When you hear the word credit card, what comes to mind? Chances are it’s an image of a plastic card that can be used to make purchases in stores, online, or even over the phone. While to the ones who are in the process to apply for a credit card online, or already use a credit card, would tell you about the slow and complicated process of getting hands-on their credit card.
Fortunately, with the growing demands for online credit card features and higher spending habits among consumers, several financial and tech institutions in India have come forward with an alternative to online credit cards: Digital Card. Offered by companies like LazyPay, these digital cards like the LazyCard offer credit card features without the hassle of applications and maintenance.
If you’re wondering what is a digital card, its features, and more importantly how is its application process different from getting an online credit card, keep reading!
What is a Digital Card
Digital cards are essentially electronic payment methods that allow consumers to make purchases at any time and from anywhere. As opposed to traditional online credit cards, the main difference between a digital card and a digital credit card is that the former is accessible both offline and online, while the latter is accessible exclusively through online platforms.
Benefits of a Digital Card
To understand whether digital cards are worth exploring or not let’s also look at the major benefits of these cards:
- No monthly fees - Unlike traditional online credit cards, these cards do not have monthly charges, maintenance fees, or other hidden charges.
- Rewards - LazyPay’s digital card - LazyCard is among the most popular in its category to offer the most rewards and cashback. You get ₹500 cashback on your first card transaction, and up to 5% cashback on every purchase.
- Credit Score - Every transaction and repayment you make with an online credit card impacts your credit score. Similar goes with the digital cards as well. Plus with the feature of checking credit score and transaction history conveniently, you get to keep track of any discrepancies or your own performance to calibrate it as required.
- Low-interest - Missing payment on an online credit card comes with high interest on the due amount. While it should be avoided, the same in the case of digital cards attract much lower fines. Also, interest rates on loans are comparatively lesser with the digital card.
- Apply without a strong credit history - Last but not least, you can apply for a digital card like LazyPay without having a strong credit history. This is where it sets itself apart from online credit cards in an attractive way to new earners and youngsters.
Let’s explore the process of its acquisition with respect to applying for an online credit card.
Now that you how digital cards can benefit you, it’s time to talk about the application process difference between an online credit card and a digital card.
Online Credit Card Application Process
The application process for an online credit card varies depending on the bank. However, below are typical factors in common to them:
Eligibility
- Age: You must be between 18 to 60 years
- Credit Score: You should have a good credit score in the range > 750
- Existing Debt: Depending on your due loaned amount, you’ll be given a credit limit - if at all
- Annual salary: Your employment type and salary (>Rs. 3l) decide your credit line
Documents
- Identity proof (copy of PAN, Aadhaar, passport, student id, etc.)
- Residence proof(utility bills, Driving Licence, PAN, Aadhaar, etc.)
- Latest salary slips
- Form 16
- Bank statements
If eligible and ready with all the latest documents, you can fill out the form online or offline. It takes at least 7 days for verification and processing and thereafter some more days for allowing access to your online credit card.
Several banks offer online registration for credit cards however, in most cases the applicant would be required to visit the bank at least once.
Digital Card Application Process
For digital card applications, the entire process of KYC and approval is online and paperless. Let’s see what are the steps to apply for the LazyCard.
- First off, install the LazyPay mobile app. It can be done on either iOS or Android system.
- In the app fill your personal details and verify it with an OTP they send. Then an OTP will be sent to verify your registered number. Once done, you receive the proper application form.
- In the next step, you get instant approval in principle after verification.
- Then you upload KYC and other required documents.
After all this, the team will cross-check everything about your application and approve the digital card for you!
The Takeaway
In contrast to all the hoops, one has to jump to get an online credit card, getting a digital card is much more straightforward. Take your finances into your hands and benefit from convenient credit score building with LazyCard by LazyPay today!