Credit card
A card that lets you spend the bank's money now and pay it back later; unpaid dues carry high interest.
A credit card lets you spend up to a limit on the bank’s money and pay it back by a due date. Clear the full bill in time and it is interest-free; leave any part unpaid and it carries high interest, around 3.5% a month on many Indian cards.
Questions people ask
How does a credit card work?
You spend up to a set limit using the bank's money, then get a monthly bill. Pay the full bill by the due date and you pay no interest; pay less and the unpaid part carries interest.
Is a credit card the same as a debit card?
No. A debit card spends money already in your bank account. A credit card spends the bank's money, which you repay later.
What happens if I pay only the minimum due?
The card stays active and you avoid a late fee, but interest starts on the rest of the bill, often around 3.5% a month on Indian cards, so the balance grows. Check your card's terms for the exact rate.
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