What is the difference between Debit Card and Credit Card

If you have a bank account and want to take a card from your bank for ATM or online transactions or for shopping, then you are probably asked that what type of card you want. There are many types of cards, mainly Debit card and Credit card. But wait, are you know the difference and terms and conditions of having a Debit and Credit card.....

What is Debit Card ?

    You have a bank account and there is some money in your savings account that you have earned. So, if you don't want to go to your bank all the time to withdraw your money for your daily life, then there is a card named credit card that let you do all your transactions direct from your savings account. There is a card number printed on your card and a CVV number printed on the backside of your card. And you have to remember a pin for security. Whenever you want to transact your money from your bank account to cash or to another bank account, you will be asked that pin. But whenever you want to purchase something on e-commerce websites or want to pay online, you will be asked for entering the card number and CVV. Then a OTP will be send to your registered mobile number with your bank, and you have to enter that pin to complete the transaction.

    But there is a transaction fee based upon the amount of money you are transferring every time you use your Debit card. But there are some exceptions also like some apps does no cut the transaction fee. Like if you add money to PAYTM from your bank account using Debit card, there is no transaction fees.

What is Credit Card ?

    Although the transaction method is quite similar to Debit card, there is a huge difference between the two. In case of credit card, every time you transact any amount of money, you are taking a loan from your bank. After taking the loan you have to submit the amount to your bank within 30 days(based on bank it submission time can differ). There is a transaction limit also in your Credit card that your bank decide.

    If you can't deposit the amount you have taken from your bank via Credit card within the time or taken more than your limit, then there will attach interest rate on that amount.

    But before having a credit card your bank will verify your eligibility; like- can you really afford the loan or can submit the amount that you will take from credit card or if money come to your account every month regularly or not etc etc.....