On daily basis we use credit and debit cards to make payments, shopping withdrawal of money. The main feature of these cards is to access money and make payments when needed.
Let us understand the basic difference between debit and credit cards.
An amount used from your debit card is the money which you own. When you use you debit card at ATM or at POS the money used from your account to which your debit card is linked. It means you can spend the money which is available in your account.
Interest rates are not charged on the money used since it is your own money which gets deducted from your card. Every month you receive a statement for all transactions you have made.
An amount used from from credit card is in the form of loan or debt which needs to be paid to the bank within a stipulated time. In case of delay in payment on due date, huge interest rates are levied.
Credit cards are not linked to your account. You can independently get credit card irrespective of whether you have account or not.
Every month you receive s statement which mentions your billing payment and due date.
When to use?
It is better to use debit card whenever possible as it helps you manage your finances better. If you are spending through credit card, you will not realise untill you make payments.
Well, if you are genuine and calculative spender, credit card should not be a problem. One can utilize maximum benefits and discounts offered on credit cards.
Both have their pros and cons, it is upto you how you make most of it.