Credit card or debit card: Which one should you use?
By Ankit Sharma
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Which one should you opt for?

If you do not want to be bothered by monthly bills then you should go for a debit card since it allows you to access your account directly, payments are made directly. There is no worry of settling the monthly bills.
In case you have a history of landing into debt, debit card is again recommended since transactions are directly debited from your account. The withdrawal limit would depend on the amount of funds in your account. A debit card transaction, at the most, can deplete your entire bank balance but it would not bog you into debt.

If you are a person with substantial bank balance, debit card is more appropriate for you since your credit line will be dependent on the funds in your account. On the other hand, if all your money is saved and you have very small bank balance, debit card is ruled out since you do not have enough funds that can be debited instantly from your account. In such a situation, credit card is a better option as it gives you the leeway of 20 to 50 days to make your payment after you use the card. However, if you want to use credit card to take quick loans, you have perhaps misunderstood the purpose of credit cards. People should not use credit card as a loan product since it is an expensive loan option.

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.

Therefore it is important to be careful while using the card. In the event of theft or unauthorized use, ensure that you understand the policy.

There is a plethora of cards-both credit and debit-with various lenders. While some feel that credit card is a better option since they do not have to worry about cash around, for others it is still an ethical dilemma to use money that does not belong to them. However, you should see for yourself as to which card suits you better.


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Glenn (Posted: Jun 8, 2016)
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