What’s the difference between debit cards and credit cards?

debit cards

These days, people prefer not to carry cash in their wallets. Instead, they carry plastic cards that serve the purpose equally well. These are either credit cards or debit cards. But there are some considerable differences between the two.

How to avail credit cards

You can avail a credit card if you fulfil certain criteria. There are two ways you can apply for a credit card  – (i) online and (ii) fill up an application form from the lending institution.

There are general rules for availing credit cards. You have to attain 18 years of age (or in some cases, 21 years) to apply for credit cards. You also need a good credit score which will reflect your credit history. A high score will ensure lenders about your efficient creditworthiness and your intention to repay. If you apply for a credit card for the first time, there might be some difficulties. Lenders may reject such applications owing to zero credit records from the past.

Financial institutions offering credit cards may ask for income documents as well. You can either be a salaried-professional or a self-employed professional, but you need to have a regular flow of income.

To avail the credit card, you must furnish your KYC details, passport-sized photograph and address proof.

Benefits of using credit cards

The benefits you get from credit cards are innumerable. You can buy any product using your credit card and repay the amount after a specified term. Interest is levied on the outstanding amount only in case of late payments.

One significant advantage of credit cards is the reward points and discounts that come with them. You can avail different credit cards depending on your lifestyle and choices. You can go for cards that give discounts on movie tickets, rewards on online purchases, cashback on travel bookings, etc. as per your needs. Credit cards also allow users to convert purchases into easy EMIs and ensure timely repayments of outstanding amounts.

The Bajaj Finserv RBL Bank SuperCard also allows interest-free cash withdrawals from ATMs. Here, you only pay the processing fee. You can even get interest-free personal loans on your available credit limit for 90 days, once every year.

Availing a suitable credit card is thus a smart choice!

What are debit cards and how are they different?

Debit cards are a tad different from credit cards. Banks issue debit cards against your current or savings accounts. You can spend only the amount available in your accounts. Unlike credit cards, you can generally never purchase anything on EMI using a debit card.

When you purchase anything using a debit card, you don’t have to repay anything later, since you’re purchasing using your own money. You can even withdraw cash using it without paying any extra fee for the service to the bank. The amount you withdraw will be directly deducted from your own account.

Limitations concerning a debit card

There are certain limitations to a debit card. Reward points or cash backs for purchases made via debit cards are comparatively lesser than credit cards. There are no tailor-made cards as per your requirements, like a travel card or an entertainment card. Also, in case of emergencies, one cannot spend more than the available account balance.

You can easily avoid all these problems with the Bajaj Finserv RBL Bank SuperCard that gives you extra benefits like reward points, free movie tickets and many such exciting offers. Bajaj Finserv also provides pre-approved offers on credit cards, home loans, personal loans, business loans and more. They make the procedure to avail finances simple and less time-consuming. You can check out your pre-approved offers by putting in some necessary personal details.


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