What Is a Credit Card?
A credit card allows you to borrow funds up to a pre-approved limit to make purchases, which you then repay — either in full each billing cycle or over time (which typically attracts interest on the outstanding balance).
Eligibility Factors
- Income level and employment stability
- Credit score and repayment history
- Existing credit exposure across cards and loans
- Age and, for some cards, banking relationship with the issuer
Common Fees and Charges
- Annual or joining fees
- Interest charges on revolved (carried-forward) balances
- Late payment fees
- Cash withdrawal charges and applicable interest
- Foreign currency transaction markup
Rewards & Responsible Usage
Many cards offer rewards points, cashback or milestone benefits. These can add genuine value, but they are most useful when you pay your balance in full each cycle. Carrying a balance to chase rewards often costs more in interest than the rewards are worth.
- Pay at least the full statement balance where possible to avoid interest
- Keep credit utilization (balance vs. limit) low
- Track due dates to avoid late fees and credit score impact
- Read the fee schedule before applying for a card
A healthy credit card habit can support your credit score over time.