Credit cards have become a standard addition to most wallets in India. Rightly so, as it grants instant access to funds, easy EMI conversions, reward programs, and more. Also, these are globally accepted cards, and you enjoy a lot of financial flexibility. You can use them to make payments across the globe, without any worries.
The list of advantages of credit cards does not end here. Today, you can use a credit card online, which translates to effortless digital payments. Read on to know how credit cards make digital transactions easier and simpler.
What is a Credit Card?
A credit card is a payment card that allows you to make online and offline payments, up to the assigned credit limit. Lenders assign you a credit limit, which is the maximum amount you can spend using your credit card.
You can apply for a credit card once you meet the required eligibility criteria set by the issuer. After you apply, card issuers evaluate your credit score, credit history, income, employment and various other factors. After assessing your financial standing thoroughly, they decide whether or not you qualify for a credit card and fix your credit card limit.
How Credit Cards Make Digital Transactions Simpler
Now that you know what is a credit card, here are some ways how they make your digital payments convenient and simple.
1. Helps Initiate Quick and Convenient Transactions
A credit card offers a straightforward method to make payments online. Almost all retailers accept these cards, with some offering special deals to add more value. These cards offer an easier way of making payments when compared to traditional modes.
2. Helps Execute Payments Through EMIs
Having a credit card allows you to complete purchases affordably by eliminating the need for a hefty one-time payment. You get the flexibility of converting your credit card bill into affordable equated monthly instalments or EMIs.
This way, you can spread the total bill amount over a longer repayment window, helping you manage your payments hassle-free. So, there is no unnecessary financial strain to clear your dues immediately. However, make sure to clear your credit card dues within the stipulated timeline to avoid penalties.
3. Helps Set Up the Auto-Pay Option for Recurring Expenses
Apart from one-time payments, credit cards also help you manage your recurring payments efficiently. You can set the auto-debit or auto-pay facility and pay your recurring utility bills like gas, phone, internet, or electricity bills automatically. Some service providers also offer such provisions on your smartphones, and these are only accessible with a credit card.
This facility eliminates the risk of missing your payment deadlines, which can lead to disconnection of services and penalty charges.
4. Helps Execute One-click Payments
You can opt for one-click payments with your credit card to make purchases effortlessly with just a single click. All you need to do is save your credit card information on apps or websites.
You can then make online purchases or pay your bills by simply selecting your credit card as the payment mode. Once you click on the saved credit card, you can easily complete your payment after authorising it.
However, you must thoroughly check the authenticity of the app or the website before saving your credit card information to avoid any fraud. Save your credit card information only on trusted websites and apps.
5. Helps Make Contactless Payments Easily
You can make contactless payments through your credit card by linking your card to digital wallets. By linking your card to digital wallets like Paytm, BHIM, etc., you can pay for any product or service within seconds.
You can make payments through unique IDs or by scanning QR codes and choosing your credit card as the payment mode. This not only allows you to initiate transactions but also adds an additional layer of security to your transactions.
This is because you can securely store your credit card details in your digital wallet.
6. Helps Enjoy Benefits Through Tie-Ups with Brands
Nowadays, many financial institutions are collaborating with companies and service providers to offer co-branded credit cards. These credit cards come with numerous benefits and rewards from both the financial institution and the partnering company or service provider.
Various hotel chains, clothing brands, airlines, retailers, etc., are partnering with these co-branded credit cards. You can benefit from concierge services, airport lounge access, reward points, special deals and a variety of other benefits.
Assess your spending habits and choose a co-branded credit card to get the most out of your credit card.
As you can see, with a credit card, online and offline transactions become much easier, and you get numerous additional benefits. However, like any other financial tool, it is essential to use your credit card wisely.
Try to keep your credit utilisation ratio below 30% and avoid missing payments. Following these simple measures will help you boost your creditworthiness, avoid debt traps, and steer clear of penalty charges. This way, you can use your credit card hassle free to meet all your financial requirements.