Can You Use a Credit Card on Zelle – A Complete Guideline

A credit card is a payment card that allows you to borrow money from the card issuer. There are two main categories of credit cards. They include secured and unsecured credit cards. Secured credit cards allow you to deposit money to act as security, while unsecured credit cards require credit scores for you to get one. There are various ways you can use your credit card. But can you use a credit card on Zelle?

Well, we shall find out later about the possibility of using a credit card on Zelle. If you have never heard about Zelle, then you might be wondering what it is. Zelle is an online payment service that allows you to transfer money from one bank account to the other. It facilitates the transfer without the need for the account number of the recipient. All you need is their phone number or email address.

Interestingly, Zelle allows instant transfer of money between banks. Therefore, it shortens the time you can transfer money between accounts. Zelle also offers its transfer services as a stand-alone application. You can thus sign up on the app without the need for a bank account. However, using Zelle as a stand-alone app makes you face various limits on the amount of money you can transfer per given time.

How do credit cards work?

Credit cards work in a simple manner. You usually get a credit limit when applying for a credit card online or at the card issuer’s branch. A credit limit refers to the highest amount of money you can borrow from your credit card every month. The limit depends on your credit scores or the amount you deposit for security.

When you use the card for purchases, your credit limit reduces. When you hit your limit, you cannot borrow anymore unless you settle your current debt. The amount you borrow also attracts some interest that you pay together with the borrowed amount at the end of the repayment cycle, generally after every month.

You can use your credit card to pay for goods and services online and at physical stores. When you use your credit card online, you have to provide the card number, the card expiry dates, and the card’s CVV. At physical stores, you need to swipe your card at the register to have the amount deducted.

As I mentioned earlier, we have secured and unsecured credit cards. Secured credit cards require you to deposit money as security. If you cannot pay your debt, your card issuer takes the deposit amount to repay your debt. And by the way, you can build credit with a secured credit card if you have no credit history. That is the main reason why people get secured credit cards. Also, if you have bad credit scores, you can use a secured credit card to build your credit scores.

Secured credit card issuers usually upgrade you to unsecured credit cards when your credit scores grow to favorable levels. Your deposit then becomes available for use in your bank account. 

How do I get a credit card?

can you use a credit card on zelle

You can acquire a credit card from your bank or credit union when you apply. In most cases, you can apply for a credit card online or at a branch. However, an online card application is the most convenient method to use for your application, and then activate the card upon receiving it.

As I mentioned earlier, you can get either a secured or unsecured credit card. A secured credit card is suitable in a situation where you have no credit history. You require credit scores to get an unsecured credit card. Most credit card issuers give credit cards to people with good to excellent edit scores. The question is, which credit card can I get with bad credit? Well, there are unsecured credit cards for bad credit that you can get from various card issuers.

The only problem with bad credit cards is that they charge high-interest rates on the amount borrowed and have low credit limits. However, they are good to help you grow your credit scores for better credit cards. Secured credit cards are also suitable for people with bad credit scores.

How do you get started with Zelle?

To start using Zelle, you need to enroll on the platform. If your bank supports Zelle, then the app is integrated with your bank. To enroll on Zelle, you require your U.S. phone number or email address. You can enroll through the Zelle® app or your mobile banking app.

Once your account is ready, you will start transferring money across banks or other Zelle users on the stand-alone app. You must remember that Zelle does not allow international transfers, and that is why only U.S. phone numbers are allowed during registration.

How to send money with Zelle

When sending money from the app to another person’s account, you only need to enter the recipient’s email address or U.S. phone number. Next, you enter the amount to send, and the recipient will get the funds immediately in their accounts.

When sending money using your banking app, look for Zelle and then enter the recipient details. The funds will reflect in their bank account as long as their Zelle accounts are in their bank accounts.

Sending money on Zelle is free. However, some banks may charge some fees on the amount being transacted.

Can you use a credit card on Zelle?

Zelle only works with banks and credit unions. Therefore, you cannot use a credit card as a form of payment on Zelle. However, Zelle allows you to use debit cards to send money to others. Maybe in the future, the company will incorporate credit card usage into its systems.

If you use Zelle as a stand-alone app, your debit card can act as the source of funds. You can utilize a Visa or Mastercard debit card in such a scenario.

How can you use a credit card?

The fact that Zelle does not work with credit cards does not mean that the cards are useless. There are various ways you can use your credit card. They include the following.

1) Withdraw money

Credit cards allow you to withdraw money at an ATM. You need your card’s PIN to be able to carry out the withdrawal. Moreover, you must check that the ATM you want to withdraw money from supports the credit card issuer. Also, you can withdraw money from your credit card from a bank account. You only need to present your identity card to the cashier, who then performs the withdrawal and hands over the money to you.

However, you should know that withdrawing money with a credit card is costly as you have to part with hefty withdrawal fees at the bank or ATM. Some credit card issuers also charge cash advance fees.

2) Buy goods and services

The primary use of a credit card is to use it for your purchases. You can buy goods and services online and at physical stores. Most people use credit cards to purchase goods at physical stores. Some credit cards give cashback and other rewards when you use the cards at specific places.

3) Send money

Credit cards allow you to transfer money to banks, debit cards, and other credit cards. You can send money online with your credit card. When transferring money to banks and other cards, you require the recipient’s routing and account numbers. However, when transferring money to a recipient of the same issuer, you require the account numbers only.

4) Pay bills

Credit cards allow you to pay bills such as electricity, internet service, water, and any other applicable bill. Again, you can set up an automatic bill payment so that even if you forget to pay, your card issuer will facilitate the process. But can you pay a credit card bill with another credit card? When it comes to bill payment, you can also pay a bill for another credit card.

Who issues credit cards?

Banks and credit unions issue credit cards to eligible applicants. Other financial companies such as Discover and Venmo, which are neither banks nor credit unions, issue credit cards. As I said earlier, you must have some credit history or security deposit amount to get a credit card.

You can possess as many credit cards as possible. It is advisable to have many credit cards to have several reporting companies, thus growing your credit scores to higher numbers.

When talking about credit scores, you must know that all financial companies can access your credit scores from the credit bureaus. Credit bureaus are bodies that are entrusted with keeping financial records of your credit and loan usage.

Are credit cards safe to use?

Credit cards are safe payment cards that you can use for your regular payment without worry. Every credit card has a PIN to safeguard your account from fraud. Also, when using your credit card online, your data is encrypted to make sure that no third party can access your details.

Bottom line

Credit cards are payment cards that you can get from banks, credit unions, and other financial companies. A credit card can be unsecured or secured. There are various ways you can use your credit card. These include buying goods and services, sending money, and withdrawing money from ATMs. However, you cannot use a credit card on Zelle. Credit cards are safe, and you can use them without worries.