Both Credit Cards and Debit Cards are part of our financial system. Credit cards as well as Debit Cards typically look identical, with 16-digit card numbers, expiration dates, CVV and other security features such as EMV chips. Both Credit Cards and Debit Cards will help you to make convenient purchases in stores as well as online. Both Credit Cards and Debit Cards will help you to prevent carrying cash. Banks usually offer reward points as well as various deals & offers for both Credit Cards and Debit Cards.
Source of Funds
The key difference between a Credit Card and a Debit Card is that a Credit Card lets you borrow funds to repay later while a Debit Card helps you to use the money from your Bank account. That is, Credit cards give you access to a line of credit issued by a bank while source of funds for Debit cards will be your Savings account or Current account.
For Credit Cards, your issuer bank will be fixing a limit beyond which you will not be able to make any purchases. In the case of Debit Cards, you can spend up to the balance of your Savings or Current account.
For Credit Cards, you will be billed on a monthly basis and you can receive the statement of transactions. For Debit Cards, there is no billing or statement. Credit Card bill needs to be paid before its due date.
Interest on Spends
For Credit Cards, interest will be charged on the outstanding amount if it hasn't been paid by the due date. For Debit Cards, no interest will be charged.
To get a Debit Card, you need to have a Savings Account or Current Account with your Bank. Credit Cards are issued by Bank based on various factors such as your income, credit score, credit history, past relationship with the Bank etc.
If you withdraw money from ATM using your Debit Card, no interest will be charged. Because you are withdrawing the amount deposited in your bank account. However, if you use your Credit Card to withdraw money from ATM, bank will consider this as a type of loan / credit which you will have to repay with a high rate of interest.
Missing a payment on Credit Card can adversely affect your credit score. However, Credit Score is not related to your Debit Card spends.