Online shopping is a great way to make international and domestic purchases without a physical visit. Moreover, most merchants offer multiple payment modes, including credit and debit cards. By understanding the difference between a credit card and a debit card and their impact on your finances, you can choose the right option.
Key Differences Between Debit and Credit Cards
Here are some fundamental distinguishing factors to keep in mind:
Why to Choose Credit Cards to Shop Online
With the above points of difference between a credit card and a debit card, you can decide which card to use for online shopping. Credit cards are normally a better choice because they:
Offer Added Perks
You can get discounts from partner brands and redeem the points you earn for a large catalogue of products and services. This makes credit cards a boon for saving more.
Help Build Creditworthiness
The way you use credit is recorded and reflected in your credit profile. If you use it responsibly and pay the bills on time, you can create a strong profile. This helps increase your chances of getting better offers of credit during times of need in the future.
Provide Better Security
Along with the standard security measures of OTP, PIN, and CVV, credit cards often come with zero liability protection. If someone else uses your card after it is lost or stolen, you are protected from paying out of your pocket.
Allow Easy EMI Conversion
Most credit cards offer the option of converting your online shopping bills into EMIs. This makes it easy on the pocket if you are shopping for festive seasons or to upgrade your home electronics. The interest rate for this is affordable, and, in some cases, you can get no-cost EMIs.
You can also use this option at the time of credit card bill payment. Depending on the issuer, you can also use it for a credit card to credit card payment and easily manage your finances.
Why to Choose Debit Cards to Shop Online
These cards may be a better choice if you:
Overspend
With credit cards, you borrow funds from issuers. If you spend beyond your budget, you may have trouble paying your bills. In such cases, a debit card can be safer.
Miss or Delay Payments
Credit cards attract interest, which can be higher than other credit facilities. Since the interest compounds, not paying the bill for a prolonged period can lead to higher debt. So, use a debit card if you are likely to miss due dates.
Now that you know the difference between a credit card and a debit card and how to choose one for online shopping, it’s time to choose a card that rewards you on each payment. If you are looking for a credit card for online shopping and other needs, consider the One Credit Card.
You can earn up to 5X rewards on your top two spending categories and redeem your points at zero cost. The points also come with no expiration, so you can use them as per your convenience.
You can use it for a credit card to credit card payment, and a host of other expenses without any hassles. Apply online today for this stylish credit card backed by the powerful One Credit Card app, which helps you manage your card like a pro.