In this runaway world, people have very little time, so the world is becoming digital, in which the payment services are also trying to make itself digital. People now prefer to use internet banking, digital wallet, credit-card, debit card, rather than paying in cash
A credit-card is issued by a financial institution that lends you money to make purchases.
A credit-card is a short-term loan provided by a credit card Issuer….
Credit-cards allow you to borrow money up to a specified limit, which has to be repaid. If you do not pay your entire statement balance, you will be charged interest, and you will often be penalized for late payments. Positive payment activity can help build your credit score.
A debit card is a plastic payment card that provides the facility of payment instead of cash after an item is purchased. Debit cards require users to pay immediately, as the card uses money directly from your savings account for purchases or ATM withdrawals.
Advantage of credit-card and debit card-
If you have a credit-card or debit card, then you do not need to visit the bank to make any payment. You can pay online or through POS machine with the help of mobile payment app.
Mainly Debit card used to withdraw from Atm Machine
Disadvantage of credit-card and debit card
There are some disadvantages of credit-cards and debit cards. Nowadays people prefer to make digital payments, so it is very easy for hackers to hack accounts.
For example, to know the details of credit-card or debit card by sending a suspicious email, to know the details of credit-card or debit card by creating a clone website of the credit provider’s website.
Let’s take a look at the difference between a credit-card and a debit card. Which will give us a chance to know a little more about credit cards and debit cards.
|Credit card||Debit card|
|1. Credit card is not linked with your bank account||1. Debit card linked with your bank account|
|2. A credit card has to applied separately||2. You got a debit card while opening a bank account|
|3. It is impossible to issue a credit card on zero balance.||3. Debit card also issued on zero balance.|
|4. Credit card are not debt instrument||4. Debit card are not debt instrument|
|5. Credit card users only spend only spend what is credit limit is given by financial institutions.||5. Debit card can only spend spend what the money available his or her bank account.|
|6. Credt card users to pay at credit card expenses at a specified time.||6. Any type of bill in debit card is not generated.|
|7. Your credit history will be affected by credit card.||7. Your credit history history will be unaffected by debit card.|
|8. Charge is levied on withdrawing money from atm by credit card||8. No charge is applied on withdrawing money from ATM by debit card.|
|9. Very attractive rewards program is available on credit card||9. Only some Debit card have rewards facility.|
|10. Credit card is issued only after looking at your salary, transactions business capicity||10. Approval of debit card is easier and faster.|
|11. Credt card help build a credit history.||11. Debit card does’n help build a credit history.|
|12. If the bill is not paid at the given time by credit card issuer you may have to pay a heavy interest on your expenses.||12. No need to pay interest on purchase|
|13. It is necessary to have a PIN or OTP to complete the transactions||13. It is necessary to have a PIN or OTP to complete the transactions|
If you want to know how to avoid fraud of internet banking, then you can click on the link given below. https://www.capitalcred.in/2020/06/26/internet-banking/
You can use the link given below to apply for a credit-card.
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