Debit card :- A card from which the cardholder, can directly withdraw the amount from the bank account, via ATM, Automatic teller machine, or can do Internet shopping, or can swipe and purchase during outdoor shopping too. Gift voucher cards are also in existence. Debit cards plays a vital role in the day-to-day life.
Debit card requires the sufficient balance in our bank account. It can be helpful up to the money we have in the account. Instead of carrying cash, we can carry debit card, for the safety purpose. And, for unexpected expenses, we can use it. Nowadays, all the shops have the option of debit card swiping machines. It works on the existing funds of your account.
Credit card, is the one which makes the people more convenient, it is actually the banks are giving loans to the customer, in the shape of a card. And in return, you promise the bank to pay the money monthly, with interest. The funds are given in the card. The credit limit has been fixed according to the person’s income and the eligibility.
If we compare the debit and the credit cards, both has its own positive and negative sides.
Debit cards , can be used only with the money we have in the account, whereas the credit card, has more risks. We can how much ever we want and bank will keep a knife on your neck, if we can’t pay the credit card bill, over a period of time. We can see people suffering from the credit card due payment. The month on minimum due, is the real pain for a normal middle class, which lies great interest .
For eg, if we swipe for Rs. 25000, simply without paying the principal, the bank will levy the interest charges alone, in the name of the minimum due.
In the usage wise, the credit card involves less risk. Nobody can use that apart from the owner, its very much secured. Whereas the debit card can be swiped in all the places, without even the pin number. But, recently in India, they have started scrutinizing it. Only with the pin number we can use it.
Credit affects your credit history and reliability. Based on the credit card performance only, we can go for any kind of loans, car loans, home loans. People suffered as they have write off the credit card, and can’t apply any loans. They will get rejected initially. If they didn’t pay the minimum due on time, it will be calculates as DPD – days passed due , which will affects your credit history more.
Debit card don’t have such issues, because we are using it out of our own money, as if from our pocket.
The legal liability are more for the credit card usage, whereas for the debit card is low.
But, on the whole, these two cards has changed our lifestyle, a lot. It is like a magic card, they are the one which slowly come into our country, which slowly grabs the people. Everybody has become slaves to the cards. And all kinds of loans started from that.
The salary is being credited to everyone. The expenses we can’t be control, because of these cards.
Just go back before few years, Our father will bring the salary in the brown cover sealed. Will give it to his mother or wife. They will spend it accordingly. No debts, nothing. But lived happily. ..