Whenever you think of the best tools for personal finance, credit cards often come up at the top of this list. In fact, as of February 2024, about 100 million Indians have been known to use such cards for different types of purchases. The reason is simple - they offer several benefits while at the same time helping increase your credit score. Here is a comprehensive overview of what these cards are, how they work, their types, and the wide range of benefits they offer.

What Are Credit Cards?

Most banks issue these cards to their loyal clients as an effective financial instrument. Their sole purpose is to serve as borrowing tools. If your bank has issued you a credit card, you will find that this card lets you borrow up to a specific limit (known as a credit limit). You are free to use this credit limit to make any type of purchase you desire.