Comparison Guide

Credit Card vs Debit Card

Comprehensive comparison to help you choose the right payment method

Key Differences at a Glance

AspectCredit CardDebit Card
Source of FundsBorrowed money from bankYour own money
Interest ChargesYes, if balance not paidNo interest charges
Rewards/CashbackYes, 1-5% cashbackLimited or none
Credit ScoreImproves with timely paymentsNo impact on credit score
EMI FacilityAvailable for large purchasesTypically not available
Grace Period20-50 days interest-freeNo grace period
Fraud LiabilityLimited liability (₹0-500)Higher liability
TravelingBetter for international travelLimited acceptance abroad

Advantages of Credit Cards

Earn Rewards & Cashback

Get 1-5% cashback on every purchase, which adds up significantly over time

Build Credit History

Regular credit card usage improves your CIBIL score, helping you get better loans in future

Grace Period

Enjoy 20-50 days interest-free period for bill payment

EMI Facility

Convert large purchases into 0% EMI for up to 24 months

Fraud Protection

Limited liability (₹0-500) if card is misused or stolen

Travel Benefits

Better international acceptance, travel insurance, lounge access

Advantages of Debit Cards

Spend Only What You Have

No risk of overspending or going into debt

No Interest Charges

Zero interest charges unlike credit cards

Easy Account Management

Direct access to your bank account and ATM withdrawals

Lower Eligibility Criteria

No income requirements, easier to get

Automatic Expense Tracking

All transactions directly visible in your bank account

No Monthly Billing Cycle

Money is deducted immediately, no bill management needed

Which Should You Use?

Use Credit Card When:

  • Making big purchases
  • Booking flights/hotels
  • Building credit history
  • You can pay full balance
  • Need fraud protection
  • Want rewards/cashback

Use Debit Card When:

  • Managing daily expenses
  • ATM cash withdrawals
  • Want no debt risk
  • Limited income control
  • Online shopping safely
  • Avoid overspending

Ready for Your First Credit Card?

Compare top credit cards and apply with instant approval

Apply for Credit Card