The Key Difference Between Credit and Debit

credit vs debit
Feature	Credit	Debit
Definition	Borrowing money or purchasing goods/services now and paying later.	Spending money directly from available funds in your bank account.
Source of Funds	Lender or credit issuer's money (e.g., credit card, loan).	Your own money available in your bank account.
Repayment	Must repay borrowed amount, often with interest if unpaid on time.	Immediate deduction from your bank account; no repayment needed.
Interest	Interest charged on unpaid balances.	No interest since you use your own money.
Impact on Credit Score	Affects credit score based on repayment behavior.	Generally does not affect credit score.
Risk	Risk of debt accumulation if not managed well.	Low risk; limited to available funds.
Usage	Used for borrowing, building credit history, emergencies.	Used for everyday spending within account balance.