A credit card is a financial tool offered by various financial organisations which allows card holders to make monetary transactions against a pre-set line of credit. A cardholder can utilise it to pay for goods and services within that credit limit. Be it for purchasing a home appliance, accessories such as an expensive watch, or fund an exotic holiday; it can fulfil all such requirements.
Both credit and debit cards are part of a growing number of individuals’ daily routine. A fast digitising and modernising economy will require you to use such cards. They can make your life easier and better.
However, these cards are vitally different from each other and you should utilise them differently too for the best possible financial management.
Difference between the two cards
A debit card allows you to withdraw a certain amount of money from your existing savings/salary accounts. The main difference between credit card and debit card is in the funds utilised through them.
When you use a debit card for your purchase, the money is withdrawn directly from your existing account. However, when the same purchase is made with a credit card, the expense is charged from the line of credit. The cardholder is liable to repay the same.
How can a credit card make your life easier?
Credit cards are often considered a much more flexible and multi-purpose financial tool than debit cards.
They can help an individual meet financial requirements even without the availability of the necessary funds. Top financial institutions provide cards which come with additional features to further help you meet numerous such requirements with timely availability of credit.
- Cash withdrawals even without debit cards –
There are instances when you will have to swipe your credit cards at an ATM to withdraw cash. Financial institutions allow you to withdraw money from your unutilised credit limit. The amount is later repaid along with a certain amount of interest. Renowned financial institution, Bajaj Finserv, also offers an interest-free period of up to 50 days within which you can repay the amount without paying any additional charges.
In the case of debit cards, only the amount that is available in your account can be withdrawn.
- A loan from your credit cards provider –
Like stated before, there are times when you will require emergency funds. Credit cards provide security without any paperwork. There is a pre-approved limit. When you require, you can convert this pre-approved limit to your required loan amount and use accordingly.
- Waivers cash backs on fuels, air miles and more –
Financial institutions entice their customers with various loyalty programs and complimentary services. For example, you can earn reward points for every Rs. 100 spent on online and ordinary transactions.
Lenders also provide various other perks like milestone bonuses where you are offered a certain number of points when you reach certain spending milestone. Some providers even offer a welcome gift of such reward points to every new user.
You can also benefit from various add-on benefits such as complimentary airport lounge access for up to 8 times a year and complimentary movie tickets from specified providers.
- Easy EMIs against lump sum purchases –
Another popular feature of credit cards is the ability to transfer large purchases into easy EMIs. You can pay for expensive goods like TV, refrigerator, etc. and divide the total amount into EMIs.
The Bajaj Finserv RBL Bank SuperCard comes with a feature where you can repay a credit in 3 easy EMIs. There is a nominal processing fee of 2.5%, which makes the EMIs affordable and competitive. Thus, you don’t have to use your savings while repaying your loan. It also provides other features such as –
- It provides robust security. Features like “In-hand security” and “Zero fraud liability cover” to mitigate cyber-crime threats. In-hand security gives you better control of your card if you consider safety. You can also control your card’s usage with the RBL MyCard application. It allows you to monitor the transactions, check remaining credit limit, card statement, and several other important details online.
- The application process of Bajaj Finserv RBL Bank SuperCard is quick and hassle-free. You only have to meet some easy-to-meet eligibility criteria and submit minimum documents while applying for a credit card.
Bajaj Finserv also provides pre-approved offers on credit cards, home loans, personal loans, business loans, and several other financial products. Not only does this offer make the process of availing financing simple, but it also help you save time. You only have to share some essential details to check your pre-approved offer.
Everyone desires to live a smooth, hassle-free life. Wisely managing your expenses helps you to live your life wishfully in bliss. With regular credit cards, you can handle all your costs in a well organised and competent way. Choose the credit card that fits all your requirements and helps you live your life better.