Home Discover Expert Speak Looks can be Deceptive - Credit Cards and Debit Cards Only Look Similar

Looks can be Deceptive - Credit Cards and Debit Cards Only Look Similar

By Bhavesh Mehta - Jan 4,2020
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Looks can be deceptive -credit cards and debit cards only look similar

A debit card is an instrument which helps customers withdraw money from their savings account or from the money already deposited by the customer.

On the contrary, a credit card gives the benefit of spending an amount as a loan (credit) which can be repaid later, generally, within 50 days of the payment cycle. In short, debit is something which goes out and credit is something which comes in. Since it’s a loan, if someone does not pay back the loan amount, an additional interest rate and penalties will be incurred by the customer. Most people use credit cards due to the unavailability of funds for immediate purchases, but better options are available in the market. The Bajaj Finserv EMI Card offers high pre-approved loan limit with flexible repayment tenures. You can buy electronics such as the latest television sets like the LG LED Smart TVs and the trendiest smartphones such as Mi LED TV, from a range of cost-friendly options, including gadgets and appliances from leading brands like Sony, Panasonic, Vivo, and many more, from the Bajaj Finserv EMI Store using the Bajaj Finserv EMI Card.

So, the key difference between a debit and credit card is that credit cards allow one to pay instantly while purchasing anything on the payment gateway, regardless of the balance in your savings account. On the contrary, with a debit card, if the balance in the account is low, one cannot make the purchase instantly.

Key differences between a Credit card and Debit card

  • Limit for withdrawal 

For credit card, it’s the bank who decides the credit/loan limit for an individual on the basis of bureau history and credit profile. Whereas in a debit card, the amount is directly debited from the bank account and thus the minimum amount required in the savings account acts as the limit for debit card. With the Bajaj Finserv EMI Card, you can get a pre-approved loan of up to Rs 1.5 lakhs to buy a variety of products like LG LED smart TV and Mi LED TV from the Bajaj Finserv EMI Store. The card can also be used to shop with over 84,200 network partners across more than 1300 cities.

  • Payment of monthly bills 

Credit cards make it mandatory to pay your bills on a monthly basis as per the pre-set cycle while using the card. However, in debit cards, there is no concept of monthly bill generation or bill payments as the amount gets debited directly from the bank account. In the case of Bajaj Finserv EMI Card, you can choose a flexible repayment tenure between 3 months and 24 months. With the card, you can also avail no-cost EMI while shopping from the Bajaj Finserv EMI Store. You can enjoy more deals and discounts if you choose to shop through the Finserv MARKETS App, which guarantees transparent pricing and personalised offers.

  • Security

A credit card provides additional protection and services compared to that of a debit card (e.g. ease of returns, a 50-day interest-free time period to repay the loan, cashback offers, EMI on interest, 0% interest EMIs, Free Airport lounge access, etc). Both the cards provide insurance protection under a specific category of cards. However, the protection is higher in credit cards compared to that in Debit cards. Customers also use credit cards as the preferred mode of payment for flights and hotel bookings. Also, a credit card is a better instrument to automate the payment of recurring bills (e.g. electricity bills, Mobile bills, etc.)

  • Rate of Interest

In the case of non-payment of credit card bills, a heavy interest amount is charged to customers. However, since in debit card, the amount is directly debited from the account, the customer does not require to pay any additional charges such as interest or late fees.

Knowing the difference between credit and debit cards is crucial for consumers to make an informed decision. Once you’re clear on the difference between the two, based on your criteria such as your financial goals and needs, you can choose your preferred option.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.


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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522