A lot of people in the FIRE community would tell you to get rid of credit card. Hell, even I wrote a post on how you should use cash instead of credit card to save more. But, let me be very clear, I use credit card and maximise my return. The key is to not fall for impulse purchases. Remember, at the end you are spending your hard earned money. If you follow the philosophy of buy what you need, not what you want then credit card can be a huge asset. Some of the credit cards have amazing rewards that can be used for a lot of things like funding your travel.
Today, I shall talk about a new app in India that can help you earn as you pay your credit card bills. CRED is a new app launched by the Freecharge co-founder Kunal Shah. You can manage multiple credit cards, pay their bills and earn points in return.
What you do and what you get?
In short, using the CRED app you pay your credit card bills and in exchange you get “cred coins”. You get 1 cred coin for every Rupee that you pay. You can then redeem these coins from a wide set of offerings. Some of the brands that have offerings on CRED app are ixigo, Airbnb, BookMyShow, cure.fit. The rewards are good too, with 750 cred coins can get a cake and with 2,00,000 cred coins you can get a free flight ticket. The app is currently available to users that have a good credit score.
The CRED app supports a lot of MasterCard, VISA, American Express and Diners Club cards.
How the app works?
- Apply for a membership – Download the app from Play store or App store. Add the phone number that is linked to your credit card(s). CRED will send you an OTP to your phone to verify. Log on to CRED with your name and number and apply to be a member.
- Verify your cards – The app will ask you to verify your cards as the next step. CRED will add all the credit cards linked to your mobile number. But you still have to verify them by filling in the missing digits. CRED app will then credit your account with Rs. 1 to confirm.
- Pay your bills using the app – Pay your credit card bills and earn equal cred coins. Also, as soon as you are verified you get cred coins equal to your credit score. For example, if your credit score is 750, you get 750 cred coins.
- Claim rewards – For every rupee you pay you earn a cred coin. Use the coin to claim rewards.
Earn even more from credit card
A lot of times there are hidden fees in the credit card which we overlook. CRED also provides two additional options – Card Protect and Smart Statements – to analyse your card statement and discover hidden fees and charges. Both these options require you to approve CRED to read your credit card statements from Gmail.
Should you use it?
A few people have argued issue regarding privacy especially reading the email. I would say that is a totally optional feature. If you don’t want to benefit to detect hidden fee, you don’t have to turn it on. Also, the app does not ask for your credit card’s CVC/CVV code or any other OTP. Hence, it is very unlikely that your credit card can be misused. If at all there is a data leak, the only thing that gets exposed is your credit card number. Not sure if that can be used for anything with the CVC/ CVV code or an OTP. Hence, I would say definitely go for CRED app. What better way to get paid for paying bills on time.