What Is a Credit Card?

What Is a Credit Card?

A credit card is a plastic card or metal card that makes the cardholder to borrow funds from the bank. The Card comes with the terms and conditions to pay back the borrowed money from the bank with the applicable interest and other charges that come with the card within the given time or overtime. Apart from the "Standard Credit Line" the credit card lender may also provide a "Separate Cash Line of Credit (LOC)", to the customers. This enables the cardholders to borrow cash in advance, from banks ATM's, etc., but this facility comes with higher interest rates, and have different terms applicable than the standard credit line.

credit card explanation

What are the Types of Credit Cards?

  • Airline and Hotel Credit Cards
  • Balance Transfer Credit Cards
  • Cash Back Credit Cards
  • Flexible Rewards
  • Premium Credit Cards
  • Student Credit Cards
  • Travel Rewards Credit Cards

How does Credit Card Works?

  • You can purchase things with convenience.
  • It helps to save money.
  • You can gain even on your purchase like rewards and can save.
  • Credit history can be built.
  • You can purchase things and can repay the amount later to the card lender.
  • Terms and Conditions apply, so read properly the blueprint before getting your card.
  • For further details please visit How credit scores work? blog

How to build a credit history with a credit card?

  • Use your credit card wisely to build a credit history.
  • With the credit card, make sure you repay the amount in time to avoid interest rates.
  • Remember your aim is to increase the credit and to rebuilt credit history not to make it worse.

What are the Reasons to Use Your Credit Card?

  • Welcoming Bonuses
  • Reward points
  • Cash Back
  • Safety
  • Frequent-Flyer Miles
  • Grace Period
  • Insurance, etc.
  • For more details please visit Reasons to Use Your Credit Card? blog

How to apply for a credit card?

  • Step 1- Compare the Cards side-by-side
  • Step 2- Meet the specified eligibility terms
  • Step 3- Get e-approval through a pre-approved offer

How to select the right credit card?

  • Check accessibility
  • Check Features
  • Check Incentives
  • Check Fees and Charges
  • Note the Highlights of the Card
  • Look Over Credit Limit
  • Study Application Procedure
  • CIBIL Score