What effect does a credit score have on one’s financial future?

Olivia Hazelhttps://mashhap.com/
Technical Content writer, who loves to pen down her thoughts and insights in the best way possible.

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