Are you still carrying wads of cash? Switch to a credit or debit card. A credit card has made the payment method easier than ever before. With a credit card, You just walk into a store & buy your favorite products, swipe your credit card, collect the payment receipt and walk out of the shop with the product in hand. Post covid, the usage of credit cards is massive compared to the last decade. The demand for credit cards has paved the way for many banks & NBFCs to innovate different types of credit cards like digital credit cards. Well, read on to know the difference between a credit card and a digital card and its eligibility to choose the best suit for you. 

About Digital Credit Card

Digital Credit Cards are just like your normal credit card that is available only in a virtual form. The digital credit card is also known as a Virtual Credit card. Digital cards are extended versions of your plastic cards that are designed to function only when you make online transactions. The digital credit card issuer may offer you an additional limit above your existing credit card limit or can transfer some limit of your existing credit card to your digital credit card. The card issuer will send you the digital credit card essential credentials, like credit card number, expiry date, CVV, etc. To get a better picture of the digital card, just walk through its features. 

Security:

  • Digital cards arrive with a lot of enhanced security structures compared to credit cards. You can generate and use a digital card only one time as it is valid for 24 to 48 hours. Generally, digital cards are valid for a short span. You make a single transaction using a digital credit card which will be valid for a single transaction. Post completion of that transaction,  the card gets automatically blocked. So, the chance of misusing the card is quite lesser than a credit card. 
  • Also, to enhance the card security, the virtual card is issued only to the primary cardholders and not to the secondary or add-on members. 
  • Transactions happening with the virtual cards are secured as the cardholder will get a One-Time-Password (OTP) sent to the registered mobile number or email ID mandated to access the card. Also, you can easily book a virtual credit card online and block it in case you suspect any online scam. 

Credit Card Limit:

Like credit cards, Digital Credit Cards have a particular credit card limit. You can do multiple online transactions within the specified limit.

Also Read: How Do Credit Card Companies Determine Credit Limit?

Expiry 

If your digital credit card expires, the card balance limit is transferred to your physical credit card.

Lightening speed approval 

The approval of a digital card is quick as it is available in a virtual form. You will get instant approval on these cards which also aids you to make an online transaction immediately after getting the card in your hands.

Swipe across the globe 

You can use digital credit cards conveniently and hassle-free for online transactions in both domestic and international instantly.

Different fees: 

Most digital credit cards arrive with zero joining and annual fees. A Digital card has no fees or interest if you pay the bill before the due date.

About Credit Card, 

A credit card is a convenient tool to pay for goods and services. The significant advantage of credit card benefits is getting a  period of free credit. 

Personalize your Card Limit:

Credit card limits will differ from one card to another. This is solely based on the discretion of the card issuer. If you have a high credit score, the lender will allocate you a high credit limit. 

Get a loan:

With a Credit card, you can avail of a personal loan in emergencies.

Withdraw Cash:

With a credit card, you can withdraw advance cash from ATMs and repay the amounts while settling your credit card bill. 

Discounts/Offers/Rewards:

The best part of using a credit card is the discounts and offers while purchasing a wide range of products. You can earn reward points on every swipe based on the credit card you use. 

Eligibility Criteria of a credit card

To avail of a credit card, you need to abide by the strict and specific credit card eligibility criteria. Every lender will have its own set of eligibility criteria.

If you default to a single eligibility criterion, the lender may reject your application.

  • To avail of a credit card, the applicant should be at least 18 years& above.Some lenders have a minimum age of 21 years to opt for a credit card in India. 
  • The maximum age requirement is 60 years. 
  • Both salaried & self-salaried applicants can opt for a credit card in India. 
  • If you look at the residential status, Indian citizens, residents, and non-resident Indians can apply. In some cases, the lender will offer to Indian citizens. 
  • To avail of a credit card, the applicant should have an income between Rs. 1 lakh to Rs. 3 lakh.

In the case of a Digital credit card, a  first-time job holder, or people without an existing credit history can easily get financial assistance via a digital card.

Note: The eligibility will differ from one card issuer to another. It would be best for you to check the criteria with a selected bank.

Conclusion:

After a sneak-peek into both kinds of cards, it's crystal clear that a regular credit card comes with various eligibility criteria that you have to meet. It is extremely difficult for first-time earners without a  credit history to cope with credit card eligibility. It's better to get a digital card that is more convenient. Before opting for any card, carefully look through the eligibility criteria. It is always good to maintain a healthy credit score before opting for any credit card or digital card as it enhances the chance of approval. After availing a card, ensure you pay off your dues correctly to maintain a healthy credit profile.

 

FAQs of Credit Card Eligibility Vs Digital Card Eligibility-Which is best?

1:What is my credit card limit?

When you apply for a credit card for the first time, The credit card issuer will decide on your credit limit. The lender will consider your income, existing debt level, and credit history while fixing a credit limit.

2:How safe is a digital credit card?

Virtual credit cards are safe as the details such as the card number, expiry date, etc. can be seen only online. 

3:Is it possible to place a request to block my virtual credit card online?

Yes, you can instantly block your digital credit card online.