What is a Credit Card?
Credit Cards are a type of modern plastic money. They come with a concept of buy now, pay later. Banks give these cards to the customers with specific eligibility and documentation to use for various personal reasons. By using these cards customers can pay for goods on credited amount by banks. In simple words, bank gives specific amount as credit or loan to the card holders to use for their utility. Customers can use this credit amount for their needs and pay back the borrowed amount to the banks before the next scheduled billing in lump sum or as EMIs. Customers have to pay a specific interest rate on borrowed amount. They are also given a specific limit of amount in which they have to limit their use. You can use a credit card around the world. Banks offer different types of credit cards for different purposes. It’s always a feasible option to carry a credit card instead of carrying a roll of cash. Many prefer credit card over debit card as it allows using the card on credit.
What are the Differences between Credit Card and Debit Card?
Debit Card
Credit Cards - You can use the money or funds which are deposited in your account

Use of the Funds - You can use a debit card only if you have money or funds in your account

Effect on Credit Score - Debit card usage does not impact your credit score


Increase in Card Usage Limit - As the funds you use are deposited by you in the account, there is not fund usage limit

Earning Rewards - You can earn reward points for using your debit card and the points can be redeemed to enjoy various discounts

Online Transaction - Debit card is not a secured way to transact online as funds or money are immediately debited from account after transaction and if you cancel the transaction, reversal time is of minimum a week
Credit Card
Credit Cards - You can use the money or funds offered by bank as credit

Use of the Funds - You can use a credit card even if you don’t have money or funds in your account

Effect on Credit Score - If you pay your credit card bills regularly and on time, this can prove as a good credit score for future financial needs

Increase in Card Usage Limit - Your credit limit on the cards will change according to your usage

Earning Rewards - Credit card offers you a large structure of reward points, discounts, cash back etc.

Online Transaction - Credit cards are safe to use online as the funds or money do not deduct from your account immediately and you can file a report if any wrong transactions are done and won’t get charged for it
What are the different types of Credit Cards?
Balance Transfer Credit Card
Prepaid Credit Card
Business Credit Card
Specialty Credit Card
Premium Women Credit Card
Premium Credit Card
Co-Brand Credit Card
Super Premium Credit Card
Commercial Credit Card
Cash Back Credit Card
Standard Credit Card
Rewards Credit Card
Prepaid Credit Card
Add On Credit Card
Premium Travel Credit Card
Limited Purpose Credit Card
Charge Credit Card
Subprime Credit Card