Credit Cards for the Uninitiated: A Beginner’s Guide

By | October 9, 2023

Once you understand the basics, you’ll find that Credit Cards are incredibly useful. They can help you save time, earn rewards, and get you on your way to building good credit. 

By getting your first Credit Card, you’ve achieved a major milestone! 

A convenient financial product, Credit Cards come with a host of benefits, like the option to pay for purchases over time, rewards and cashback for all spends, the ability to build and improve your Credit Score, and so much more! 

Ready to get started? Here’s a beginner’s guide to Credit Cards. 

  • What is a Credit Card? 

 A Credit Card is a financial tool that allows you to make hassle-free purchases for goods or services. It is charged to your line of credit with the bill payment made at a later date. It gives you more time to pay and offers the option to split big-ticket purchases into smaller instalments. Although it is easy to get carried away, the importance of responsible Credit Card usage cannot be stressed enough. 

Simply put,  


  • Is there a spend limit? 

Every card issuer (typically a bank) offers you a credit limit based on your profile. You are allowed to spend as much as your credit limit, however, it is recommended that you utilise only 30% of your credit. 

Additional Reading: Can You Use Your Credit Card Beyond Your Credit Limit? 

  • Is there an interest-free period? 

Every card issuer allows a set period during which interest is not charged, typically up to 55 days. Post which, if full payment is not made, interest will be accrued.  

Additional Reading: How The Interest-Free Period Is Calculated On Your Credit Card 

  • When does the Credit Card statement get generated? 

Your Credit Card statement will be generated every month on a pre-set date. Your billing cycle will be typically every 25-31 days. Your statement contains the following details: 

  • Amount spent (since your last statement) 
  • Interest and late payment charges (if any)   
  • Minimum amount due 
  • Due date for bill payment 

As a standard practice, check your statement carefully every month to ensure all the information is accurate. 

Additional Reading: Reversal Of Credit Card Transactions 

  • How to choose the right Credit Card? 

With an extensive range of Credit Cards to choose from, selecting the right Credit Card for you can be quite daunting. It usually depends on why you want a Credit Card and how you want to use it. 

Let’s help you understand the diverse categories of Credit Cards to choose from.  

Types of Credit Cards: 

Just putting a little thought into the purpose of your Credit Card usage, you can leverage the benefits to your advantage. Now that you are well-versed with the basics, pick one that suits you best. 

A one-stop shop for all your financial needs, explore Credit Cards on BankBazaar. 


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