Cards – Compare Credit Cards & Debit Cards

• Team Antworks

Credit Cards

For a generation which values instant gratification, credit cards have been a blessing. Given the long list of benefits which they provide, credit cards continue to be the rage in today’s times. Unlike debit cards which access pre-available funds, a credit card basically allows the cardholder to borrow funds on credit from the bank in order to make purchases. This borrowed credit must be paid back to the bank within the given period of time (grace period). If the cardholder fails to do so, the borrowed amount will begin to attract interest which then must be paid along with the borrowed amount.

Types of Credit Cards

There is a large number of banks and financial institutions, each of which provides a range of well-appointed credit cards to cater to the differing needs of customers. In India, credit cards are distinguished on the level of services which they provide or the specific purpose which they’re designed to fulfill. The most common variants in credit cards include Platinum, Gold, Silver, Titanium, Classic, Premium and Business, to begin with.

Co-branded credit cards

A co-branded card essentially means a card that is sponsored jointly by the bank and a retailer. These cards usually carry a variety of retailer specific incentives like discounts, rebates etc., but can also be used with other merchants. For example, HSBC offers co-branded cards with Westside, Spencers, MakeMyTrip, etc.

Auto & Fuel credit cards

These cards are designed to provide cash back or discounts at refueling stations, but can also be used elsewhere. For example, IndianOil Citibank Platinum Credit Card.

Travel credit cards

Travel cards are usually introduced in association with a travel partner or an airline where customers can avail special discounts on flight tickets or bookings via a travel booking site. For example, Citibank PremierMiles Card, Air India SBI Signature Card.

Entertainment credit cards

These cards are designed to complement users who have an active lifestyle and provide exclusive rewards on bookings for movies, shows, concerts, music, video games, sporting events and much more. For example, ICICI Bank Rubyx Credit Cards & HDFC Platinum Times Card.

Cash back / Rewards credit cards

Reward points on credit cards is one of the original benefits of a credit card where the card holder earns a certain number of points for every spending. Cash back credit cards have been introduced only recently where the user gets a pre-determined amount of cash back after every spending. For example, Citibank Cashback Credit Card & Standard Chartered Super Value Titanium Credit Card.

Credit cards for Women

Various banks have introduced credit cards tailored especially for women, who may be working professionals or home makers. These cards provide a range of benefits like reward points, cashback, discounts and more on shopping, groceries at supermarkets, beauty chains, apparel stores, e-shopping partners and more.

Lifestyle credit cards

Lifestyle credit cards are designed to complement your passion. Widely accepted nationally and internationally, these cards are introduced in joint association with a particular merchant and offer exclusive discounts, cash back and rebates on dining, travel, shopping and a host of other leisure activities. Enjoy privilege access to VIP lounges at airports, and enjoy a string of other complimentary benefits. The American Express Platinum Reserve Credit Card and ICICI Bank Rubyx American Express/MasterCard Credit Card are two of the most popular lifestyle cards available.

Advantages

Credit cards have eliminated the need for carrying cash in your pocket. Extremely convenient and safe to use, credit cards carry a string of advantages, some of which include the following.

• • Safe Alternative to Cash

Credit cards have successfully replaced paper money all over the world as they are easier and safer not only to carry but also store.

• • Chance to Improve Credit History

Your credit card history is closely linked to your credit score. Hence, using your card responsibly can help improve your credit score which in turn will help you while applying for a loan in the future.

• • Emergency Help

A credit card is indispensable when it comes to bearing emergency or unpredictable expenses.

• • Perks

Credit cards offer a host of exciting perks and benefits to the holder like Cashback, Reward points, Signup Bonuses, AirMiles, discounts, rebates and more.

• • Widely Accepted

Credit cards have been a widely accepted and recognized means of payment not only nationally but also internationally.

Debit Cards

A debit card is basically a banking instrument which gives the holder electronic access to their current or savings bank account. Card holders may use the card to withdraw money via an ATM or to get the cost of online/offline purchases charged to their account through their debit cards.

Types of Debit Cards

In India, debit cards are primarily used for ATM transactions. While most banks issue VISA or MasterCard debit cards, banks like SBI and Citibank also issue Maestro debit cards to customers. However, in India, debit card transactions are routed through Visa or MasterCard networks within the country and overseas and not directly via the issuing bank.

Advantages

A debit cards is a very handy tool for making quick and hassle free purchases. Widely accepted all over the world, debit cards have successfully replaced paper money as they continue to make transacting simpler. Given that, debit cards carry multiple advantages, some of which are discussed below.

• • Convenient Alternative For Cash

A debit card is a very convenient alternative for carrying wads of cash around. Also, transacting with a card is simpler and quicker.

• • Nominal Fee

Debit cards usually carry no fee or a very nominal fee, unlike credit cards which often have a yearly membership fee, joining fee, etc.

• • Quicker Transacting

Debit card transactions happen instantly. The entire process of swiping the card to the funds being transferred takes less than a minute.

• • Keep You Within Budget

Since a debit card accesses pre-available funds, it is easier to keep an eye on your expenses. A mini account statement can be procured from your respective bank’s ATM which will give you a list of recently made transactions.

• • Instant Access to Cash

Being a pre-loaded card which takes money from an existing account, a debit card gives you instant access to cash.

• • Easier to Procure Than a Credit Card

Unlike credit cards which require you to furnish a flurry of documents just in order to apply, a debit card is relatively much easier to procure.

How Does a Debit Card differ from a Credit Card?

A debit card differs from a credit card in a variety of ways.

Criteria	Credit Card	Debit Card
1. Connected To	Need not be connected to any account.	Requires to be connected to a checking / savings account
2. Monthly bill	Yes	No
3. Spending Limit	Credit limit is fixed for each card but varies from card to card.	No credit limit. You can only spend as much is there in the linked bank account
4. Interest Charged	Yes, if bill unpaid beyond due date.	No interest charged as no money is borrowed.
5. Credit Score	Responsible use can help improve credit score and vice versa	No effect on credit score.