There are several methods of payment that are accepted by sellers both online and offline.Besides the digital payment avenues, credit and debit cards still remain two of the most prevalent ways of secure payment.

However, not many people are aware of how to effectively utilise the two cards. 

Your debit card may be the card of your choosing at the beginning of the month when your pockets are full. And as the month comes to an end, perhaps using your credit card will become your favourite method of payment.

But did you know that compared to using debit cards, using credit cards from the start will enable you to reduce your spending more?

While debit cards have many advantages, it is difficult to match the savings you can get with your credit card. 

Does this seem hard to believe? Continue reading to learn why using a credit card is better than using a debit card.

Benefits of Using Credit Cards

Some people avoid using credit cards out of concern that they may fall deeply into debt. Given that credit card interest rates are typically high and can build up quickly, this is a genuine concern. 

Although you should make every effort to prevent credit card debt, you may still benefit from credit cards' many advantages if you use them responsibly.

The benefits of using a credit card are listed below.

  • Create a Credit History

Using a credit card responsibly can help you if you want to establish credit or if you want to increase your credit score.

Debit cards, on the other hand, aren't listed anywhere in your credit reports, so they can't help you establish or raise your credit score.

Your credit journey can be greatly aided by using credit cards properly, which includes paying your bills on time, keeping a low credit utilisation ratio, and refraining from applying for many cards at once.

Therefore, picking a credit card is always a good idea if your objective is to raise or improve your credit score.

  • A Bank account is not necessary

Obtaining a credit card is not dependent upon having a bank account with the institution.

This is so that you can borrow money and then pay it back using a credit card, which is not connected to your bank account.

With credit cards, you may make purchases without cash and then pay them off whenever it's convenient for you.

While a savings or current account is mandatorily required to use a debit card.

Credit cards undoubtedly provide you with the freedom to shop or make purchases whenever it suits you, but to have a respectable credit card, a strong credit score is necessary.

People with an excellent credit history often receive credit cards from card issuers.

If you meet the criteria for a credit card and are eligible, you should apply for one to take advantage of the rewards. To preserve a good credit history, keep in mind to use your credit card properly.

  • Forex markup fee

If you frequently travel overseas, credit cards may be the ideal travelling companion.

The bank assesses a forex markup fee on debit and credit cards whenever you make a foreign exchange transaction.

Although debit cards can be used for international transactions, there are credit cards on the market with cheap foreign exchange markup fees.

Some credit cards may significantly reduce your travel costs while enjoying exclusive benefits like free access to lounges and hotel membership, etc.

Therefore, selecting a credit card with a low forex markup fee is crucial while travelling abroad since debit cards do not offer the same advantages.

What Makes Credit Cards Safer than Debit Cards?

Given that now debit cards offer similar benefits or privileges to credit cards, credit cards are considered to be safer than debit cards for any transactions.

Apart from security, there are a few other things that suggest that credit cards are a safer option than debit cards, some of them are mentioned below. 

Your credit limit is not made up of personal funds

A debit card is connected to your current or savings account. As a result, you have to pay for every purchase you make using this card out of your wallet.

Your account will be depleted of any funds it already has if a hacker or fraudster gets access to your card, and you will have to wait many weeks while the financial institution looks into the incident and secures your account. 

However, it has been traditionally witnessed that money once debited from your savings account due to fraudulent activities is hardly ever restored by banks or financial institutions. 

Even if you take up the complaints to the RBI or other governing bodies, you might never get your personal funds back in your account.

In contrast, if you have a credit card, the provider offers you a credit limit based on your creditworthiness and income, allowing you to make purchases.

There is no relationship between the credit card limit to your savings account history. 

You may question misleading transactions and charges

The only way to register a dispute when you shop online with your debit card and are charged extra for products or services is to contact the seller and communicate with them.

This whole process may be frustrating and time-consuming.

As a result, you can save time and effort by raising complaints about a credit card directly with the issuer, who will then contact the merchant.

For mistaken billing and fraudulent transactions, you can also register disputes.

You are safeguarded from theft and fraud

Your debit card could be stolen, or personal account data may occasionally be compromised. Your only option in these situations is to notify the bank and request that your card is blocked.

They might or might not credit you for the money that was used without your knowledge or agreement.

A credit card, on the other hand, offers fraud and theft insurance.

This means that if you report a fraudulent credit card transaction within the allotted time, the issuer will instantly credit the relevant amount. Your obligation is thus diminished.

You have access to returns and extended warranties

A credit card's ability to offer an extended warranty and a return facility on some products and services is another feature that sets it apart from a debit card.

Once the manufacturer's warranty expires, the extended warranty takes effect.

As a result, the credit card company has the option to offer to replace or repair the products. 

Remember that a purchase without a warranty is not eligible for an extended warranty.

Factors to Consider Before Using a Credit Card 

Credit cards are undoubtedly a terrific tool to reduce your spending, but using them carelessly can put you in debt.

Therefore, before applying for a credit card, bear the following things in mind. 

  • Don't go over your credit limit. Instead, use it as little as possible to raise your credit score.
  • To prevent late payment fees and other interest charges, pay off your credit card balance in whole and on time.
  • Avoid using your credit card to withdraw cash because the fees are greater.
  • To get the most out of your credit card, always pick one that best fits your lifestyle.
  • To select the best credit card for you, you must weigh your options before applying.
  • Read the fees, charges, and any pertinent terms and conditions thoroughly.


The only way credit cards genuinely benefit you is if you utilise them sensibly and make your payments on time. If credit card interest starts to accrue on past-due amounts, using a credit card becomes significantly more expensive than using a debit card. 

Therefore, there are practical ways to keep track of your spending if you're concerned about charging more than you can afford to pay back on a credit card.

To make and maintain spending goals, you can use money management software, a phone note, or even a pen and paper.

It's time to put your debit card aside and start earning rewards once you have confidence in your ability to handle credit cards responsibly.