Last updated: 21 August 2026
Definition
A credit card is a card your bank gives you — it lets you shop on credit. A statement arrives every month, and you make a payment by the due date. Full payment par zero interest — ye 45 din ka free loan hai.
How It Works (Example)
| Step | What happens. 1. Spend | Card se ₹10,000 ki shopping |
|---|---|
| 2. Statement | Mahine ke end me bill |
| 3. Due date | 21-25 din baad payment |
| 4. Full pay | ₹10,000 → ₹0 interest |
| 5. Partial pay | Minimum bhara → interest 24-48% p.a. |
Key Terms
- Credit limit: max spend
- Due date: payment deadline
- Minimum due: 5% ya fixed
- APR: interest rate (24-48% India)
- Grace period: interest-free 21-25 din
Pros & Cons
| ✅ Pros | ❌ Cons |
|---|---|
| Free 45-din credit | Interest 24-48% |
| Cashback/rewards | Late fee + score damage |
| Credit score build | Overspending risk |
| Fraud protection | Fees (annual etc.) |
Frequently Asked Questions
Q: Is a credit card a loan?
A: Haan — har spend short-term loan hai. Full payment par 45 din free credit, warna interest.
Q: How much can I spend?
A: Up to your credit limit — decided by income, credit score and your relationship with the bank.
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