Here are the key differences between BNPL (Buy Now Pay Later) and a credit card:
BNPL provides short-term credit for specific purchases. You split a transaction into fixed instalments, often interest-free or low-cost options. Credit cards, on the other hand, offer a revolving line of credit that you can reuse up to your credit limit for different expenses online, offline, or even cash advances.
BNPL is typically easier to get. Many providers only do a soft credit check or light KYC, making it accessible even to those with limited credit history. Credit card issuers normally perform a hard credit inquiry, assess income, credit score, and credit history before issuing a card.
BNPL often gives zero- or low-interest instalment plans if paid within a set schedule. But late payments can attract fees. Credit cards can have annual fees, interest on outstanding balances, cash advance fees, and more.
BNPL has fixed instalment schedules. You choose a plan at purchase, and repay in that structure. With credit cards, you can pay the full balance every month, or make minimum payments, and carry the rest forward (but interest applies).
BNPL credit limits are generally lower. For example, in India, OTP-based BNPL KYC often limits you to around Rs 60,000 annually. Credit cards can offer higher limits, depending on your income, credit score, and card type.
Many BNPL providers do not report every transaction to credit bureaus, so responsible use may not help your credit score much. Credit-card usage is routinely reported, and on-time payments can build your credit history. This is all about what is the difference between BNPL and credit card.
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What is the Difference Between BNPL and Credit Card?
akash
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2025-11-24T07:24:54+00:00 2025-11-24T07:24:57+00:00Comment
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