Reason to Know Why Credit Cards are Better than Debit Cards?

As per a recent report, approximately 10.3 million credit cards were introduced in the financial year 2018 – 2019. The same report shows Indian market lost around 107.4 million debit cards during the same duration. This change in preference of cards in Indian financial market is observed because of several reasons as follows –

1. The security offered with credit cards is higher than that of debit cards. 
2. Credit cards help consumers spend with more flexibility. 
3. Leading lenders provide several beneficial offers that can save you money.
4. Internationally accepted at all places without any issues. 

The major difference between a credit card and debit card is on its way of usage. When you are making purchases or spends through a credit card, then the credit card lender is paying on your behalf at the time, which you need to pay back at the end of the billing period.

A credit card also comes handy when an individual requires emergency funds be it for online spends or cash withdrawals. Whereas, using debit cards you can only withdraw or spend the money you have in your bank account. 

Benefits of credit cards that a debit card doesn’t have –

• Fraud Protection 

Credit cards come with robust security features that prevent individuals from cybercrime threats and provide fraud protection. In case of a fraudulent transaction, a consumer can raise a complaint to the concerned lender, and they won’t have to make payments for any such transactions. Theft of credit card, swiping at unverified vendors are a few types of credit card fraud which you can avoid by raising complaint against it. 

• Cashbacks and rewards 

Credit cards bring several loyalty programs to customers which isn’t available in debit cards. Consumers can earn such reward points with the purchases they make over time and redeem them later to earn cashbacks or buy a voucher. Bajaj Finserv RBL Bank SuperCard is one such card that let users enjoy rewards worth up to Rs. 55, 000 along with added benefits. 

• Impact on credit score 

Another difference between credit card and debit card is that debit cards do not have any impact over an individual’s credit score. Paying credit card bills on time, making full payments, availing loans and repaying on time is how you can use a credit card to improve your credit score. 

• Security in case of mishaps in purchases 

There can be times when a purchase or payment of product/service is wronged and needs to be cancelled or revoked. You can raise a complaint against the seller and report the same to your credit card online lender. This way you won’t have to pay bills for such purchases as it is then the lenders’ concern to deal with the seller.   

• Emergency cash withdrawals and loans 

Unlike debit cards where you have to consider the available funds in your bank account before spending, acquiring credit card online can help you get emergency funds. For all such situations, consumers can withdraw funds using their credit card or acquire an emergency loan against their credit card. Few leading lenders can let you withdraw interest-free cash (for up to 50 days) from ATMs. 

Non-banking financial companies like Bajaj Finserv aid consumers in availing such loans with their pre-approved offer facility. These offers apply to several financial products such as home loans, personal loans, and business loans, along with others. Check your pre-approved offer as you submit essential details like your name and contact number.

Above reasons are few major benefits a user can avail using credit cards which aren’t available with debit cards. The difference between credit card and debit card instruct users about how they can acquire maximum benefits out of a particular card.