Difference between credit cards and debit cards.

Debit and credit cards offer more than a way to access money without having to carry around cash or a cheque book.

Debit cards are like digitized versions of cheque book; they are linked to card holder bank account, and money is debited (withdrawn) from the account as soon as the transaction occurs. 

Most debit cards are free with an account at a bank or financial institutes. They can also be used to conveniently withdraw cash from ATMs. 

Credit cards are different; they offer a line of credit (i.e., a loan) that is interest-free if the monthly credit card bill is paid on time. Instead of being connected to a personal bank account. 

A credit card is connected to the bank or financial institution that issued the card. So whenever you use a credit card, the issuer pays to the merchant and you go into debt to the card issuer (i.e. you suppose to pay then debt amount once get the bill). 

Credit cards have the advantage of rewards programs but such cards often require an annual fee to use or some offer it free. 

Financial responsibility is a big factor in credit card use; it is easy to overspend and then get buried in overwhelming credit card debt at a very high interest rates.

Following are the difference between credit cards and debit cards.

Credit cards: are lines of credit. When you use a credit card, the issuer puts money toward the transaction. This is a loan you are expected to pay back in full (usually within 30 days), unless you want to be charged interest. Debit cards: Any time you use a debit card to buy something, money is deducted from your account. With a debit card, you can really only spend the money you have available to you.

Credit cards are not required to be connected to an account (saving account or salary account). Debit cards are connected to your account (saving account/salary account).

Credit cards: monthly bill is generated if you have debits and sent you registered email (softcopy) and hardcopy to registered address (home/office). Debit cards: No monthly bill. As directly debited from your linked account.

Credit cards: To receiving a credit card somewhat difficult, depending on your credit score and others details credit card is issued. Debit cards: To receiving a debit card easy, with basically no barrier only you must have saving accounts (saving account or salary account).

Credit cards: The credit limit set by the credit issuer. Limits increase or stay the same over time as a borrower's creditworthiness changes. Debit cards: However much is in the bank account connected to the card.

Credit cards: If a credit card bill is not paid in full, interest is charged on outstanding balance. The interest rate is usually very high it is vary from issuers. Debit cards: No interest is charged because no money is borrowed as debts.

Note: to holding credit card really beneficial but don’t cross your limits and pay the bills on time.