What is Credit Card and Credit Card Uses
What is a Credit Card
It is basically a normal plastic card, just like your ATM card or debit card. But the use of a credit card is slightly different from an ATM or debit card.
With an ATM card, what you do is withdraw the money that is already available in your bank account and spend it. But the use of a credit card is a bit different. Even if there is no money in your account, you can still use your card to withdraw money, make purchases, or transfer money anywhere. Even when there is not a single rupee in your account, you can still use it.
The main work of a credit card is to give you credit. Today, all the banks in the country—whether private banks, public sector banks, or non-banking companies (NBFCs)—are providing the facility of credit cards to their customers.
Credit Card Limit
Whenever a bank gives a credit card to any of its customers, a limit is set. This means you can use money from the card only up to a certain limit. This limit can be 25,000, it can be 50,000, or it can even be 1 lakh. That means whatever limit you get on your card, you can use that amount through the card, whether there is money in your bank account or not—it does not matter. That money is given to you through the credit card by the bank or the company that has issued the card.
Credit Cards Uses
- purchase anything and for online shopping.
- e used to pay all types of bills such as electricity bills, water bills, and gas connection bills.
- recharges like mobile recharge and Wi-Fi recharge.
- book tickets online, such as bus tickets, airplane tickets, or train tickets.
- to pay loan EMIs.
- buy fuel like petrol or diesel at petrol pumps.
- transfer money.
- In emergency cases, cash can be withdrawn within the credit card limit.
You can use a credit card to purchase anything and for online shopping. Use credit card to pay all kinds of bills, such as electricity bills, water bills, and gas connection bills. You can also use it for recharges, like mobile recharges or Wi-Fi recharges.
Apart from this, if you want to book any ticket online—whether it is for a bus, airplane, or train—you can use it. If you want to pay loan EMIs, you can use a card for that as well. If you want to buy fuel like petrol or diesel from a petrol pump, you can use the card there. In addition, if you want to transfer money, you can also do that using a card. And in emergency cases, if you need to withdraw money, you can withdraw cash within the credit card limit.
These are so many uses that you can easily do with the help of a credit card. Now we understand what a card is, and we also get a limit and use it. But the question is about repayment—do we have to return the money or not, and if yes, how much time do we get?
Most credit cards give you 30 to 40 days’ time to repay the amount you have used. Suppose your credit card has a limit of 50,000 and you have used 20,000 from it. Then you have to pay that 20,000 back to the company within the next 30–40 days.
If you delay this payment, late fees are charged and additional charges are applied.
Now, who gets a credit or who can take it? If we talk about this, there is no specific eligibility criteria to take a credit cards. Any person who has an account in any bank can apply for a credit , and whether the bank approves it or not depends on what your account balance sheet says. How much transaction you do through your bank account—if you do good or even normal transactions, then you can get a credit card.