What is a credit card? The advantages and disadvantages of credit cards are given below, In the modern world, credit cards are called plastic money. In a word, it is a card that a customer can take from a bank or such financial institution. … However, a customer can use spend or withdraw up to a certain amount of money with his credit card. He has to pay that money after the specified time. Credit cards are like post-paid SIMs.
What is a credit card?
A credit card is a method by which you can borrow money from a bank and spend it easily. This is called the loan amount (credit limited).
Why would the bank lend you money? Or how much money can you borrow?
You can borrow money from the bank through a credit card but the bank gives you this limit depending on your monthly income. For example, if you think you earn Rs 50,000 per month, then the bank can give you a credit card limit of up to Rs 100,000. However, the credit limit may be lower / higher as it will depend on the policy of the bank from which you want to take the credit limit. But without saying another word, it is doubtful whether credit card limited will be able to get from the bank. Because the credit limit is based on how much money you get each month.
After receiving the credit card,
You will only be able to use a credit card where bills or money are taken through a credit card. From the beginning to the end of the month, you can spend as much money as you want with the credit card (of course within the limit). At the end of the month, the money is deducted from your bank account.