Credit card or debit card: Which is better?


Credit card or debit card: Which is better?
Bangalore: Do you carry cash in your pocket for shopping, or dependent on credit or debit cards? If you are habituated to the "plastic money', it's necessary for you to know that which is better - credit cards or debit cards? While both seem to look similar, they are quite different in the way they work and the services they offer. If you do the shopping through credit card, it enables you to borrow money while making purchases. The borrowed amount is not directly debited from your account at the time of purchase. You will be getting the bill every month for the sum total of your purchases. You have an option to pay your bill either in full or in part. Paying part will attract an interest on the balance. And if you do the purchasing through debit card, it ensures that you do not spend beyond your means. As soon as you swipe the card, it gets reflected in your bank account. The term 'plastic money' is more relevant in case of debit cards since the risk of carrying a debit card is same as that of cash. Both the cards have their advantages, but in the last one year, there is a slump in credit card market. Indian credit card industry was growing at an annual rate of 25 percent to 30 percent but in the wake of the crisis, credit card transactions declined giving rise to debit card usage that is considered safer and requires no credit to be extended to the user. So, unlike to say with assurance that you should use credit or debit cards. We can suggest you that if you want to keep yourself free of monthly bills then you should go for a debit card since it allows you to access your account directly, payments are made directly. Also, if you do not have a job or have a low salary, go for a debit card. A credit card is safer than a debit card because a debit card is directly linked to your account. An unauthorized user may be able to clean out your account very quickly. If you can manage your expenses, then owning a credit card is better as it gives you an option to pay after 20 to 50 days without any extra charges and is safe as its mis-use can be tackled a lot better than that of a debit card.