All You Need To Understand About Using Credit Cards

If you are a beginner in using credit cards and are exploring your way around, this may be the correct place for you to do so. Let us gain a brief know-how regarding the basics of a credit card, its cost framework, and ways to select a card that suits you in the best possible way.

What is a Credit Card?

In simple terms, a credit card refers to a plastic card, which gives you access to a credit amount that you can use to make payments and use services; this amount comes with a repayment tenure within which the credit amount needs to be paid off which can be facilitated through a payment app as well. The favorable factors of these credit cards are that they provide offers, rewards, etc., in the form of points or cashback. A bank or any other type of credit lender issues a credit card.

How Does A Credit Card Work?

A credit card operates like a loan, but rather than getting funds in advance, you get a fixed credit limit on that amount which can be spent before paying back a certain amount to the lender at the predetermined date of the month.

However, credit cards have various advantages:

  • You can utilize a credit card to make a big purchase that can be redeemed in smaller amounts or installments over time.
  • A credit card is comparatively secure to carry along, unlike cash, and is widely accepted everywhere just like a UPI app which facilitates payments by scanning a UPI QR code.
  • Having a credit card lets you create a good credit score.
  • Also, if you have a decent credit score, you can opt for extra cash back, lesser interest rates, and various other exciting offers and rewards.

How do you select a credit card that suits you best?

According to your requirement, you can choose from among a variety of cards:

  • International credit cards:

As per the name, an international or overseas credit card lets you make quick bill payment and also other payments internationally without the need to incur any fee. This alleviates the requirement for retaining cash while on an international trip, making your holiday tension-free.

  • Purchase cards:

Such types of cards are created specifically for the potential shopaholic in you. Credit cards come with a 0% interest while you use them for purchases. But that is not all; there are also other varieties of credit cards, such as store points, air miles, etc.

How can I use my credit card?

Using a credit card is as easy as making use of a debit card; all you need to do is tap, swipe, and pay, and you are good to go. However, the rules may vary, and the following key pointers are to be kept in mind while managing these cards:

  • Make repayments promptly
  • Be careful about the credit utilization ratio
  • Try not to use a credit card to withdraw cash to avoid incurring additional fees


A credit card is a lucrative financial resource. However, it is to be used judiciously and wisely. It comes with incredible ease of use and provides a sense of independence, and also it is to be redeemed on time to the bank. Utilizing it correctly can ace you up for your financial success and let you develop a fruitful association with a bank.