Difference Between Credit Card and Debit Card

If one has a credit card, then the accurate amount he or she is capable of spending will rely upon the current credit limit and the balance his or her card has.

After one reaches the credit limit, the person will not be able to use that card for any further purchase. But after paying off at least a part of the amount the person will be able to use the card again.

Credit Card vs Debit Card

The main difference between a credit card and a debit card is that if a person is using and spending with his or her credit card, it means the person is taking a loan and he or she has to pay the interest in case of carrying the amount. On the other hand, if one is a debit cardholder, then the card is connected to the bank account.

Credit Card vs Debit Card

In the case of a debit card, as it is linked to the bank account, the funds will be pulled straight from the balance he or she has. After a transaction is being done one can withdraw the money right away by using a PIN.

Comparison Table Between Credit Card and Debit Card

Parameter of ComparisonCredit CardDebit Card
DefinitionWith a credit card, one can take a loan to make purchases and can pay back later.With a debit card, one’s money will get deducted to make purchases directly from his or her bank account.
PaymentThe credit card company will pay for the purchase and the cardholder has to pay the company.The cardholder has to pay for the purchase.
Source of BalanceThe card company is supposed to give the balance to the credit card and it will let the cardholder pay for any purchase. Meaning the credit card company is the source of the balance.The bank account linked to the debit card is the source of the balance.
InterestOne has to pay back the exact amount by its due date, otherwise, interest will be charged.No interest is going to be charged.
LimitThere is a pre-set card limit, until that the card can be used.There is no actual limit as the current bank account balance will let a cardholder use the money.

What is a Credit Card?

A credit card is known to be the medium of borrowing funds to use for any sort of purchase or investment. This card is supposed to have spending limits.

The limit can be a high-spending one or a low-spending one which depends on the cardholder’s creditworthiness. If a credit cardholder uses his or her card, the transaction amount will be added to the cardholder’s outstanding balance.

According to many credit card companies these days, a cardholder gets thirty days limit before any interests are going to be charged on the balance. No amount of interest will be charged if one does not pay back by the due time which is a month.

If it is over a month, then after every purchase, interest will be charged. The credit card balance and the history of each payment are capable of affecting the cardholder’s interest rates.

There are liable credit cardholders who are capable of earning points and rewards from card companies. And it happens when they use their card in a positive and genuine way.

This also helps the cardholders to gain a solid credit score.

credit card

What is Debit Card?

If a person wants to have immediate access to a fund without the hassle of writing a check to withdraw balance then the person can use a debit card as it is linked to one’s personal bank account. Yes, a debit card and a credit card may look alike but they work differently and they serve different purposes.

A debit card can be used anywhere. Wherever credit cards are applicable, a debit card can also be used there as it is linked to one’s bank account. A debit card with the Visa logo will be accepted anywhere that accepts Visa cards.

The bank has the authority to put on a hold on a debit card, based on the amount of the cardholder has spent. The transaction of the money can happen right away or it might take 24 hours or more which depends on the amount of the purchase and the bank.

To use the debit card, the cardholder will get a personal identification number (PIN). This PIN number will come handy when the cardholder will need to withdraw money.

debit card

Main Differences Between Credit Card and Debit Card

  1. It is not necessary to open a bank account in order to access a credit card. On the other hand, one needs to open an account to get access to a debit card as it is connected to the bank account.
  2. If one uses a credit card then the card company will pay the amount at that moment without any delay and it is quite the same as to someone who has given a loan to a user. And in the matter of the transaction of a debit card, the money will be taken from the present fund of the savings account of the cardholder.
  3. While using a credit card if any sort of delay happens in the matter of paying back the amount then the cardholder might need to pay interest. On the other hand, while using a debit card no amount of interest will have to pay by the cardholder.
  4. A credit cardholder will receive a monthly statement for the transaction amount that has been used and is given by the credit card company. In the matter of debit card, no monthly statement will be provided.
  5. A credit cardholder will have a credit period of the particular amount that has been lent to the user. And for a debit cardholder, there is no credit period, as the amount will be deducted immediately from the bank account.
Difference Between Credit Card and Debit Card


Sometime people may think that a credit card will allow the possibility to spend more than one should, in that case, a debit card is a better pick.

In other circumstances, if one is used to spending within a budget and is capable of paying the due on time every month then he is eligible and allowed to own a credit card.

If a cardholder knows and understands properly about what kind of service he wants then it will be quite easy for him to pick the right kind of card for him.

Key Differences Between Credit Card and Debit Card (PDF Format)

Download the key differences in .PDF format, to read or print them later:

Difference Between Credit Card and Debit Card


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Vraj Anandpara
Vraj Anandpara

I only have debit card which my ATM card given by the bank when I opened my savings account. How can I get credit card?

Piyush Yadav
Piyush Yadav
Reply to  Vraj Anandpara

Hi Vraj,

For that you will have to improve your credit score and also add a fixed deposit with bank. This FD then acts as a guarantee on which the banks will issue a credit card to you.

John Ebeling
John Ebeling

All these online payment gateways, do they accept both credit and debit cards?
I am asking because I am in the middle of a transaction and my card is getting declined

Piyush Yadav
Piyush Yadav
Reply to  John Ebeling

No, not all cards will work with all payment gateways.
What I have seen is that the VISA credit card works everywhere (provided you have enabled international transactions)


In my country, if you want to get a credit card, you have to deposit some money with the bank as security. The bank does give some interest on the deposited money but that is a part of regulation by the central bank.