HomeCredit Card7 Reasons Credit Cards are Better Choice than Debit Cards

7 Reasons Credit Cards are Better Choice than Debit Cards

While both credit cards and debit cards have their pros and cons, research suggests that the former’s market in India has been increasing significantly.

Since January 2018, transactions made through POS with credit cards and debit cards were almost the same. In July 2019, transactions done with credit cards surpassed that of debit cards.

While the total amount transacted through credit cards stood at Rs.59,600 crore, that of debit cards was around Rs.58,100 crore.

Hence, it is a clear indication that the demand for an online credit card is on the rise. And, that is owing to several reasons.

Reasons to Choose Credit Cards Over Debit Cards

The conflict between credit cards and debit cards is inevitable as both these payment cards have their share of merits. The primary difference between credit cards and debit cards is that the former is the borrowed money that one uses to meet different financial requirements. On the contrary, the latter is an individual’s own money that he/she uses.

However, credit cards encompass an array of benefits that keep them ahead of other payment cards.

Following are some of the pointers that prove why credit cards are better than debit cards:

1. Aids in Improving Credit Score

Individuals can use an online credit card to improve their credit score. They only have to use their credit card responsibly. One of the easiest ways to do so is by paying bills within due dates. Also, cardholders must always pay the total amount due and keep the credit utilization under 30%.

2. Better Fraud Management

Since credit cards come with a pay-later policy, customers get time to report a cyber theft before the due date. The issuer will resolve the matter accordingly, and perhaps the cardholder will be exempted from paying for that unauthorized transaction.

3. Attractive Reward Points

One of the reasons for the towering popularity of an online credit card is the offers and reward points against almost every transaction made through the card. These reward points are added to a cardholder’s account directly. On the other hand, a debit card does not come with such offers.

4. Instant Personal Loan

Credit cards enable individuals to opt for a personal loan against the credit limit to meet immediate financial requirements.

The Bajaj Finserv RBL Bank SuperCard lets cardholders avail of an instant personal loan against the unutilized credit limit of the card with zero interest for up to 90 days.

The company also provides pre-approved offers that make the entire process to avail financing hassle-free. These offers are also available on other financial products like personal loans, business loans, etc. You can check your pre-approved offer by entering your name and phone number.

5. Apt for Foreign Trips

With an online credit card, individuals can enjoy a hassle-free travel experience. It is also beneficial for overseas trips. By using credit cards, individuals can make all the necessary payments even with zero additional charges in some cases.

6. Customized for Specific Needs

Unlike debit cards, credit cards come with different variants for particular needs. For example, financial institutions offer products for frequent travelers, those who spend highly on fuel, moviegoers, online shoppers, etc.

7. Additional Offers

Using an online credit card, you can enjoy some additional benefits and perks like travel miles, chargeback facility, and several others that debit cards do not cover.

These are some of the reasons why credit cards are better than debit cards. However, individuals need to choose an online credit card carefully to avoid any financial pitfalls in the future. They must specifically consider the different charges before applying.


In conclusion, we can say that your credit card is like a loan. When you open a credit card, you’re approved for a certain line of credit. BTW which is also known as a credit limit, a line of credit is how much you can spend before your card is maxed out and will no longer be used for purchases.

On the other hand, your credit limit is based on your credit history and income; the stronger those are, the more trust you have and the higher your credit limit will be.

So Every month you’ll get a bill for the amount you spent throughout the month. Though you’re only required to cover the minimum payment by the due date, you’ll pay interest on whatever amount you remain on your credit card.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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