Are you carrying around a lot of cash? Make the switch to a credit card and debit card. Credit cards have made it easier to pay than ever. With a credit card, you go to a shop and purchase the items you want, out your credit card the receipt of payment, and leave the store with your purchase in your hands. In post-COVID transactions, credit card use has increased dramatically compared to the previous decade. The growing demand for credit card purchases has opened the way for banks and NBFCs to create various kinds of credit cards, such as virtual ones. So, continue reading to learn the distinction between credit and digital cards and the conditions to select the right one for your needs.
About Digital Credit Card
Digital Credit Cards work as regular credit cards but in a virtual format. This type of credit card can be called a Virtual Credit card. Digital cards are upgraded versions of your credit cards designed only for online transactions. The issuer of digital credit cards might offer you an extra amount over your credit card limit or transfer the limit of your credit card that you already have to your digital credit card. The card issuer will give you a digital credit card with the necessary credentials, including your credit card number, expiry date, CVV number, etc. For a clearer digital card image, stroll through its functions.
- Digital cards have many enhanced security options when compared to credit cards. It is possible to create a digital credit card only once because it’s valid for a period of 24 up to 48 hours. Digital cards are generally suitable for only a few hours. A single transaction can be made with a digital credit card, only valid for one transaction. After the transaction is completed, the card will be immediately blocked. So, the chance of fraudulently using a card is much less than a credit card.
- To further enhance the card’s security to protect the card, the virtual card is only issued to primary cardholders and not to second or add-on cardholders.
- The transactions made with virtual cards are secure since the cardholder receives a One-Time-Password (OTP) delivered to the mobile number registered or email address to gain access to your credit card. Also, you can quickly reserve a virtual credit or debit card on the internet and then block it if you suspect a scam online.
Credit Card Limit:
Like credit cards, Digital Credit Cards have specific credit card limits. It is possible to perform several online transactions within the limit.
If your credit card digitally expires, the balance limit is transferred to the physically-based credit card.
Lightening speed approval
The approval process for digital cards is fast since it’s in a virtual format. Instant approval is available for these cards, which helps you make an online purchase right after you have the card.
Swipe around the world.
Using digital credit cards quickly and with no hassles for online transactions in international and domestic markets is possible.
Most digital credit cards come with no joining or annual charges. The digital card is free of costs or expenses when you pay the invoice before the expiry date.
About Credit Card,
Credit cards are a credit card is an efficient method of paying for both goods and services. The primary benefit of credit card rewards is that you get an extended credit period.
Personalize your Limit on Credit Card:
Limits for credit cards will vary from one card to the next. It is entirely at the decision of the issuer. When you’ve got a good credit score, and the lender can give you a high credit limit on a credit card, you can take advantage of a personal loan during times of need.
With a credit or debit card, you can cash out advance at ATMs and pay the amount while paying your credit card balance.
The most significant benefit of using credit cards is the offers and discounts when you purchase various items. You can earn reward points for every swipe that you make based on the card that you have.
Eligibility Criteria for the credit card
To be eligible for credit card benefits, it is necessary to comply with the strict and precise requirements for credit card criteria. Each lender will have their eligibility requirements.
If you do not meet one eligibility requirement, the lender denies the application.
- The person applying for credit must be 18 or above to get credit cards. Some lenders require a minimum age of 21 to issue a credit card in India.
- The maximum age for eligibility is 60 years.
- Both self-salaried and salaried candidates can apply to get credit cards in India.
- When you consider the residency status, Indian citizens, residents, and non-resident Indians are eligible to apply. In some instances, the lender may offer an opportunity to Indian citizens.
- To be eligible for credit cards, applicants must have an income of between the amount of Rs. 1 lakh and the amount of Rs. 3 lakh.
If you have the case of a digital credit card, a new job holder, or someone with no credit score can receive financial aid through a digital credit card.
Notice: The eligibility will vary from one issuer to the next. It is best to verify the eligibility requirements with your chosen bank.
If you take a look at the different types of cards available it is evident that a credit card has a variety of requirements for eligibility that you need to be able to meet. It’s incredibly difficult for those who are just starting out with having a credit history to comply with the requirements for credit card eligibility. It is better to choose an electronic card which will be more practical. Before you decide to use any card, make sure you read the eligibility requirements. It is essential to keep an solid credit rating prior to deciding on any type of credit or digital card since it increases the likelihood of being approved. When you have a credit card, make sure you pay your debts on time to keep a clean credit score.