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What is a Credit Card?


What is a Credit Card?

Credit cards are ever more popular today than they ever were. More and more people, previously habituated to using cash, are using credit cards freely now. Apart from the easy affordability they grant, credit cards are ways to pay without contact and act as your friend in emergencies. Moreover, you can get one easily online. Credit card use is on the increase with easy application and eligibility.

Now, what is a credit card? A credit card is a small plastic/metal card rectangular shape. Issued by banks and NFBCs, it enables you to borrow money against a pre-approved limit to pay for products. The limit on every card varies, determined by factors like your relationship with the issuer, the type of card, and, most importantly, your credit profile. These days, you can apply online, getting rapid approval for a preferred card. Once you get one, you can swipe it and use it at retailers or for online purchases.

Top Features & Benefits of a Credit Card

Using the card has many features, unique and beneficial, that make shopping hassle-free. Here are some top features that translate to the advantages of credit cards:

Credit Card

  • Affordability – A credit card makes your purchases affordable, both offline and online. Moreover, credit card online use comes with many additional rewards that save you money. Additionally, you get a month or more to buy products, like a free credit period. Furthermore, you can buy big-ticket items on EMI, letting you afford products without stress.
  • Rewards – Every credit card comes with exclusive tips and perks. Credit cards save you money with frequent use, either in the form of points earned and accumulated or cashback on certain brands. You also get perks like discounts on movie tickets, air miles redeemable to purchase flight tickets, fuel surcharge waivers, etc., depending on credit card types.
  • Increase Creditworthiness – You can improve your credit profile by settling bills promptly and using your credit card prudently.

Credit Cards: A Secured Payment Source

People opt for credit cards because of the secured payment mode they offer. In standard credit card networks, essential components to guarantee the safety of credit card use have been introduced. This has been done to reduce credit card fraud. These are:

  • Smart Cards – Cards themselves have been improved upon to prevent cards from being forged.
  • Adding CVV – You may have asked yourself, “What is the meaning of CVV?”. CVV stands for ‘Card Verification Value’ and is a distinctive security feature used when you conduct online transactions when your card is absent (physically) for transactions. Using this number, you get an OTP on your smartphone that verifies you as the user, and then the trade continues.

Key Reasons to Apply for a Credit Card

If you do not already have a credit card, you miss out on its advantages. The main reasons to apply for a credit card, especially on Finserv MARKETS, are to have an effective and instant payment tool at hand. Furthermore, you get to afford many things and pay conveniently on easy EMIs later. This takes away from feeling any cash crunch you may have otherwise experienced.


  1. What is Credit Card? – Credit Card meaning, Credit Card Information & know about Credit Card (bajajfinserv. in)
  2. What is a Credit Card? Learn the Credit Card meaning and definition at Finserv MARKETS (bajajfinservmarkets. in)
  3. Credit card – Wikipedia
Susan M. Davis

Tv expert. Proud web nerd. Friend of animals everywhere. Hipster-friendly coffee trailblazer. Spent college summers short selling clip-on ties in Hanford, CA. Spent two years developing jack-in-the-boxes for fun and profit. At the moment I'm merchandising human growth hormone in Prescott, AZ. Spent several years implementing birdhouses for the underprivileged. Had some great experience lecturing about spit-takes worldwide. What gets me going now is building chess sets in the aftermarket.