Though the debit card is your debit money and credit card is your credit money, let’s drill down the exact differences between a debit card and a credit card.
What is a debit card?
When a debit card is used, money is immediately taken out of the user’s checking account. It is also known as a plastic card, bank card, or check card. With a debit card, users can make purchases and have money electronically transferred from their bank accounts.
What is a credit card?
A credit card is a type of credit facility offered by banks. It enables users to borrow money up to a pre-approved credit limit. Customers can use it to transact in the purchase of goods and services.
A credit card is also referred to as CC.
Debit Card VS Credit Card (Key Differences)
While debit cards take money directly out of your bank account, credit cards give you access to a line of credit provided by a bank.
The major differences between a debit card and a credit card are summarized in the table.
| Debit Card | Credit Card |
| Used when you have a balance in your banking account. | Used regardless of the balance on your account as per the available credit limit set by your bank. |
| Same as prepaid. Put your money into your account and then use it. | Same as post-paid. First use then pay. |
| You will get interest for keeping your balance on your savings account. | You have to pay the interest if you didn’t pay the credit bill by the due date. |
| Can’t be used for EMIs. | Attractive EMI options are applicable only for Credit Cards. |
| Most banks offer you a free debit card immediately when you apply for the account. | Getting a credit card is difficult. Your monthly earnings and credit score are considered. |