Difference between credit card and debit card

• Difference between credit card and debit card

   A credit card allows you to borrow money to money to pay for things. There will be a limit to how much you can borrow. Now days credit cards are of great convenience. Credit card is a kind of plastic card. 

   Debit card usually allow instant withdrawal of cash, acting as an ATM card for this purpose. A debit card is a plastic payment card that can be used instead of cash when making purchase. 

   Credit card : First credit card was issued in 1950 by Diner's club Inc. They were used to pay restaurant bills at first. Credit card is offered only to those customers having minimum credit score as per their income. While credit card enable you to spend even if you have less or no money in your bank account. When you make purchases using credit card the amount is billed as outstanding balance which has to be paid in 30 days generally. Credit card user have a limit for expenditure which is decided by the bank and not by the user.  Credit card users are allowed a period to time to pay the credit card bill. Credit card users often get reward point which they can redeem for extra discount or new purchase. In emergency situation you can get loan from bank through this card. And your money is deducted from your bank account. Online payment is possible through this card but you can't withdraw money from ATM using this card and if  you can't return that amount in right time then bank will charged interest, you have to pay interest also with that amount. 

   Debit card : Debit card was issued in 1987 by Barclays a UK based bank. They enabled users to pay at different stores. Anyone having a bank account can avail a debit card with a simple one time registration process using debit card you can only spend less than or equal to the money you have in your bank account. While you make purchases using debit card, the amount is deducted direct from bank account instantly. Debit card users have control on the funds being spend. It depend on the money saved in the account. Spending using debit card incurs no interest towards payment. You only have to pay a small service charge. Debit card do not have any reward system for users. You can withdraw money from ATM through debit card and also online payment is possible. From this card payment is also possible through swipe machine. The big difference between credit card and debit card is that you are using your money instead of borrowing from the bank.