Debit card vs. Credit card – which one should you use?

With services within the banking sector being revolutionized due to the immense technological advances, a lot of new banking products have been introduced that have created ease for all its stakeholders in terms of increased effectiveness and higher efficiency.

Debit and Credit cards are the two of the most advanced products, which have been developed to make payment procedure trouble-free. Debit cards allow its users to make payment directly from the holder’s bank account; whereas, credit cards allow its holders to borrow money now and pay the required amount at a later date.

The best debit and credit cards from 3 of the top banks of Pakistan are shown below:

1. Standard Chartered Bank (SCB)

SCB Debit Card has the following features:

  1. It provides a range of discounts for shopping, restaurant, Petrol, etc.
  2. It also provide additional services such as e-statements, protection from any unauthorized activity due to stolen cards etc.

On the contrary, SCB Easy Credit card also provides the holder with the following benefits:

  1. Withdrawal of up to 90% of the credit limit with no cash advance fees
  2. It offers the lowest mark-up rate of 36% along with an attractive installment plan
  3. Other general benefits include online banking, supplementary cards, e-statements, annual fee waivers etc.

2. Faysal Bank

The Pocketmate Debit card provides a safer mode of payment, instead of using cash. Some of its most important features include:

  1. It has a global reach and acceptability with expense management just a click away
  2. It allows you to access your funds whenever you want may it be for shopping, dining, travelling or emergencies.

On the other hand, MC2 credit card offers an instant reward redemption at partner merchants, double reward points on international spending with discounts up to 20% at restaurants and up to 50% at lifestyle brands.

3. Habib Bank limited (HBL)

HBL Debit card provides hassle-free and cashless shopping with the transaction list always available in your account statement. It helps make quick transfer to other HBL accounts, and 1LINK member bank accounts and also pays your utility bills instantly.

HBL Green Credit Card offers various features and benefits summed up in three categories which are:

  • Peace of Mind includes international acceptance, security and zero liability on lost card etc.
  • Freedom and flexibility includes balance transfer facility, HBL Instalment plan, Bill payment etc.
  • Convenience includes internet banking, Supplementary cards, SMS Alerts, e-statements etc.

Comparing Credit Vs. Debit Card of each bank

The main features of the mostly used both debt and credit cards from the famous banks have been highlight above. But are you still confused as to which one to buy because all of them look so appealing and lucrative. Worry not because we have made it easier for you.

The following table summarizes all the major points that one must consider before going for a Debit or a Credit card.

Which is the best one?

This will vary as per your needs. If your lifestyle involves buying brands and traveling then you may go for a Credit card as it offers a lot more benefits than a Debit card. On the other hand, if your primary purpose to own a card is to make easy payments without having to borrowing money or pay interest on the outstanding value, then Debit card will be a better choice.

As the table above shows, each card is superior than the other in some respect. Of course, each bank fulfills the needs of its target market, which is why it offers different terms on its credit cards. Therefore, we cannot comprehensively conclude one bank’s card is superior to the other.

Hence, one should make a wise choice when it comes to owning a debit or a credit card. Charges, incentives and other factors can have severe consequences on the financial health of the customer.