1. What is a credit card?

A credit card lets you borrow money up to a certain limit to pay for goods and services, with the promise to repay later.

2. How is a credit card different from a debit card?

A debit card uses your own bank balance, while a credit card uses borrowed money (credit limit).

3. What is a credit limit?

It’s the maximum amount you can spend on your card, decided by the bank based on your income and credit history.

4. What is a billing cycle?

It’s the period (usually 30 days) for which your card transactions are recorded.

5. What is the due date?

It’s the last date by which you must pay at least the minimum amount to avoid penalties.

6. Do I need to pay the full amount every month?

No, you can pay the minimum due, but the remaining balance will attract interest.

7. What happens if I don’t pay my credit card bill?

You’ll face late fees, high interest charges, and your credit score will drop.

8. What is an interest-free period?

It’s the time (usually up to 45–50 days) when you can use your card without paying any interest, if you clear the full bill by the due date.

9. What are reward points?

Points you earn on card spending, which can be redeemed for vouchers, travel, shopping, or cashback.

10. What is an annual fee?

Some cards charge a yearly fee for usage, while others are free-for-life.

11. What is a joining fee?

A one-time fee you pay when you first get the card.

12. How do credit cards affect my credit score?

Timely payments improve your credit score; delays hurt it. High utilization of credit limit also reduces your score.

13. Can I withdraw cash from my credit card?

Yes, but it’s costly. Cash withdrawals attract cash advance fees + immediate interest (no interest-free period).

14. What is an EMI on a credit card?

You can convert big purchases into monthly installments (EMIs) with interest or sometimes at 0% offers.

15. Can I use my credit card abroad?

Yes, international cards work overseas, but you’ll pay foreign currency markup fees (usually 2–3%).

16. What is a secured credit card?

A card issued against a fixed deposit (FD) — useful for building credit history.

17. How many credit cards should I have?

There’s no fixed rule. Having 2–3 cards can be useful if you manage them responsibly.

18. Can I increase my credit limit?

Yes, banks may offer an automatic increase based on usage, or you can request one.

19. What is a balance transfer?

You can transfer outstanding dues from one credit card to another, often at lower interest for a limited time.

20. Are credit cards safe?

Yes, but always keep your PIN, CVV, and OTP private. Use only trusted websites and merchants.