Credit card vs credit card: which is better and why?

Line of credit cards can not only be used to withdraw money from any ATM machine, but can also be swiped at any point of sale terminal, make purchases at any location online merchant or make instant transfers to the Paytm wallet.

Credit card vs line of credit card: Getting money from banks and other financial institutions has become easy these days for people with good credit scores. Many borrowing options to meet emergency needs are available now, including credit cards and personal loans from banks. In addition, several financial technology companies offer digital loans based on credit score. There is also a new line of credit card option that not many people are aware of. Well, the credit card is basically a card that allows employees and the self-employed to qualify for an instant personal loan.

Speaking to FE Online, Tushar Aggarwal – Founder and CEO of Stashfin – which is a financial technology company offering credit cards, explained the difference between line of credit and credit card and how the Stashfin credit card helps users.

Aggarwal said that StashFin credit cards not only guarantee internet users access to personal loans up to Rs 5 lakh, but also help respective users to load funds within 90 seconds. Line of credit cards can not only be used to withdraw money from any ATM machine, but can also be swiped at any point of sale terminal, make purchases at any location online merchant or make instant transfers to the Paytm wallet. Easy online application, quick processing time, and immediate funds transfer make credit cards a smart choice, he said.

What is the eligibility to get a line of credit card?

Indian citizens, over the age of 18, with proof of current employment and monthly income of Rs 15,000 or more, a bank account and valid ID and address can easily opt for a debit card. credit. In the case of self-employed workers, IT declarations for the past two years are required. One of the most important criteria that makes self-employed or salaried workers eligible for line of credit cards is that one must also have access to net banking on the employee’s bank account to ensure fast processing and instant approval on the loan amount applied respectively. People with a higher credit score easily receive a loan compared to those with a lower credit score.

Personal loans or instant lines of credit offered to users range from Rs 500 to Rs 500,000 with a repayment term of between 3 months and 36 months.

Line of Credit Cards vs Credit Cards: Which is Better and Why?

According to Aggarwal, one of the unique features of the StashFin credit card is that it gives users the ability to change the price of the loan as they build a repayment history.

In contrast, credit card interest rates are fixed for each charge.

Employees and the self-employed (with a minimum monthly income of INR 15,000) who opt for a credit card can withdraw emergency money from any ATM, swipe on any PoS terminal or perform purchases on any online merchant site. Compared to a credit card, line of credit card users can repay the amount by benefiting from the extended moratorium period on IMEs.

The added benefit for internet users is that no interest is charged on unused credit amounts. As you continue to pay IMEs, the principal amount is added to the line of credit, allowing you to load and use more money. In the rapid development of smartphone users, digital access and a shift towards consumerism have helped fuel the growth of digital lending.

What is the difference between the Stashfin credit card and the credit card?

Compared to credit cards and personal loans where there are many hidden fees, line of credit cards provide the borrower with the ability to set automatic debit instructions for free so that payments can be automatically deducted from. his account without missing a payment by mistake. In case of non-payment, they have to pay penalty fees and late fees. There are no annual fees, escrow fees, and foreclosure fees that they have to pay on the credit line card.

Aggarwal said that the StashFin credit card offers a number of features that are not available in credit cards. Credit card companies in India do not offer the option to temporarily block the card and permanently block the card if there is a claim. Replacement cards usually take a few weeks to arrive and almost always pay off. In contrast, StashFin credit card holders can block or unblock the card without paying a fee or calling customer service. This is a unique feature of the line of credit card.

The table below summarizes the other key differences between credit card and credit card:

How do I get a Stashfin credit card and use the card?

To apply for a credit card, one has to go to StashFin’s web or mobile platforms to fill out a simple application form with profile details, online banking details and upload KYC documents i.e. PAN card, Aadhar card and bank statement. A final verification process is followed by the Stashfin team to ensure prompt approval when confirming a credit card to respective applicants within 24 hours.

Upon receipt of the credit card, the applicant must register the card by clicking on “Register my card” through the Stashfin app and add the card number. Internet users residing in India only need to log into the OTP and the credit card is automatically registered. Once the line of credit is activated, funds can be loaded up to the credit limit on the card as needed, Aggarwal said.

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