What is a credit card? A credit card lets you borrow funds whenever you want with a simple swipe. That means you can use the bank’s money instead of your own to pay for a product or a service. You need to repay this amount within the stipulated period. In addition, it allows you to gain instant access to credit in addition to amazing features such as emergency loans and interest-free cash withdrawals from ATMs.

Charges

There are various charges which are associated with a credit card which vary from one lender to the other and on the type of card being opted for. These include maintenance charges, interest charges, late payment charges, and charges for ATM withdrawals. It is thus essential to check these charges before applying.

Minimum Repayment

At the end of a credit cycle, the total amount of all the purchases which had been made using the credit card needs to be repaid back. However, these days, many lenders have started providing the option of paying the minimum amount which is a percentage of your total outstanding balance.

Rewards

The more you spend using your credit card, the more reward points you get. These reward points can be exchanged for various gifts provided by the lender which can range from apparel to lifestyle items. Some of the other additional benefits of using credit cards can include discounts, complimentary gifts etc.

Read: What is credit card?