If you are confused about choosing between a debit and a credit card, then there are certain considerations you need to remember while making the selection. Both cards represent plastic money and look identical. Both of them bear your name, date of initiation, an expiration date, a 16-digit card number, a card verification value (CVV) and need a personal identification number (PIN) to use it.
How does a credit and a debit card differ?
There is a marked differences between a credit card and a debit card.
- A credit card permits its owner to borrow fund from the issuer of the card to make purchases and withdraw cash up to a specified pre-set limit.
- A debit card, on the other hand, allows its owner to use it to make purchases and withdraw cash from the funds deposited at the bank.
Almost every individual with some spending capacity carries at least one debit card and one credit card in their wallet. They indeed offer protection and convenience at the same time. But while it is the time to judge their usability, there are substantial differences in terms of the impact they leave on your wallet.
Despite common belief that you must use a credit card to overcome shortage of cash, you must only apply for a credit card when you have adequate funds and the affordability to repay the amount spent within the specific period. This will allow you the option to enjoy the benefit of spending without paying for any interest for a fixed timeline. Thus, a credit card is the choice for a responsible spender.
Now let’s have a comparative study between the two types of cards based on certain key features –
1. Rewards:
There was a time when the debit card was the first option to earn reward points, but gone are those days, and now a credit card is the ultimate choice to reap the rewards galore. They can be availed as discounts, cash back, travel miles and even loyalty points. You can even accumulate reward points to avail a free stay in a hotel or heavy discounts on flight bookings. So, a credit card is a more feasible option without doubt.
2. Protection in terms of purchase:
A credit card offers better purchase protection features than a debit card. Every credit card comes with different degrees of protection for the consumers against loss, theft, frauds and damages. The coverage is generally offered for a specific time period, ranging from 30-90 days. This is the reason it is wise to purchase high-tech and high-value items using the credit cards.
3. Extended warranty coverage:
Extended warranty protection can be availed against a credit card purchase, a feature which most leading credit card providers offer. It works in the same line as the original warranty offered by the manufacturer running for a time frame up to a year. There are generally no additional charges or registration fees required to avail the option. If a card offers this service and an item is charged with that card, then you are eligible to avail the benefit. There are online warranty managers assigned for each credit card network and the original warranty along with the receipt can be uploaded. A debit card doesn’t come with such advantages usually.
4. Price protection:
There are those embarrassing moments when you end up finding a product at a far lower price than what you have paid for. You also have option of price protection, offered by several chosen credit cards. A debit card probably doesn’t bear this consumer-friendly feature.
5. Travel advantages:
When it comes to travelling with your card and reaping the benefits out of it, then a debit card cannot just compete against the excellent range of perks and other advantages offered by a credit card. They bring you a diverse range of benefits in terms of trip cancellation, luggage protection and even free access to an airport lounge, and so on.
If you go by the above comparison, then it can be well said that a credit card is, of course, a better option than a debit card. You can opt for the Bajaj Finserv RBL Bank SuperCard for a majority of these features and more. The card comes with industry-first features and advantages. You can avail an option of withdrawal from ATMs without paying for any interest up to 50 days with this card. It comes with in-hand security and zero-fraud liability cover in case the card is involved in any fraudulent activity or theft. Last but not least, availing the card will get you the exciting option to have 20,000 reward points as a welcome gift.
Bajaj Finserv even provides pre-approved offers on credit cards as well as on home loans, personal loans, business loans and a host of financial products and services. These offers simplify the process of approval and disbursal of financing to save your time. You only need to submit a few important details to check your pre-approved offer.
So, the conclusion states that although a credit and a debit card is quite similar in appearance, there is a notable difference between credit card and debit card. You can maximize your reward benefits with a credit card and on the other hand the only advantage a debit card seems to provide is to exercise a sense of control over your savings. So, keep these pointers in mind as you apply for credit card, and you will be one to gain.
