Credit and Debit cards are nothing but plastic money. They help you to travel, shop, dine in, and do another spending even when you don’t have the currency in your pocket.
With the world going digital most of us fancy pulling out a card from our pockets on the payment counter, isn’t it? Debit and credit cards are very useful as well as convenient as they give you relief from carrying heavy wallets and the stress of carrying a Chequebook everywhere.
Credit Card or Debit Card
Before we look for the answer to this question, “Credit Card or Debit Card, which one is better”? We are going to thoroughly look into the merits and demerits of both the cards.
This will give us a good insight into both the cards and make it easier for you to decide.
1. Merits of a Debit Card
The debit cards are bi-functional and can be used in two different ways:
- Firstly you can use it like an ATM card to withdraw cash from the machine instantly.
- Secondly, you can use it directly to buy an item. This money is directly deducted from your bank account associated with the card but still, it gives you the liberty of roaming cashless.
- The best part of what I like about the debit card is, you don’t have to fill out a separate form or wait for approval. It comes with a kit bag when you open a bank account. Hence it is easy to obtain.
- Whenever you are on the go you can use the debit card in several shopping complexes, retail shops, and restaurants. They are widely accepted and convenient to use.
2. Demerits of Debit Card
Like a coin has two faces, everything has its positive side as well as its negative side. Here are a few demerits of a debit card:
- If you are using a debit card, there will be no grace period that will be provided to you and the money will be deducted instantly from your bank account which is associated with the card.
- One of the biggest problems of having a debit card is the balance. If you do not keep updating your passbook now and then, you might find a lot of difficulties in keeping a check and maintaining the balance in your account.
- The debit card holders are more prone to frauds. Although the banks and institutions are working hard to protect their debit card users still the risk of losing money for a debit card holder is much more on cards as compared to that of a credit card user.
- Although it might not be a demerit still I find it to be one. If you are using a debit card in an ATM that is not affiliated with your bank, you might have to give up a small fee for that transaction.
3. Merit of Credit Card
Credit cards are really handy and they have a lot of perks that are enjoyed by the users. You can get gift vouchers, joining rewards, points, offers, and much more.
Listed below are a few points that could sway you to get a credit card for yourself:
- It is one form of cash but safer when used. Even if you lose a credit card somewhere, you can quickly block it by calling the helpline number of the credit card issuer. “Now don’t tell me you are going to lose your phone the same day.”
- Using a credit card can help you build your credit report and enhance your credit rating as well.
- If you are one of those who pay their bills on time, you can enjoy the interest-free days. But then, you can enjoy this only when you pay your bills on time before the statement period ends.
- The best perk of having a credit card according to me is earning points. Whenever you spend a specific amount using your card, you are rewarded with bonus points. These bonus points have a lot of value. Either you can turn it into cash or utilize it to get some gifts. There are many stores and online portals where you can use these points to get exciting gifts.
- Sometimes, if you are unhappy with the credit card service, like if it gets declined or something, you can request a chargeback from the bank and they will have to give it to you.
- The credit cards give you many complimentary extra benefits like insurance, travel benefits, dining benefits, entertainment tickets, and much more.
- Whenever you use a credit card to pay a bill, the amount is not deducted from your bank at that moment. You are given a fixed number of days to repay the amount. The credit card issuing companies give you a window of a few days.
- Moreover, you can pay other debts and cash out the remaining amount on your card if needed as you will have to pay the bill at the end.
- The online payments done by credit cards are secured and there are negligible changes wherein you can lose anything. It is completely secured by the bank on the online portals.
- There is no tension or stress in keeping a check on the balance and transactions done by the credit card as the bank keeps sending the credit card account statement to the cardholder at his address.
4. The Demerit of Credit Card
- The surcharges are higher on the credit cards as compared to that on the debit cards.
- One has to pay the annual fees following the card that they hold.
- If you fail to give the dues back on time, you could fall into paying extra.
Looking into the demerits and merits chart of the debit and credit cards we can say that Credit cards are way better. You can pay to the limit of your card and nothing will be deducted from your account.
Isn’t that great? Therefore with all the analysis, we can say that credit cards are better than debit cards.
