With an immense surge in technology and digital payment modes, one should know a safer and more feasible way. Credit cards and debit cards enable you to buy or pay for multiple items with a single swipe. While you can go cashless with both, the idea of safety during the use is a valid concern. More so, given the prevalence of card fraud and identity theft in India today. Therefore, the essential distinction between a credit card and a debit card is safety.
Here, you will see why just getting the best credit card in India is a better and safer proposition than using a debit card or cash for paying off your purchases. It is because that any fraudulent transaction made with your debit card results in funds being deducted directly from your bank account. Credit cards also do not provide anti-fraud protection.
While using a credit card, you have to build your credit history, protect your account from unauthorized transactions, get a few necessary consumer protections, and get rewards. There are many more reasons you should get the best credit card in India from a leading lender. The following are some benefits of using a credit card as a safer means of payment over others:
- Your Credit Limit is Not Made Up of Your Own Money
A debit card is always linked to a savings or a checking account. As a result, money is deducted from your bank account for each transaction made with this card. Suppose a hacker or a crook uses your card; not only will your account be depleted of its existing funds, but your account safety will also get compromised.
In that case, however, you will have to wait several weeks for the bank or lender to complete its investigation and credit your account with the money, which may or may not happen. In contrast, with a credit card, the issuer grants you a limit of the credit card based on your creditworthiness and income, which you can use to fund any financial challenge, wedding, travel, and more. Resultantly, you don’t have to worry about running out of money at any point.
- You are Safe from Fraud and Theft
It is possible that your debit card can get stolen or that your information can get hacked at some point. In such cases, your only option is to notify the bank and have your card blocked. They may, however, credit the amount that was used without your knowledge or consent.
If you use your debit card frequently to pay for utilities, rent, tuition, or groceries, you wouldn’t be able to transact for some time till your theft issue is resolved. While most banks and debit card providers offer minimum essential fraud protection, you may not receive your money immediately, especially if a lengthy investigation is required.
While, on the other hand, a credit card provides fraud and theft protection. It means that if you report a fraudulent transaction done on your credit card within the specified time frame, the issuer immediately credits the amount. Thus, the money in your bank account is unaffected until you clear your statement.
In addition, if someone steals your card number and incurs fraudulent charges, you can report them to the card issuer, and you won’t have to pay them — the card will be frozen — while the fraud is investigated. As a result, your liability is reduced.
- For Improved Purchase and Travel Insurance
Many credit cards provide specific purchase and travel protections according to the credit card limit. For example, a company offers comprehensive coverage over a credit card, such as trip delay insurance which reimburses you up to $300 per person for hotel, clothing, food, and toiletries if your flight or other travel is delayed for 12 hours or overnight.
Also, a credit card allows you to request a charge-back if you have a dispute with a merchant. The credit card company will begin the investigation when you file a charge. You don’t have to pay for the disputed amount until the investigation is concluded.
Yet another amazing feature a credit card offers is purchase protection. If the item you purchased on your credit card is damaged, lost, stolen, or rendered unusable within 120 days of purchase, you are covered under purchase protection.
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The card also includes extended warranty protection, which provides another year of cover on purchases with a manufacturer’s warranty of a maximum of three years. On the other hand, debit cards rarely offer comparable safeguards, so you’re better off using a credit card for significant purchases and travel.
In Conclusion, just buying the best credit card in India is all you need for consumer protection over any other forms of payment as long as you use them responsibly. However, you should know that the key is to use your credit card as if it were a debit card. Apart from the above top three reasons, using a credit card offers the chance to build your credit profile and the opportunity to earn valuable rewards.