When a beginner decides to opt for plastic money, they typically get confused between debit card vs credit card. Both have their benefits where the debit card does not involve the regular bill payment hassle while credit cards offer more rewards, cashback, and discounts. Owing to the latter, credit cards are more popular. They are provided by banks, usually while opening a savings or salary account.

You can purchase varied items and repay them on a specific date as determined by your credit provider. It is possible to hold multiple credit cards.

How to apply for one?

Following are the steps –

• Compare different banks and credit companies who provide the card


• Select the creditor and check the kind of cards the same bank provides


• Check the annual maintenance fees and associated additional charges


• Look out for the rewards and benefits you get by comparing the cards. Most creditors offer reward points, cashback, airport lounge access, and discount on shopping


• Fill the application form thoroughly and review them


• Upload the relevant documents such as ID, address, and employment proofs


• Send the application, and you receive the card immediately

If you are eligible, the bank sends credit cards through post or courier within 10 to 14 business days. Many banks do not assign PINs anymore and need to set them through internet banking account or via ATM terminals.

Credit limit, bill payment, and interest rates:

There is a huge difference between debit card vs credit card. The credit card comes with a fixed credit limit whereas there is no credit limit for debit card. It gets determined based on the savings parked in your account and the net monthly income you draw. The credit limit is the maximum amount you can borrow within a month. It is not possible to exceed the credit limit. The creditor holds the discretion for increasing or decreasing the credit limit.

The creditor does not levy any interest rates on the card if you repay the bill on or before the repayment date. If you fail to do so, you can still make partial payments. It is essential to be aware of the billing date and cycle. You can also set the auto-repayment facility, i.e. linking the card to your savings account. This way, the amount gets debited from the savings on the due date.

Security measures for the card:

Credit cards are incredibly convenient, and it is the responsibility of the owner to exercise the security measures while using the card. Some security measures are –

• Avoid sharing the card details especially the PIN and CVV numbers


• Memorise the PIN. Do not write it and save them in the wallet as they could get stolen


• Sign on the flip side of the card, i.e. the signature flip for preventing the misuse of the card


• Use credit cards cautiously while making online purchase