Under most circumstances, using a credit card is better than using a debit card. This is true not just in India but across the world. This is why there’s a sharp rise in the number of credit cards being issued every year. Although there are several reasons for this, the most obvious ones are mentioned below:

The purchasing power that the user gets: If you use a debit card, the maximum amount that you can spend on it is the amount that you have in that particular savings account. So for most individuals, making a high-value purchase remains a distant dream. But a credit card offers you a certain amount of credit using which you can make high-value purchases if the budget is under the credit limit on the card. Although you need to repay the entire amount that you spend on your credit card, you still get some time and a host of options to repay your debts.

Sign-up benefits: To attract customers, credit card issuers usually launch several tempting benefits and offers as a part of their welcome kit. Some of these are the attractive reward point schemes and discounts on travel and hotel bookings. However, very few debit cards offer this kind of sign-up benefits to the users.

A chance to boost the credit score: An ideal use of the credit card i.e. making regular and timely payments towards the card account and maintaining a desirable credit utilization ratio is a very effective way of improving the credit score. It’s a known fact that having a high credit score is very important for availing a loan from any financial institution. But using a debit card doesn’t have any such effect on your credit history and credit score.

Attractive reward point and cashback programs: The reward point and cashback schemes that a credit card offers are usually far more appealing than those offered by debit cards. You also get a long list of tempting options to redeem these points at your convenience. Some of these are cashback programs, air miles, and hotel booking benefits.

Flexible repayment options: If the outstanding on your credit card is high, you may opt to repay only a part of it. Although you would have to an interest on the balance amount, you don’t have to worry about paying the entire amount at a single time. This is one of the significant benefits of using a credit card.

EMI options: A credit card gives you the option of EMI while making high-value purchases. This allows you to repay the debts in easily manageable monthly instalments. There’s also the no-cost EMI that most online retailers offer their customers.

Safety: Another advantage of using a credit card is the set of advanced safety features that it carries. Paying with a credit card is safer the paying with a debit card because of the several digital security stages through which such credit card payments are executed.