What is a credit card with an example?

A credit card is a financial instrument issued by banks that allows you to borrow funds up to a pre-approved limit to pay for goods and services. Unlike a debit card, where money is deducted from your bank account, a credit card lets you pay the lender back later.

For example, if you use a credit card to buy a smartphone worth ₹15,000, the bank pays the merchant. You must then repay this amount to the bank by the monthly due date to avoid interest charges.