Credit cards have been helpful in many cases when it comes to finances. For those that are unsure about what is a credit card, here’s a brief explanation. In many cases, individuals use credit cards to buy expensive products or afford products that they currently cannot. They are also very handy and can be availed through a very simple process. Typically, a credit card provides you with a credit limit up to which you can spend. Let us have a look at how credit cards can be helpful to people.
What is the Use of Credit Cards?
Usually, a credit card is used to meet expenses that cannot be met with the regular income of an individual. Usually, a credit card has a certain credit limit. The issuer of the credit card does not provide you the full amount in loan cash, instead provides it in the form of a credit limit. Once you reach your credit limit, you would have to repay your dues to gain more credit limits. If you do not repay the amount or even the minimum amount by the due date, you would be charged a penalty. In addition, credit cards offer several bonuses, rewards, and many more that can be of great benefit.
What are Virtual Credit Cards and the Need for them?
A Virtual Credit Card does not have a physical existence. It is a new type of credit card that can be used once. This Virtual Credit Card is similar to that of a typical credit card when it comes to having a card number, CVV, and expiration date. However, as it is maintained digitally, it is more convenient for individuals to use this type of credit card.
Virtual Credit Cards are more in need now compared to ever before. They can offer improved security as they cannot be misplaced like physical credit cards. You can store them in your devices which thereby increases security. In addition, you also have immediate access to Virtual Credit Cards with an option to instantly apply or instantly block them.
Benefits of Virtual Credit Cards
There are several benefits when it comes to Virtual Credit Cards. Here are 4 main benefits of Virtual Credit Cards.
- Immediate availability
A Virtual Credit Card is made immediately available to anyone who applies for one. There is no necessity to wait to get the credit card in hand.
- Improved Security
As Virtual Credit Cards have the one-time usage feature, the security of the credit card increases drastically. Moreover, as the card is virtually stored and maintained, there are lesser chances of fraud.
- Set Limit and Extend Credits
You can set spending limits on your Virtual Credit Card. This can help you develop healthier spending habits. With a Virtual Credit Card, you can extend the amount of credit based on how much more credit you need.
- No Fees or Charges
Usually, there are no processing fees or any kind of charges applicable on Virtual Credit Cards.
Virtual Credit Cards can be of great convenience and also provide improved security. You can also opt for a Virtual Credit Card if you want to easily access it, have an option to set credit limits, with an easy cancellation option.