Credit Cards vs. Debit Cards: Which is Safer?

Credit card vs. Debit card

Credit Cards vs. debit cards are separate pillars. Debit cards provide quick access to your bank a/c money, letting you make purchases without getting into debt. Credit cards, on the other hand, offer a line of credit, allowing users to borrow cash up to a predefined amount with the need to return. In this article, let’s understand the primary difference between credit cards vs. debit cards, their pro and cons, and how they both have different benefits.

Credit Cards vs. Debit Cards: Which is Safer?

What is a Credit Card?

Credit cards are financial tools that help cardholders borrow funds from a card issuer, up to a limited credit. Similar to debit cards, they are directly linked to a bank account and have a credit limit through which cardholders can use it for purchases.

What is a Debit Card?

On the other hand, a debit card is linked to the cardholder’s bank account. When you use your debit card, the amount is directly deducted from your bank account. Mainly, a debit card allows you to spend the money which you have in your bank account without borrowing from others.

Difference Between Credit Cards vs. Debit Cards

Cashback Rewards

Cardholders who have a good credit score can get rewards with credit cards that will offer advantages like reward points, cashback, dining benefits, and airline miles, which can also be redeemed for gift cards or vouchers.

Credit cards also come with travel benefits such as complimentary international and domestic lounge access, fuel benefits, reward redemption benefits, and daily spending benefits.

Joining and Renewal Fees

Credit cards come with joining and renewal fees, especially rewards, cashback, shopping, and travel cards. There are lifetime free credit cards as well, which do not have joining or annual fees.

However, debit cards don’t have any annual or joining fees. You only have to pay maintenance or ATM fees if you are using an ATM for transactions that are not a part of the bank network.

Debit cards make it easier to access the cash you have, generally at no extra cost if you use an ATM at your bank. Cash advances made using a credit card usually come with a substantial charge and begin charging interest immediately rather than when the amount is due.

Advantages and Disadvantages of Credit & Debit Cards

Advantages of Credit Cards

  • You can go shopping without even having cash.
  • Get reward points, cashback, and air miles while using a credit card.
  • Get extra benefits of fuel waivers and complimentary lounge access.
  • Enjoy extra offers and deals on dining, shopping, and other shopping experiences.
  • Purchase products and services on credit.

Disadvantages of Credit Cards

  • You can get into a debt trap if you are not able to pay bills on time.
  • You might get extra charges like annual fees, late fees, and interest on outstanding payments.

Advantages of Debit Cards

  • Comfortable and secure way to withdraw cash.
  • You can go shopping without even having cash.
  • Never get into a debt trap.

Disadvantages of Debit Cards

  • You cannot purchase things on credit.
  • Need to pay extra fees when withdrawing cash from different ATMs.
  • You will get only a few rewards programs or exclusive deals.
  • Does not required to build a credit history.

Also Read: How to Use Credit Cards Responsibly?


Your financial condition and habits influence the decision between credit cards vs. debit cards. Do you need to pay off your credit card debt and stay within your budget? A debit card is your best option, but there are credit cards that are lifetime-free and help you stay within your budget. It can help you develop or enhance your credit score by allowing you to spend money and pay them off. Your decisions and goals will help you to decide which option is best for you.

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