Which is better credit card and Pay later?

Which is better in both credit card or pay later, know from whom to buy a profitable deal. There is a facility of three equal interest-free installments on the pay later. Thereafter, a carry forward charge of 3-4 percent on the balance amount is levied from the billing circle.


  • You can use credit or ‘pay later’ for online or offline purchases
  • Credit limit on ‘Pay Later’ card starts from Rs 2,000
  • Pay Later card offers flat 1 percent cashback

New Delhi. E-commerce companies are providing the option of paying later to attract their consumers. At the same time, there is an interest-free period of 45 days on offline or online purchases with credit cards. In such a situation, the question may arise in your mind that interest-free repayment facility is available in both the modes, then what is the need of two different cards? So let us compare these two options so that you can make a wise decision and choose the right one. 

Interest math on credit card and pay later 

There is a facility of three equal interest free installments on the pay later. Thereafter, a carry forward charge of 3-4 per cent on the balance amount is levied from the billing circle when the minimum payment is due. According to banking experts, the interest rate on the pay later may range from 16% to 40% per annum. At the same time, on credit cards also you have to pay interest at the rate of 36-42% annually. 

reward point 

The benefits and offers offered on credit cards are generally higher than those available on pay later cards. Credit cards offer rewards on every transaction, which keep on accumulating and after accumulating a certain number of points, are given in the form of air miles, gift vouchers, hotel bookings, etc. At the same time, the Pay Later card offers a flat 1 percent cashback. Credit card issuers have specific pre-defined eligibility criteria. In this way, consumers with no credit history or earning very little can get a ‘pay later’ card. However, getting a credit card depends on the individual’s creditworthiness, repayment behavior and stability of income.

freedom to use everywhere 

Credit cards can be used for transactions that do not offer pay later when you are abroad. On ‘Pay Later’ cards, the credit limit starts from Rs 2,000 and can go up to a maximum of Rs 10 lakh, while on credit cards the credit limit usually starts from Rs 20,000. There is no upper limit on the credit card limit as the lender can increase your credit limit according to the frequency of your usage, income and spending.

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