In today’s technological world, people are using more cards and wallets in their day-to-day life. Even children are aware of using cards; but they don’t know the difference between a Debit Card and Credit Card.It is the duty of the parents to explain the features, Pros and Cons of the cards.
As today’s children are Leaders of tomorrow, they have to know the difference between debit and credit card. This would be also applicable to young earners also otherwise they would fall in “Debt-Trap”.
Let us differentiate the features, advantages and disadvantages of debit and credit cards in detail-
|Debit Card||Credit Card|
|1.These are provided to all bank a/c holders(Literates)irrespective of their income||1.These are provided to those who have good income source and good credit history|
|2.These are used to withdraw cash as per the balance available in your Bank a/c||2.These are used to swipe/withdraw cash as per the credit limit issued by the banks|
|3.There is no interest payable, as you may withdraw only from the available balance||3.You have to pay “interest” on the card usage.It should be paid before due date|
|4.There are no charges on withdrawing cash using Debit Card||4.You will be levied heavy charges on withdrawing cash|
|5.The only disadvantage with debit card is there will be charges on cash withdrawal beyond free transactions limit at ATM Terminals||5.You can withdraw as many times but you will be levied higher interest on cash withdrawals|
|6.It is used to live-in within your means(Without spending beyond the available balance)||6.It makes you to live in “‘Credit” as you have to pay the interest on or before the due date|
This all are the features, drawbacks of debit and credit cards. Each one has its own advantages and disadvantages.
If you have limited income and want to live-in within your means opt for “Debit Card”
If you have a good source of income and have the capacity to repay the due amount on-time, opt for “Credit Cards”
Opt for either of the two based on your requirements. Generally “Debit Cards” are given to “All” While “Credit Cards” are given to those who have good credit history and high-income earners.