Today virtual payment systems and online money transfer instruments are widely used across India. This growing trend of using digital money transactions has made way for digital or online credit cards in the changing economic system. Many banking and non-banking authorities have launched virtual credit cards to replace traditional ones.
If you are curious about what a digital card is or its advantages, keep reading. Here we will discuss the top 6 advantages of virtual credit cards and their definition.
Before we learn about the advantages of using online or virtual credit cards, let's discuss what it is. First, it will help you understand the concept of digital cards better. An online or digital credit card is the same as an ordinary credit card that you carry in your purse/wallet but comes in virtual form.
In other words, virtual credit cards provide the same facilities as physical credit cards, but you can carry them digitally. LazyCard by the new-generation finance institute LazyPay is one of the fine examples of virtual credit cards.
Online or virtual credit cards are an alternative to traditional ones. But unlike credit cards, digital cards offer more flexibility and benefit. And here is a list of advantages you can get when you use virtual credit cards.
● Easy application
The application process is the biggest pro of using a virtual credit card. Applying for a physical credit card is hectic and time-consuming. Also, you need a good credit score and history, along with proof of regular income, to apply for a credit card from any bank or non-banking financial institute. In addition, you need to physically visit the bank or financial institute to apply for the card.
But when you opt for a virtual credit card, you can get a quick and easy application facility which is 100% online and paperless. You must visit the official site, use the official app, and apply digitally. Also, you do not need to worry about your credit score or proof of regular income when you apply for a virtual card. The easy application makes it more accessible than traditional credit cards.
● Effects on credit score
The effect on your credit score is also a significant advantage of virtual credit cards. A credit score is a three-digit score provided by CIBIL that indicates your creditworthiness. Credit score also plays a vital role in your loan applications, such as personal loans, house loans, education loans etc. And using credit cards helps improve credit scores, but many people still need help to get a credit card due to the complex application procedure.
But when you have a virtual credit card, it helps to improve your credit score, like credit cards, and anyone can quickly get it.
● No maintenance charges
The worst part of having a regular credit card is too many maintenance charges. Most credit cards come with an exceeding fee, yearly maintenance fee, GST charges, surcharges and many more. And if you have a credit card, you already know the headache.
But online credit cards offer zero maintenance and additional charges. Also, they ensure transparency, and you need not worry about hidden charges.
● Higher security and expense tracking
Credit cards offer easy financial transactions for your purchase, bill payments and much more. But credit card transactions often include security threats. Also, tracking your expenses is quite tricky with credit cards. But if you use a digital card, you can avail of more robust security with an expanse tracking facility. In addition, card providers like LazyPay offer cross-checking facility for every transaction, and you can even track your every expense with the digital credit card provider's digital app.
● Lower repayment interest rate
Credit cards come with monthly or quarterly bill payments. And you need to pay the bills within 2-3 days before the month ends. Also, if you delay your payment, you will face a significant penalty on the due amount.
When you use digital credit cards, you need to make monthly payments, and even if you miss your due date, you have to pay minimal interest on your due amount.
An online credit card brings multiple benefits and works as an effective alternative to a traditional credit card. And here, we have shared some essential advantages of using digital credit cards.
LazyPay Credit Card Launched | Life Time Free + Unlimited Cashback