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What is the difference between credit card and debit card

April 12th, 2010 by
  • Shailesh, 26, earns Rs 80,000 per month and saves almost half of the salary. He owns an International Gold debit card and two credit cards. When it comes to purchase, Shailesh prefers to swipe credit card instead of the debit card. One day, his eyes fell on a mobile phone and he took instant liking to it. The phone comes at a steep Rs 43,000 but the shop is offering a 2.5 per cent discount on it if the purchase is made with the same debit card that Shailesh owns. But Shailesh is keen on making the payment with a credit card as he wants to maximise his reward points. He is too confused as how to make the payment, so he evaluates the four options that he has separately.

    His options are:

    • Use the debit card and avail 2.5 per cent discount
    • Use a credit card and get the maximum interest-free period
    • Use a credit card and make use of the EMI facility
    • Use a credit card and transfer the balance to another card

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    Published on April 12, 2010 · Filed under: Personal Finance;
    2 Comments

2 Responses to “What is the difference between credit card and debit card”

  1. Santosh said on

    Quite an interesting case study! Do you have a calculator which could show by when I can repay me credit card debt if I only pay the minimum due every time. I have an outstanding of around 85,000 currently

  2. A very interesting and helpful case study. It clearly provides a lot insights and particularity helps an individual to better utilize the debit or credit card to maximize the reward points.

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