Credit Cards vs. Debit Cards: Are Credit Cards more Beneficial than a Debit Card


To sustain life in digital banking economy, you need to have basic knowledge of banking things and also you have to use banking services. Almost 60% of users in the world don’t know how to use the debit card even they don’t know how to create a bank account. Even some users are confused to choose between credit card. 

So, helping users to decide to use either debit card or credit card, we provided a guide here. Once you read the entire article, you will be ready to choose your financial card.


Many users don’t take advantage of a debit card or credit card even after they have the option to use it. The reason behind it majorly lacks knowledge about it or have a habit to use only checks. Even banks provide enough information about ATM card and credit card, many people confused between them as they don’t know the difference between them.

There is lots of difference between them. Both are better for a different purpose. 

So, Debit Card vs. Credit Card: Which Is Better?

  • Debit card:

The debit card is directly linked with your bank accounts. When you use it for any payment methods like for shopping, transferring money from one account to another or withdraw money from a bank account, payable money directly deducts from your bank account immediately. 

A debit card is just like a plastic card allow you to use almost all types of banking services like withdrawing money, payment transfer and lots of other services. Depending on your total bank balance, you can spend money as you want.  You need enough balance in your bank account in order to spend money anywhere.

Each transaction you made through a debit card, will appear separately in bank statements. As a debit card is directly associated with bank account balance and bill settlement have done in real-time,  users of debit card can’t get benefits of an interest-free period.

  • Credit Card:

Credit card is also plastic card allow which allow you to use all feature of a debit card as well as some other special feature like reward points. Credit card users get some pre-defined credit limit to spend money anywhere you want. It’s like short term loan provided by a bank to spend money online, withdraw money from ATM anywhere.

As credit card is associated with some credit limit you can’t spend more than that limit. When you do a transaction with a credit card, payable amount deducts from your credit limit. There is not any limit of transaction you can do with a credit card. Here, Money is not directly deducted from your bank account directly. It deducts from your credit limit.

At the end of the billing cycle, users get a credit card statement to pay back that money you spend. Once you pay back your spending amount, your credit limit restores to back after billing cycle. 

The credit card has lots of benefits over a debit card as below:

Advantages of Credit Cards:

  • Help to increase your credit score so that you can get loans easily
  • Provides security protection for card theft or loss
  • Provide reward points for each transaction which you use to get a free gift or redeem on any online services
  • Provide an EMI option for any online or offline purchase
  • Give interest-free period


Finally, you can choose either a debit card or credit card according to your needs. If you don’t need to spend heavy every month, stick with only debit card. Credit card is the best option for those who often need money every month and doing a job.