While you may be getting a flood of phone calls from bank representatives to buy a new credit card, there is a new kid on the block, i.e. cards issued by fintech companies.
Unlike normal credit cards, they are not issued by commercial banks. Some of these cards include the Uni card and the Slice card. Although some NBFCs also issue their own credit cards, they usually join hands with the bank, for example, Bajaj Finserv issues its Super Card in association with RBL Bank.
In fact, most of these virtual cards are not specific credit cards. What they do is offer a line of credit. They give out a virtual card to use that credit line. After a few days, a physical card is also delivered at the address mentioned in the form.
While these cards can be applied by anyone without a credit score, it does not mean that anyone with a poor CIBIL score can easily buy a fintech card.
Card Features
Before explaining the features of these cards, let’s revisit the concept behind a regular credit card. One can use the credit card to make purchases or pay bills after which the card holder gets 45 days to make the payment.
On the other hand, Uni card enables you to pay one-third which means you can pay one-third of what you spend while the remaining can be spent in two equal installments without paying any late payment charges. Is.
Slice card also offers this option but it also gives you options for six, nine and 12 months. Slice customers are given the option of bill payment only for three days and one cannot make the bill payment before the due date. In case of Uni card, one can make the payment within 10 days.
Additionally, the Bajaj Finserv RBL Super Card enables cardholders to convert their purchases 2,500 and above in easy EMIs as per the Bajaj Finserv website. But unlike other fintech credit cards, this one leans more towards bank credit cards, which require the applicant to have a credit score above 750, to be in a regular employment.
away from the crowd
Coming back to Uni and Slice: They’re not specific credit cards, so you can’t add them to an app like Credit, a credit card bill payment platform that enables members to clear their credit card bills in a timely manner.
According to Benefit, a financial services company, you can’t use them to conduct international transactions or make cash withdrawals.
To be able to buy one of these cards, all you need to do is download the app and just follow the steps. In no time you will get the virtual card. The virtual card is sent instantly while the physical one is received only after a few days.
These cards, like other credit cards, offer cashback. The Uni card offers one percent cashback, and offers a deduction of anywhere between 1-2 percent. Affordable adds that Slice also offers additional discounts on certain services including uber, Zomato and Amazon.
exercise caution
However, card users should be aware of the fact that these cards do not provide you with the typical features of a credit card such as cash withdrawal and international payments.
“You don’t get cash withdrawals, international payments and reward points, loyalty points, which is a major drawback of these cards,” says Suleiman Ilahi, a user on Quora.
He says, “Everything you spend online/offline using the Slice/Uni card shows up in your credit history as a consumer durable loan aka unsecured personal loan. And just a missed payment Will harm CIBIL in a very bad way, which is not usually the case with credit cards.”
Another experiment Ravi Ranjan says, “These are BNPL cards. So, you will see a loan account entry in your CIBIL report. Entry will not be from Slice/Uni but from the financing partner with whom they have tied up.”
Therefore, it is important for any potential user to take due due diligence and conduct a thorough research before applying for one of these fintech cards that offer lines of credit to customers without a credit score history.
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