Debit Card vs Credit Card: Which is better for frequent use?

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Should you use your credit card or debit card more frequently to make a payment? On the surface, this seems a frivolous question. However, the decision you take has some financial repercussions which you must understand.

Both credit and debit cards give us freedom to make transactions as per our needs but both have their specific benefits that you must be aware of to take a wise decision when you next time pay your bill or go out shopping with your family.

At times you can’t decide which card to use to make a payment as mostly people carry both debit and credit cards in their wallets. When it comes to deciding which card to use more frequently, it is crucial to consider their specific needs.

In India, debit cards have gained immense popularity due to their simplicity and convenience. With a debit card, you can make purchases or withdraw cash directly from your bank account. This makes it an ideal choice for those who prefer to keep their expenses in check and avoid accumulating debt. Moreover, debit cards are widely accepted across the country, allowing you to transact at most merchants, online retailers, and ATMs.

Also Read: Maximising Rewards: How to prevent expiry of credit card reward points

The government’s push towards a digital economy with initiatives like Digital India and the Unified Payments Interface (UPI) has further propelled the use of debit cards. These cards seamlessly integrate with UPI platforms, enabling instant and secure transactions through mobile banking apps. The widespread availability of UPI-enabled payment solutions has made debit cards an essential tool for the majority of Indians, promoting financial inclusion and reducing reliance on cash transactions.

Like debit cards, credit cards also have their advantages.

Adhil Shetty, CEO,, says, “Credit cards are a very useful financial product that you cannot afford to ignore owing to multiple benefits. We have been witnessing a significant surge in credit cards’ usage in recent years. With attractive rewards programs, cashback offers, and discounts on various categories such as dining, shopping, and travel, credit cards have become a popular choice for Indian consumers. Credit cards also provide a line of credit that can be particularly useful during emergencies or when making large purchases.”

However, it is essential to exercise caution when using credit cards. While credit cards offer convenience and rewards, they also carry the risk of debt accumulation, if not managed responsibly. High-interest rates on outstanding balances and penalty charges for late payments can quickly turn credit card usage into a financial burden. Therefore, it is crucial for consumers to assess their financial discipline and ability to repay before overspending via a credit card.

When it comes to debit cards, they have some significant advantages. “Debit cards allow individuals without access to formal banking services to join the digital financial ecosystem and enjoy the benefits of secure and convenient transactions,” Shetty adds.

Now let’s talk about the security aspect of the card usage that cannot be overlooked. Both debit and credit cards offer robust security measures such as PIN-based transactions, two-factor authentication, and SMS alerts for every transaction. However, credit cards typically provide better protection against fraud and unauthorised transactions, as credit cardholders can dispute charges more easily and enjoy greater liability protection compared to debit cardholders.

Finally, the choice between using a debit card or a credit card depends on various factors. Debit cards are ideal for those who prioritise responsible spending, financial discipline, and seamless integration with digital payment platforms like UPI. They provide widespread accessibility and are an essential tool for financial inclusion. Credit cards, on the other hand, offer additional benefits, rewards, and financial flexibility but require disciplined usage and careful consideration of interest rates and fees.

The decision should be based on spending habits, and the ability to manage credit responsibly. Regardless of the choice, it is vital to understand the terms and conditions associated with each card, and use plastic money wisely.


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