What is Credit Card?

A credit card is a thin rectangular piece of plastic or metal card issued by financial institutions, which lets you borrow funds from a pre-approved limit to pay for your purchases. The limit is decided by the institution issuing the card based on your credit score and history. Generally, higher the score and better the history, higher is the limit. The key difference between a credit card and debit card is that when you swipe a debit card, the money gets deducted from your bank account; whereas, in case of a credit card, the money is taken from your pre-approved limit.

Users can swipe the credit card to make a payment or use it for online transactions. After you apply for a credit card, simply make sure that the borrowed amount is repaid within the stipulated time frame to avoid penalty charges. Your credit card details are always secured with the card issuer and you should not share your credit card information with anyone to avoid fraud.


Benefits of using credit card

Reward Points – Almost all credit cards award reward points for spending. These reward points can be redeemed for gifts, credit card payment, vouchers, etc.

Interest free period – Spending you make on your credit card are usually payable after a specified period of time ranges from 14 to 45 days. This period may be different for each credit card issuer.

Offers, Cashback and Discounts – Most of the credit card offers discounts, cashback and offers on online or offline websites.

Free Lounge Access – Some premium and super-premium cards offer FREE lounge access at airport.

Free Insurance – Some premium and super-premium cards offer FREE accidental insurance. Terms and conditions of insurance differs for each credit card company.

Payment to Credit Card via third party app like CRED – This is something unique. Now you are not only rewarded for spending on credit card but also when you pay back to credit card via this CRED app. This app also helps you keep track of all of your credit card. Signup using this link and get amazon voucher of INR 500 from CRED (this may change at the time of actual sign up).


Some of the best credit card issuing company are given below:

American Express


Yes Bank

Axis Bank

Bank of Baroda

OneCard – Life time free credit card