What is a Credit Card?
A credit card is card issued to a person which he can use for making
It allows the cardholder to pay for goods and services based on
promise to pay for them.
The credit borrowed by a person needs to be paid on monthly basis
to the bank or any financial institution.
Various Types of Credit Cards
Credit cards are of various types with
different fees and interest rates.
When you are applying for a credit card,
it is important to know about various
types available which will help you make
the best choice for selecting your credit
card depending on your lifestyle and
Most commonly available credit cards
are listed as follows.
Credit Card VS Debit Card
Credit Card Debit Card
Borrowing money from a bank or
Money that you have in your bank
Can be used as Credit card only Debit card and Credit card
Line of credit Carries Line of Credit No Line of Credit
Monthly bills Yes No
Connected to No need to connect to any bank
Interest Need to pay interest on the
Things you should know
Make a payment every month.
Credit cards can also be good for clearing debts.
If you have poor credit ratings then you won’t get the best deals.
You get extra protection if you pay with a credit card.
Credit card can be used for making online transactions.
Benefits of Credit Card
Credit card provides cashless payment facility.
Credit card can be used online for making payments and also for
Cash back facilities are offered on credit cards when you use for
purchasing online or offline.
Reward points are offered on some credit cards which you can use
later in form of gift cards.