Differences Between Credit And Debit Cards You Should Know

Banks and non-banking financial companies offer a wide array of benefits to their customers. To make the financial journey easier and more comfortable, these financial groups launched their financial tools. For example, credit cards and debit cards are the two most important financial tools you should consider with an online payment app

With endless positive benefits and cutting-edge features, these cards help people solve several financial problems with the use of UPI. Some of those are withdrawal of cash, cash deposits, balance checking, etc. Besides, these cards are helpful in promoting the digital banking system with their cashless features. These days, you can even try various money-sending apps. 

Simply add your credit or debit cards to the mobile app and use those apps to pay any merchant or contact instantly. You can even pay credit card bills instantly within the due time frame. The overall process is no doubt bringing upscaling services in the financial sector in India and other countries. 

As credit and debit cards are such influential financial tools, you should know about these two. Find all the details related to these online upi payment apps in the below-mentioned areas. 

What is a credit card?

Credit cards are simply a tool for borrowing money to fulfill any financial needs. It can be borrowing money from a bank or any other online lending app. Credit cards enable you to borrow a small to large amount of money. Though it has a predefined upper limit of usage, you can use that beyond the limit. However, it is not always recommended.

To fund anything in case of emergency,  you can get the money from the lender or the credit card issuing authority. It is the best way to avoid the hassle of carrying cash everywhere. 

The card issuing authority will check your credit card score to find the best personalized credit card features. So, it is a mandatory factor you have to consider. Make sure to increase your credit score so that you can enjoy better facilities on the card. 

Benefits of a credit card

There are a lot of benefits to having a credit card. For example,

  • Enjoy shopping without carrying cash with you everywhere. Pay bills to any merchant anywhere with a credit card. 
  • Pay all EMIs or monthly bills with a credit card. 
  • Whenever needed, withdraw cash too.
  • Even if you are traveling to any foreign country, you can make use of a credit card because of its universal acceptance. 

Debit card: what is it?

Debit cards are also beneficial tools offered by banks and NBFCs. You can add your savings account with a debit card to spend the savings account’s money directly. With the help of your debit card, you can directly deposit or withdraw money from ATMs. You can also send money to anyone digitally or pay any merchant through online payment gateways. Debit cards come with high-end safety measures. For example, you need to put a 4-digit PIN to use any facility of the debit card. 

Benefits of a debit card

Debit cards also come with a bunch of benefits. For example, 

  • When you open your savings account, you can get a debit card upon request. 
  • You can swipe your debit card at any cash counter to pay the merchant. 
  • Debit cards do not define any credit limit or usage limit. When you use a debit card, you know how much money you have in your bank account. 
  • Debit cards offer ultimate safety on your usage always. 

Bottom line:

Debit and credit cards are both beneficial in various ways. With their online payment capabilities, these two credit cards offer the best entry point into the world of digital payments. Additionally, due to their high level of security measures, there is no such fear of theft or hacking. In order to improve usage, you can now also connect your debit and credit cards to a variety of bill payment apps. Utilize these cards to their full potential for smooth payments along with the UPI app