How does a credit card work in India?

A credit card in India is a financial tool that provides a pre-approved revolving credit limit for offline and online transactions. The process involves:

• Usage: You can spend up to your assigned limit. The bank pays the merchant on your behalf.
• Billing: A monthly statement is generated detailing your spends and the total amount due.
• Repayment: You must pay at least the minimum amount by the due date. Paying the full balance helps avoid high interest charges.
• Reset: Once repaid, your credit limit is restored for the next cycle.