How are cards issued by Fintech companies different from regular credit cards?

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While you might be getting a deluge of phone calls from bank reps to buy a new credit card, there’s a new kid on the block, and that’s cards issued by fintech companies.

Unlike regular credit cards, they are not issued by commercial banks. Some of these maps include the Uni map and the Slice map. Although some NBFCs also issue their credit cards, they usually partner with a bank, for example, Bajaj Finserve issues its super card in conjunction with RBL Bank.

In fact, most of these virtual cards are not typical credit cards. What they do is offer a line of credit. They give a virtual card to use this line of credit. After a few days, one also receives a physical card at an address mentioned in the form.

Although these cards can be applied by anyone without a credit score, this does not mean that anyone with a bad CIBIL score can also easily obtain a fintech card.

Card Features

Before explaining the characteristics of these cards, let’s return to the concept of an ordinary credit card. One can use a credit card to make a purchase or pay a bill after which the cardholder has 45 days to make the payment.

On the other hand, the Uni card allows you to pay one-third payment, which means you can pay one-third of what you have spent while the rest can be spent in two equal installments without having to pay a charge. delay.

The Slice card also offers this option, but it also gives you an option for six, nine and 12 months. The bill payment option is only available for three days to Slice customers and one cannot make a bill payment even before the due date. In the case of the Uni card, one can make the payment within 10 days.

At the same time, Bajaj Finserv RBL Super Card enables cardholders to convert purchases from 2,500+ in easy NDEs, according to the BajajFinserv website. But unlike other fintech credit cards, this one is more prone to a bank credit card which requires an applicant to have a credit score above 750, must be in regular employment.

far from the crowd

Going back to Uni and Slice: they’re not typical credit cards, so you can’t add them to apps like Cred, a credit card bill payment platform that lets members pay their credit card bills on time.

And you can’t use them to make international transactions or to make cash withdrawals, according to Bekifaayati, a financial services company.

To be able to get one of these cards, you just need to download the app and follow the steps. In some time you will be able to get the virtual card. The virtual card is sent immediately while the physical card is only received after a few days.

These cards, like other credit cards, offer cash back. The Uni card offers 1% cash back and a slice between 1 and 2%. Slice even offers additional discounts on certain services, including uber, Zomato and Amazon, Bekifaayati adds.

Stay safe

However, card users should be aware that these cards do not offer you typical credit card features such as cash pickup and international payments.

“You don’t get cash withdrawal, international payments and reward points, loyalty points, which is a major downside of these cards,” says Quora user Suleman Elahi.

He adds: “Anything you spend online/offline with Slice/Uni cards shows up as a consumer durable loan, ie an unsecured personal loan, in your credit history. And a single missed payment will seriously harm CIBIL, which is not usually the case with credit cards.”

Another use Ravi Ranjan says: “These are BNPL cards. So you will see a loan account entry in your CIBIL report. Entry will not come from Slice/Uni but from the financial partner they have linked up with.”

It is therefore important that any potential user exercise caution and do thorough research before applying for one of these fintech cards that offer a line of credit to customers with no credit history.

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