A Credit Card is a plastic card bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and services and to obtain cash disbursements on credit, for which a cardholder is subsequently billed by an issuer for repayment of the credit extended at once or on an installment basis.
You can use a credit card to make a purchase on credit, and pay later. They give you a breather and relieve you from the tension of arranging for immediate cash in cash you need to make urgent purchase but do not have liquid money in hand. In our country, credit cards have played a major role in the metamorphosis of the middle and low-income groups, relieving them from the constraints of monetary exigencies.
Of course, they have also opened the floodgates of innumerable fringe benefits such as discounted travel, holiday and stay, dining facilities in star hotels etc. Without batting an eyelid, you can saunter into a jewellery showroom and pick up that exquisite diamond pendant that you had coveted for long. Or you can make your festival pruchases well in advance, much before your tightfisted employer decides to release your bonus. In other words, you no longer need to postpone your desires. Just go out and furnish yourself with whatever you want and settle your dues later. After all, in an era of instant gratification, it is not a great sin to pamper yourself!
Credit cards can enable you to have that little extra spending power when and where you need it. In addition to paying for purchases you can also use your credit cards in order to withdraw cash from a cash machine, not only in this country but all over the world.
Every month you will receive a credit card statement that will give details of both your balance (the amount of money you have either withdrawn or spent) and any interest that has accrued upon it. You can then either pay off the full amount or make the minimum payment.