Credit Card vs Buy Now Pay Later: What You Need to Know
With upcoming Independence Day sales on platforms like Amazon and Flipkart, many attractive deals are on the horizon. These include discounts, cashback, and Buy Now Pay Later (BNPL) options.
Similarities Between Credit Cards and BNPL
- Both options give you time to make payments.
- Each method has a set credit limit you can’t exceed.
- Late payments can incur penalties with both options.
Unique Features of Credit Cards
- Reward Points: Earn points on every purchase.
- Cashback: Some credit cards offer cashback deals.
- Payment Period: Typically, you get 30-50 days to pay off your balance.
- No-Cost EMI: Many credit cards offer no-cost EMI options.
Unique Features of Buy Now Pay Later
- Installment Payments: Split your purchase into a few installments, often without additional charges.
- No Impact on Credit Limit: Doesn’t affect your credit card limit.
Which Option Should You Choose?
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Credit Card Benefits: Use it for online shopping to earn cashback, reward points, and access no-cost EMI options.
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BNPL as an Alternative: If you don’t have a credit card or have maxed out your credit limit, BNPL is a good alternative.