credit card 1
By carousell

Regarding the use of credit cards, there are diverse views. Some may embrace its ease of convenience and some may disagree, believing more debt can be applied to it. Whatever the opinion might be, it is undeniable that a credit card is one of the best financial partners that helps when you cannot get funds from anywhere in different financial emergencies.

Banks and NBFCs that are authorized by the RBI issue credit cards. There are a number of credit cards that cater to the needs of different clients. The credit card that best suits his or her spending habits can be picked. Using a credit card will benefit the cardholder by reward points, cashback, discounts, deals, etc. to save more on everyday costs.


A credit card is a plastic card that comes equipped with a pre-approved balance that can be used for different transactions by the cardholder and paid for later. The issuer of the card allows you to repay the balance in full for up to 50 days from the date of payment without any interest. To avoid any penalty, the cardholder may also pay the minimum due amount of the total amount. The minimum amount due can vary from 5 % to 10%. The balance will, however, be carried forward to the next month, and will have to be charged by the credit card company with interest set.

In developing economies, credit cards are a staple in financial transactions. Credit cards are becoming increasingly popular in many developing economies, including India, because of their convenience and ease of use. From watches to groceries, you can use a credit card to buy something. Getting a credit card implies that to make transactions, you do not need to carry cash. It is a more convenient method of payment.


Credit card companies provide individuals who have consistent income and credit scores with credit cards. Against their Fixed Deposit, some will get a protected credit card. A credit limit is assigned to any credit cardholder based on their income. On or before the due date, you can spend up to the credit limit and repay it. The credit limit will, in most situations, be equivalent to 3 to 5 times your monthly net income. This, however, varies between various banks.

Although a credit card is issued by popular banks, Visa, MasterCard, and RuPay facilitate the payment gateway. However, other terms and conditions on the card will not be fixed by these payment facilitators. Credit card issuers repair characteristics such as interest rate, minimum due number, reward points, etc.

A credit card doesn’t mean you’ve got more cash, it just means you have more time to pay for your purchases. Using a credit card means you are changing the way your expenses are paid for. You are simply borrowing the money from the credit card issuer each time you make a payment on your credit card before you pay it back at the end of the month.


Apart from providing ease of use, for the following reasons, it is important to have a credit card:

  • Assists in creating a decent credit score.
  • Credit period free of interest for up to 45 days.
  • Hassle-free transactions both online and offline.
  • It comes with excellent bonuses, cashbacks, discounts, sales, etc.
  • Handy in financial emergency cases.
  • To make big-ticket purchases and pay for basic EMIs later.
  • All transactions are secure since OTP & PIN authentication is necessary.