Credit card, also termed as ‘plastic money’ is a payment card issued to customers that enables them to pay a merchant for purchasing product(s). Credit card is also considered as an essential alternative of cash. It gives the ease of carrying, as well as paying cash, as the money does not need to be paid upfront by the user. The best option is to convert the lump sum payment through credit card into EMI (Equated Monthly Instalments), after a big-budget purchase. The increased security features give users some peace of mind since fraud related to credit cards are less frequent.
However, there are certain circumstances where payment through credit cards is not accepted. For example:
- Payment of car loans
- Payment of home loans
- Paying other Credit Card’sbills (not to consider – balance transfer option)
Therefore, in such situations, money should be paid from bank accounts. Though one might have a higher credit limit one would not be able to utilise those credit lines in these situations. To access the available credit from the credit card, transferring money from credit card to bank account is a viable option.