Key Differences Between Credit Card and Debit Card

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There is no denying on the fact that credit cards and debit cards may look alike, but there is a lot of difference between both the cards. However, on one thing many of you will surely agree is the fact that until and unless you don’t know the basic difference between these two cards, you won’t be able to use your card to the fullest.

Many people still don’t differentiate between these cards, hence won’t be able to use their credit cards properly.  In order to use your card at its fullest, it’s important for you to know what features and, basically it stands for? Once you are aware about the ins and outs of these two cards, it becomes easy for you to use them effectively.

So, if you are still getting confused regarding the basic difference between both types of cards, nothing to worry.

Yes, clear all your doubts as this article shares with you the key differences between credit card and debit card.

DifferenceCredit CardDebit Card
Source of FundsBorrow money from bank or financial institutionMoney you have in your account
Line of CreditA line of creditNo credit
InterestIf payments are not made within due dateNo interest is applicable
LimitDepends on the credit limit which can be increased/decreased by bankDepends on the money in your account
Connected ToNo need to connect to any bank accountConnected to savings or current account
FeesDepending on the card typeDepending on the card type
Bills/StatementsStatements are generated on monthly basisStatements are generated on monthly basis
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(Updated on:21st October,2016)