How Do Credit Cards Work?

Credit card guide — simple, helpful, free.

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Last updated: 21 August 2026

The Cycle

Credit card ka poora system ek monthly cycle me chalta hai: spend → statement → payment → repeat. Billing cycle 28-31 din ka hota hai.

Dates That Matter

Date | What it is. Transaction date: when you spent. Posting date: when the bank added it to your account (1–3 days). Closing date: cycle ends, statement generated. Due date: paymentkarna hai

Full vs Minimum

Full payment: zero interest. Minimum: 5% → late-fee se bachat, par interest pura balance par. Trap samjho.

Who Makes Money

Banks: (1) merchant interchange fee 1-3%, (2) interest on carried balance, (3) fees. That's why cards are given "free".

Frequently Asked Questions

Q: Do credit cards charge monthly?

A: No — there can be an annual fee; interest only applies when you carry a balance.

Q: Can I use card without money in bank?

A: Haan — card apni credit limit par chalta hai, payment baad me.

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