Shopping habits have come a long way, and have evolved completely from what it was three to four decades earlier, the major reason being the rise of e-commerce, UPI payments, and digital wallets. And in the present day, these shoppers try their best to save every rupee spent, and not by accident, most of them choose to go for credit cards over debit cards. This is because of the attractive financial benefits, safety, and rewards a credit card brings with it when used wisely. In this article, you will understand what makes a credit card a better choice over a debit card, especially in 2025
1. Rewards and Cashbacks
The reward ecosystem of credit cards has attracted a lot of individuals. Whether it’s shopping online, dining out, or filling up fuel, credit cards now offer high cashback percentages, reward points, or instant discounts. Leading Indian banks like HDFC, ICICI, Axis Bank, and SBI have partnered with e-commerce giants like Amazon, Flipkart, Zomato, and Swiggy to give exclusive offers to credit card users. In contrast, debit cards usually offer little to no rewards. Even when they do, the offers are fewer and less lucrative. Therefore, for shoppers looking to stretch every rupee, credit cards offer better value. For example:
- Amazon Pay ICICI Credit Card gives you up to 5% cashback on Amazon.
- Axis Bank Ace Credit Card offers 2%– 5% cashback on Google Pay transactions.
- SBI Cashback Card provides 5% flat cashback on most online purchases.
2. Fraud Protection
As a debit card compromise can cause an instant loss of money in the bank, it is considered less secure when compared to a credit card, where if any fraudulent activity is detected, then any amount transferred can be blocked or retrieved in a shorter time. Additionally, it is important to know, most Indian banks offer zero-liability policies for unauthorized transactions reported within a specified time frame. This makes credit cards a safer option for online and international transactions, especially with the increasing cases of phishing and scam calls in India.
3. Building Credit Score
In recent times, credit score has become one of the most important parameters not just to get a loan but also for buying a house, getting a new job, or even applying for a rental. And to maintain a good credit score, a credit card plays a major role it. When you are a smart shopper, you make sure to pay the bills on time and keep the utilization of it under control, which will result in the betterment of your credit profile. On the other hand, when talking about a debit card, it does not contribute to your credit score in any way. This long-term advantage helps credit card users access lower interest rates on loans, higher credit limits, and premium financial products in the future.
Also read: Is the SBI ELITE Credit Card Worth It? These Benefits Say YES!
4. Access to Premium Deals and Services
Credit cards provide you with various offers such as airport lounge access, travel insurance and Buy 1 Get 1 free movie offers, and more. And most of these offers are available at no extra cost. These benefits are not found in debit cards, and for an individual who travels often or even occasionally, the value a credit card can offer can easily be offset by the annual card fees. In 2025, popular cards like the HDFC Regalia, Axis Magnus, and SBI Elite offer:
- Free domestic and international lounge access
- Complimentary travel insurance and hotel memberships
- Exclusive invites to events and brand launches
5. Flexible Payment Offers
Any credit card user will always have the benefit of using the EMI (Equated monthly Instalments) option for whatever purchases they are making. You can buy a smartphone, a laptop, or furniture and process the payments over 3, 6, or 12 months with little or no interest. While talking about debit card EMI options, only a handful of banks provide this service, and if they do, they require pre-approvals and a requirement of balance, making it less convenient. This makes a credit card a better choice, especially for big purchases or for emergency expenses.
6. Buy Now and Pay Later Feature
With a credit card payment, you are granted a grace period of up to 50 days, which allows users to pay for the expenses without any interest as long as the credit card payments are paid within the due date. Credit card shoppers use this period to manage cash flows, especially when their salary cycle does not align with expenses. And as the debit card instantly debits the payment amount, it gives no room to manage money, making the credit card a powerful tool for those individuals who plan their finances carefully.
7. More Money to spend
In a debit card, you can just spend the money you have in your bank account; on the other hand, a credit card gives you the liberty to spend more than how much you have in your account. Smart shoppers don’t abuse this limit, but they appreciate the flexibility it provides in managing high-value expenses. This is especially useful for:
- Booking travel tickets
- Making hotel reservations
- Paying for emergencies
Conclusion
In 2025, saving does not only mean getting discounts, but it is about making money work hard for you. Credit cards, when used wisely, offer superior rewards, enhanced safety, lifestyle perks, and financial flexibility. But always make sure you are using credit cards responsibly; debt traps and interest rate charges can occur if you miss payments or overspend. On the other hand, if this is used rightly, then it can be of real value for everyday purchases as well as for long-term financial planning. In 2025, debit cards will be more convenient for ATM withdrawals and linking to UPIs. They can be the best backup options for most of the shoppers, as it does not matter whether you shop for daily groceries or luxury, it is always better to swipe smart by swiping a credit card.
Written by Adithya Menon
