The Key Difference Between Credit Card and Debit Card

credit card vs debit card
Feature	Credit Card	Debit Card
Definition	A payment card allowing users to borrow money up to a credit limit for purchases.	A payment card linked directly to a bank account to spend available funds.
Source of Funds	Borrowed money from the card issuer (credit line).	Own money available in the linked bank account.
Payment Due	Must be paid later, often monthly, with possible interest on unpaid balance.	Funds deducted immediately from the bank account.
Credit Limit	Has a pre-approved credit limit.	No credit limit; limited to available account balance.
Interest Charges	Interest charged on unpaid balances after due date.	No interest charges since spending own money.
Fees	May have annual fees, late payment fees, and other charges.	Usually minimal or no fees; some banks may charge for ATM use.
Impact on Credit Score	Payments affect credit score and credit history.	Generally does not affect credit score directly.
Fraud Protection	Strong fraud protection, liability limits, and dispute resolution.	Fraud protection varies, but usually less protection than credit cards.
Usage	Useful for building credit, large purchases, and emergencies.	Used for everyday spending within available balance.