What is a credit card and how to use it?

A credit card allows you to make purchases by borrowing money from the credit card issuer up to a pre-defined limit. It is like a short-term loan.

You should use your credit card in the following ways:

• Spend only when you must and maintain your budget.
• Pay your bill on time.
• Read your Credit Card brochure about the benefits it offers and the reward program.
• Repayment method should be selected smartly.
• Minimize risk by using your card at trusted merchants.
• Spend within your credit limit.
• Do not close credit card accounts randomly.