Both debit and credit cards are tools to withdraw money from available funds and utilise them without the need of paper money. Though a debit card allows you to withdraw cash at any instant, it has few restrictions.
You cannot withdraw funds beyond the total sum which is available in your bank account. With a credit card through, you can utilise funds even if you do not have them. Credit cards function on a pre-set credit limit. You can make any amount of transactions within that limit. However there are other differences between a credit and a debit card.
A credit card comes with robust security measures apart from the additional monetary support. Before you apply for credit card, know about the following advantages and the security features it provides to make the best of them:
- Security against your stolen card –
One of the biggest reasons credits cards are more secure than debit cards is due to its policies to protect its customers against theft. There are a few simple steps to follow once the card is stolen.
- Call your credit card issuer immediately to report about the theft in the hotline number. You can find your issuer’s number from your credit card statement.
- The issuer needs to verify your identity. The financial institution will ask about your name, phone number, Aadhaar card, PAN card, Voter ID, etc. However, the verification process may differ between different financial institutions.
- Nowadays, you can directly hotlist your lost credit card from the net-banking app.
- You will find a detailed overview of all your transaction in your credit card’s monthly statement. Carefully go through the particulars every month and check for any discrepancies. If there is any illicit transaction, inform your issuer and follow the necessary steps to prevent unauthorised billing.
- Affects your CIBIL score –
Credit cards have a direct effect on your CIBIL score. It is a three digit number (ranging from 300 to 900) that represents your financial history. CIBIL/credit score is one of the primary parameters to avail loans. The higher your CIBIL score, the greater your chance is of availing a credit.
Whenever you use a credit card to purchase any appliance or essential items and repay the due amount in time, your credit score improves. Timely repayment implies that you are financially responsible which directly reflects on your credit score.
- Converts your credit limit to emergency loan –
NBFCs like Bajaj Finserv offer several other features and benefits with their Bajaj Finserv RBL Bank SuperCard. It is a combination of 4 cards into one; you can use it as a credit card, loan card, EMI card, or cash card according to your requirement.
During an emergency, you can convert your card’s cash limit to an interest-free loan and use the entire amount as per your requirements. Such an instant loan is available up to 90 days beyond which you will be liable to pay interest.
The entire process is easy, smooth and hassle-free. The security of an instant loan during any dire situation helps a borrower to continue his daily responsibilities without having to use his savings.
None of these advantages is available on any debit card, and neither does it provide the security of the credit cards.
Knowing these differences between a credit and a debit card, you can easily apply for a credit card, as all the information for your transactions will be mailed to your registered e-mail address.
NBFCs like Bajaj Finserv have attractive offers on credit cards including interest-free cash withdrawals, effortless EMI conversions and more. They also provide you pre-approved offers on credit cards, personal loans, home loans, business loans and a range of other financial products. Such offers not only to simplify the process of availing finance, but also helps you save on time. You only have to share some essential details online to check out your pre-approved offer.
A credit card helps in solving a lot of your financial problems. It can help you create a stable financial base and aid to overcome an unforeseen financial crisis. Now that you know the primary differences between credit card and debit card, properly utilise the security advantages and the convenience of a credit card. Be a responsible user and you will surely understand why a credit card is often regarded as one of the best and safest financial tools around.