Pros and Cons of Paying Credit Card Bills through Third Party Mobile Apps

With Banking become more online there is an app for each and everything right from opening an account to paying credit card bills. Nowadays there are plenty of mobile apps seeking users’ attention with exciting offers, cashback rewards, credit points to pay their credit card bills using different platforms.

One thing that rises in your mind is should you trust these apps for storing credit card details. Is it safe to link your savings bank account to complete the bank payment? Let us dive deep into the article and understand the mode of paying credit card bills via apps.

Options for Paying Credit Card Bills

CRED is an app that saves your credit card details on its platform. You can pay credit card bills through net banking, UPI, or auto-pay feature provided. However, there is a limitation that people having a credit score higher than 750 can join the CRED Community. If you don’t meet the minimum criteria you will be put on a waitlist and given advice on how to improve your credit score.

Whenever you make a credit card bill payment using the app you will be rewarded with CRED Coins. You will get one coin for each rupee paid off on the bills and you can use them to collect various rewards available on the platform. The rewards include discounts while shopping from partnered merchants promoting their goods and services on the app.

Read More: List of 10 Best Credit Cards In India

Pros of using Third-Party Mobile Apps

CRED:

You can redeem the CRED Coins for actual cash through the Kill the Bill Section which is usually a cashback offer. The cashback will be automatically transferred to the respective credit card from which you have redeemed the CRED Coins. For redeeming 1000 CRED Coins you can get a cashback of Rs. 5 to Rs. 10 on your card.

You can get alerts on suspicious activities, sounds you early about charges or unexpected fees. App manages to pull all the information from your Linkedin Bank Account or Mail ID as you would have given consent while registering.

Paytm:

Paytm App provides 1000 Paytm First Points on making credit card bill payments of Rs. 2500 or above. You can redeem the points for cash back and offers from Partner Merchants. You can save the credit card details for making the bill payments through the app.

Phonepe:

On Phonepe you need not save the credit card details like other apps to make bill payments. You need to save Provider(Visa, MasterCard, American Express, Diners, and Rupay) and enter the card details and make a payment through UPI. You can have rewards and cashback schemes based on usage.

Cons of using Third-Party Mobile Apps

The bottom line or the downside of the Apps is the data security and you end up your data with them. There is a possibility of hack and be sure to check what information is collected before you signup. For instance, CRED seeks to access your email to view your email messages and analyze your behavior.

Do keep track of the Money Control’s Take and signup after understanding the Payment Risks. You are giving your financial data to a third party to access mobile messages and e-mails. Don’t just overspend on the products that are useless for you. Stay conscious while redeeming cashback offers or coins while shopping from partner merchants.

Conclusion

We wish the data shed regarding the Pros and Cons of using Third-Party Mobile Apps has enlightened you. If you feel any information is missing or needs to be added feel free to reach us and we will add it at the moment. Share the article with your near and dear ones and spread the word on this. Bookmark our site Versionweekly.com for the latest updates on the Security Threats of using Third-Party Apps.

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