We’ve all heard fearful stories about credit card debt – hard-hearted recovery agents, inflated due bills, and the credit card interest trap. Yet, credit cards are booming and gain much attention, with each Indian owning multiple credit cards. Let’s dive deeper in to the smarter way of using credit cards.

It’s simple, easy and rewarding! There is a mastery to managing credit cards and payments, and if done right manner, it can reap financial benefits, you can manage expenses efficiently, and be stress-free from the fear of debt. CRED makes credit cards simple and rewarding, swapping the fear of using credit cards with exciting rewards. In simple words, CRED operates an app that rewards their customers for just paying their credit card bills on time using CRED and provides them with a range of extra free services like credit from their side and a premium range of products, offer and collaborations from top notch brands. The two-year-old company, CRED has become the youngest Indian based start-up to be valued at $2 billion or even more. The Bengaluru based company has raised $215 million which raised the value of the Indian start-up to $2.2 billion.


Let’s talk about the offers and services from CRED in extra detail.

CRED as an app saves all your credit card related data once you register on the app. You can pay credit card bills using various payment modes like net banking, UPI and the auto pay feature in the app. Consumers with credit scores higher than 750 can only register to join the CRED community and make their payments. In case a user fails to meet the required credit score, CRED provides you with a list of methods to use your credit card to improve your credit score. When you make credit card bill payments using the CRED app, you will be rewarded with CRED coins for every rupee paid off on the bill and you can use these CRED coins to redeem various rewards and offers available on the app. These rewards and offers are discount coupons when shopping from a partnered merchants and lucky draws to huge gifts. You can also redeem CRED coins for real cash in ‘Kill the Bill’ which is a cash back offer from CRED. The cash back will be transferred to the credit card, for which you have redeemed the CRED coins. Ideally, if redeem 1000 CRED coins, you will be entitled to receive a cashback of Rs 5 to Rs 10.

PayTM offers up to 1000 PayTM First Points for paying your credit card bills worth Rs 2,500 or more, using PayTM. You can use these points in the PayTM app to play various games. If using PhonePe, you will have to choose the appropriate the provider of the service like Visa, MasterCard, American Express, Rupay etc. which is the issuing bank card.

CRED examines your spending patterns, alerts you for suspicious activity on your credit card, notifies you about charges or unexpected expenses on your credit card bills, sends messages about due dates on WhatsApp. The app manages to extract all the information of your linked bank account and email address, as you are bound to give your consent while signing up.

Although CRED has so much to offer to its users, there are concerns regarding data privacy on the credit card bill payment app  as all the credit card details are being saved and bank accounts are linked. One such instance where CRED seeks your permission to grant access to your email account in order to view all your email messages for the purpose of analysing your spending patterns and credit card statements. Adarsh Thampy, Founder, RupeeTip speaks, “Data can get hacked. Nothing stops hackers from writing a malicious script to gain access to your email inbox that’s tied to your bank account.” Hackers can easily request a password reset, change your linked mobile number, and rest is their profit. Though they have only complete read access permission to your emails, that is more than sufficient to wipe off your bank accounts.


We believe CRED is an amazing innovation and such innovations must be encouraged. But one cannot just risk their finances on the innovation. Hence, if an individual has a small bank account, their decision becomes easy. But for large holders, if they are aware and accept all the risks, they will be delighted to use CRED and enjoy the benefits. One must be aware and report any suspicious activity immediately.