Are Debit Cards Necessarily Better Than Credit Cards? Find Out

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The debate over the advantages of a credit card over debit card has long been going on among analysts. While some rate debit cards over credit cards, others are of the view that credit cards are better.

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While both the cards are lookalike and the acceptance at merchant outlets carry no difference, there is an intrinsic difference between the two.

A debit card uses one’s own funds available in one’s account while the credit card (as the name goes) uses the funds from the credit card company.

This fundamental difference leads to credit card score better over the debit card. Here’s what you should know.

Credit Card Usage Will Help You Make Money

This is one of the biggest advantages of owning a credit card. The cardholder is using the issuing company’s funds to purchase and to top it up, gets anywhere between 15 to 45 days of interest-free credit.

Many won’t be aware of it but credit card users get rewarded through various schemes and discount offers that the credit card companies extend to their customers.

From regular reward points that can be exchanged for a variety of merchandise, there are cards that offer frequent flyer benefits, discounts on a variety of expenses ranging from dining to movies and travel to the grocery.

This might encourage you to get one from your preferred bank.

Card Fee

Debit cards have a lower annual fee in comparison to credit cards.

However, a credit card user won’t be billed if he or she completes the threshold of certain expenses. This is not the case with debit cards. The fee on debit card rarely gets waived.

Restrictive Usage

Less than often, debit cards limit the usage to a particular amount in a day. It means that despite having a higher balance in the account, one may not be able to use it completely in one day if the need arises.

On the other hand, the credit card can be used up to the given limit. Restrictive usage makes it insignificant given the fact that the funds are owned by the individual.

Back Up In Case of Exigency

Credit cards come handy in case of an exigency. One can without applying for a loan has access to the funds up to the prescribed limit and can use it at any point in time.


A credit card fares better on safeguarding the cardholders’ interest in comparison to a debit card.

In the unfortunate event of theft and misuse of a credit card, the issuing companies give a protection that can cover the fraudulent usage for up to past 7 days from the time of reporting the loss.

Converting Spends Into EMI

A large ticket purchase can be converted into EMIs just by calling up the customer service number. The interest charged is far lower than the interest that one would be required to pay in case the credit was to be revolved.

These are just one of the many reasons one should consider before rejecting issuing a credit card in his or her name.

There is always the risk of purchasing too many products on your credit card but with a little discipline that can’t be easily avoided.

If one can pay the total amount due every month, then it makes far more sense to use credit cards.

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