We all use UPI Unified Payments Interface i.e. UPI. In the last few years, transactions through UPI have broken all records. Now the facility to link credit card with UPI is being provided. That means, even if there is no money in your account, you can make payment through credit card. In such a situation, is linking credit card with UPI a profitable or loss-making deal? If you are confused about this then we are answering all your questions. After this you will be able to decide for yourself whether credit card should be linked to UPI or not.

Benefits of linking credit card to UPI

Linking the credit card with UPI allows you to use the credit card even for small transactions. Currently, the number of establishments accepting credit cards is limited. Linking a credit card with UPI lets you earn reward points on all transactions, irrespective of their value. A significant advantage over debit cards, which typically don’t offer rewards. Credit cards generally come with higher credit limits than debit cards. As a result, individuals with credit cards linked to UPI can make larger purchases than those with debit cards.

Disadvantages of linking credit card to UPI now

Linking credit cards with UPI may increase the risk of overspending. This is due to the nature of credit cards, which allow users to spend funds they do not currently have, potentially charging interest on their purchases. Possibility of getting trapped in debt. Many credit cards offer attractive rewards like cashback or travel points, which can increase the temptation to use the credit card for UPI transactions. However, in this process, sometimes you may get trapped in the trap of debt. Credit cards typically come with high interest rates, ranging from 18 percent to 48 percent per year. Failure to pay the credit card bill in full every month may result in users having to pay heavy interest.