What is Credit Card? Benefits of Credit Card and Disadvantages

What is Credit Card? Benefits of Credit Card and Disadvantages

Even in today’s Cashless Era, if you do not know what is a credit card, then you are far behind. Know in this article how to get a credit card? How does it work and what are the advantages and disadvantages of credit card. Most people know about Debit Card.

Which we call ATM card in common language. But there is a lack of complete information about credit cards among people. Come on, today you will know what a credit cards is and how it is different from a debit card. Meaning what is the difference between Debit Card and Credit Cards.


Nowadays everything is happening digitally, whether we buy something or pay someone, everything is done in seconds. All this wonder is of technology. Credit Card and Debit Card are also a link moving forward in this digital era.

The way Debit Card is issued to us by the Bank, in the same way we get the Credit Cards by the Bank itself. But it is not necessary that the credit cards is available to every person who has an account in the bank. There are some requirements to take a credit cards.


If you want to use Credit Card, then for that you have to apply in your bank. Banks give you the approval of the credit cards by checking the complete history and credit score of your account. It may also happen that you do not even get a credit cards.

Or many times if your record is good, banks themselves offer you a credit cards, which you can take of advantage. But our advice to you is that before taking a credit cards, know well what is credit Cards and how it works.


Otherwise, you may have to bear losses instead of credit card benefits. Because the rules of Credit Cards Companies are very strict and the penalties imposed on it are very heavy. Therefore, after understanding all the conditions well, apply for the credit card.

What is Credit Card

Nowadays the competition among banks has increased a lot. Banks are also engaged in providing various types of offers and facilities so that they have more and more customers. Internet Banking, Debit Card and Loans etc. have all these facilities only.

Similarly, credit card is also such a facility provided by banks, which you can take advantage of even when you do not have money in your account. Credit card looks exactly like Debit Card in appearance. Just the numbers which are written on it, they remain embossed.

Now here you will understand what is the difference between Debit Card and Credit Card. Debit Card is directly linked to your account. You can do the same shopping through Debit Card, or you can withdraw as much money as you have in your account.

If you run out of money in your account, then understand that the work of Debit Card is over. But a credit card is a card or facility through which you can shop or withdraw money even if you do not have money in your account. Isn’t this a funny thing.

This simply means that even if there is no money in the account, the money for the shopping you have done is paid by the bank instead of you. Meaning the bank has lent you money, which you have to repay within 30 to 50 days.

So you must have understood what is a credit card and how it works. Credit card is such a service that you can take advantage of it even when you do not have any money in your account. In such a situation, the shopping done or the money spent in any way fills the bank.

Later you can repay the amount spent by you to the bank. For this the bank gives you 50 days. But if you do not deposit this amount in these 50 days, then the bank pays a very heavy interest on you in the form of penalties.

So you understand? What is the difference between Debit Card and Credit Card? Hope you have understood. Every credit card has a limit which is set by the bank. This limit can range from Rs.20000 to Rs.10 Lakhs.

Credit card limit banks are decided by looking at your earnings and account history. You can’t do anything about it. Yes, you can definitely apply in the bank to increase the credit card limit. Now whether the bank increases your limit or not, it is its choice.

Suppose the limit of your credit card is 50000 rupees, then you will be able to shop only up to 50000 rupees. Not more than that. You can use Credit Card to buy or pay for anything anywhere.

Even when needed, you can withdraw money through it even if there is no money in the account. But we will repeat the same thing again that before taking or using a credit card, know well what is a credit card and what are its terms and conditions.

We are saying this because many people take credit cards, they use them too, but due to lack of information, they get caught in the affair of penalties. They are not able to pay the money on time.

Since the interest charged in the form of Late Payment on Credit Card is very heavy, so the amount you pay increases rapidly in a very short time. After that the man is unable to repay him and the problems start.

Credit card is a good facility but it is very important to know all the details about it. Let us know what is a credit card and what is its use. Now know what are the Advantages and Disadvantages of Credit Card.

Benefits of Credit card and Disadvantages

The thing which has been made for your benefit can also give you some harm. By the way, the benefits of credit cards are the only advantages. But if you do not use it properly then you may have to suffer heavy losses. Let us first know the benefits of credit cards.

1. The biggest benefit of credit cards is that it allows you to buy anything or make payment to anyone even if you do not have money in your account. You cannot do this through Debit Card.

2. You can take a loan from the bank at any time according to your credit cards limit, which you can repay to the bank through installments.

3. There are many such e commerce websites from where you get a huge discount when you shop with a credit cards.

4. Every time you pay by Credit Cards at any place like Hotels, Petrol Pumps or other such places, you get some Cashback or Reward Points which you can redeem later.

5. If you want to buy such an expensive thing, for which you cannot collect Pay. Meaning if you want to buy in installments by paying down payment, then in such a situation, credit card comes in handy. You can buy that thing on installments through your credit cards.

So what is a credit cards and what are its benefits, you must have understood. Now it is the turn to know about its disadvantages. Well, it doesn’t have too many disadvantages. Just don’t use it in a wrong way. You may suffer these disadvantages when taking a credit cards.

Disadvantages of Credit Card

The biggest disadvantage of a credit cards is that whoever has it cannot stop himself from buying anything. Even if there is no money in his account, but the man takes it thinking that he will fill it man, now it is 50 days time.

But after that they are unable to collect money and they are not able to pay the credit cards. From here the bank starts charging huge interest in the form of penalty. If you still do not pay attention, then the amount becomes very large by charging interest.

After this, it is no longer your business to pay that amount and you become the defaulter or the credit card company sues you. The use of credit card should never be carried out in emotions.

The second biggest disadvantage is that we do not want to withdraw cash from the credit cards, which is our mistake. We think that we have withdrawn money just like ATM card. But there is a lot of difference between these two.

On withdrawing money from credit cards, one has to pay more Transaction Charge and secondly, the amount of money you withdraw attracts huge interest. And if you are late in filling Khuda Na Khashta, then the bank can charge interest on you from 25 to 30%.

So this was our article What is Credit Cards – Benefits and Disadvantages of Credit Cards. In which we told you how to use Credit Cards and how it works. Hope you got to learn a lot from this article.

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