Difference between debit cards and credit cards - Credit Card VS Debit Card

Difference between debit cards and credit cards - Credit Card VS Debit Card

First Debit card was issued in 1987 by Barclays a uk-based bank they enabled users to pay at different stores first credit card was issued in 1950 by diners club incorporated they were used to pay restaurant bills at first anyone having a bank account can avail a debit card with a simple one-time registration process.

But Credit card is offered only to those customers having minimum credit score as for their income using debit card you can only spend less than or equal to the money you have in your bank account while credit card enables you to spend even if you have less or no money in your bank account.

When you make purchase using debit card the amount is deducted direct from bank account instantly when you make purchase using credit card the amount is billed as outstanding balance which has to be paid in 30 days.

Generally Debit card users have control on the funds being spent it depends on the money saved in the account credit card users have a max limit for expenditure which is decided by the bank and not by the user spending using debit card incurs no interest towards payments you only have to pay a small service charge credit card.

Users are allowed a period of time to pay the credit card bill for that period interest is charged debit cards do not have any reward system for users no specific rewards that can be redeemed for more purchases credit card users often get reward points which they can redeem for extra discounts and new purchases that's all still have any doubts ask in comments below click the icon and subscribe now for more videos