Here’s CEO Adhil Shetty on the Credit vs Debit Card debate in the latest edition of #PFTweetSized!
There are significant differences between Debit Cards and Credit Cards. A Debit Card can be availed by any individual who has a current or Savings Account in his/her name and has deposited a sum of money in it. A Debit Card holder can use his/her card to make purchases, provided he/she has funds available in the account. A Credit Card is offered by lenders to those who fulfil various eligibility criteria.
For people who apply for a Credit Card, a separate Credit Card account is opened in which the credit limit specified by the lender is available. This credit can be used by the borrower as a short-term loan and has to be repaid by the due date. An interest will be levied on the outstanding amount on the Credit Card.
Both types of cards have their pros and cons. Watch the video to know more.