What is the difference between a credit card and a debit card?

A credit card and a debit card may look similar, but they work very differently. A debit card is linked directly to a bank account, and when used for purchases, the money is immediately deducted from the user’s available balance. It helps people spend only what they already have, which makes it a good tool for budgeting and avoiding debt. On the other hand, a credit card allows the user to borrow money from the issuing bank up to a set limit. Purchases are charged to the account, and repayment can be made either in full or in installments with interest if not paid completely. Credit cards often come with rewards, cashback, and benefits, but misusing them can lead to debt. Debit cards provide safer spending control, while credit cards offer flexibility and credit-building opportunities.