What are credit cards and how can you use them effectively?

“Credit cards are like little plastic grenades that are needed to be handled carefully”


What are credit cards and how can you use them effectively?

Nowadays whenever you buy some item online all the E-commerce platforms provide you the facility to pay through Credit cards and some even provide certain lucrative offers like Cashback offers, No cost EMI facility, discount offers if you pay for the item through their partnered bank credit card. Credit cards are considered to be the easiest way of procuring credit if you are having a sound financial background and plus they provide ease and comfort for various day to day transactions like medical bills, grocery shopping, school fees repayment, and many more without involving currency notes and through digital platforms and that too if you don’t have money at that point of time. In laymen\’s terms whenever you swipe your credit card it becomes a debt for you to be paid the very next month.

In today’s article we’ll be talking about what exactly is a credit card and how effectively you can manage it so that it does not affect you financial health so let’s begin

What are Credit Cards?

It is a little plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit. It gives  customers a pre-set credit limit which he can use to pay for his purchases without having to pay in cash or issuing a cheque. Let’s say you swipe your credit card for monthly grocery purchases your account accrues a balance that must be paid off each month that is you need to pay that amount next month.

Okay I understand it didn’t make much sense so let me make you clear this way

“Instead of giving you the full loan in cash, the bank lets you take as much of the credit limit as you want at a given time. This limit vary borrower to borrower and influenced by financial status. Now As you pay off what you’ve borrowed, you can borrow again”

Eligibility criteria for credit cards?

You just need to make sure you fulfil  all the below mentioned criteria before applying for your first credit card

  • Your Age should be within 25 to 65 years.
  • You should have a cibil score of not less than 750. Now to understand what exactly is cibil score and how you can improve it you can check our previous article by clicking here
  • Your nationality proof like voting card or maybe driving license confirming your residential address which must fall within the SuperCard live locations in the country.
  • Applicants must also be an existing customer of the registered bank.

 Usually the older and financially stable you are higher are the chances that you’ll end up availing credit card facility. For lenders it assures less chances of defaulting as users possess a stable source of income and can meet the minimum salary requirements easily.

How you can apply for a credit card?

  • The most convenient and easiest way to apply for credit card is by applying online on the website of the bank.
  • By getting in touch with your relationship manager of the bank’s Branch.
  • Or visiting your nearest bank branch.

I’ll illustrate the whole procedure of what follows after you apply for a credit card and the bank/financial Institution receive your application

  • Step 1

In the very first step the user apply to banks by any of the means mentioned above

  • Step 2

After receiving your application the banks forward all your details to CIBIL and checks with all your details like past credit history, defaults, past repayments etc.

  • Step 3

CIBIL prepares a CIR(credit information report) and revert your Credit score and details  to the Bank.

  • Step 4

The banks confirms the report and after due diligence communicates to you whether your application was approved or not.

This whole process usually takes 10-15 days and if your application gets approved then it’s party time but to make sure you use your credit card in a wise manner I’ve listed few precautions you need to maintain whole using credit cards in next section of this article.

How to ensure you use credit card in a right manner?

  • NEVER EVER compromise your card details it can put you in great trouble. Be careful when handing over your card at a merchant outlet, especially at petrol pumps or makeshift establishments or maybe at your nearest grocery store.
  •  Make all your payments on time. In order to maintain good Credit score ensure that you do not have any outstanding bills and dues and if any ensure that you pay them instantly
  • You shouldWithdraw less cash from ATMs as credit card companies charge amount as high as 2.5% of the amount withdrawn.
  •  As I mentioned in earlier part of article most credit card companies and websites encourages you to use credit cards for purchases by offering you offering reward points/ discount / Cashback offers.
  • While it sounds enticing, don’t spend only to earn points.


While credit card is a boon in situations of emergency and provides ease in transacting your favourite item you need to make sure that you spend keeping in mind that this is debt that is needed to be paid at any cost. Like I said credit is like heat small amounts of it provides light on the other hand high credit can be like fire disastrous for your financial health.

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