Credits Cards FAQ's

When you use a credit card, the card issuer pays the merchant on your behalf. You are then billed for these charges, and you can repay them by the due date. If you carry a balance beyond the due date, you’ll be charged interest.

A credit limit is the maximum amount you can spend using your credit card. It is set by the issuer based on factors like your income, credit history, and financial behavior.

APR is the annual interest rate charged on balances that are not paid in full by the due date. It represents the cost of borrowing on your credit card.

If you don’t pay your bill on time, you may face:

• Late payment fees.
• Increased interest rates (penalty APR).
• A negative impact on your credit score.

You can avoid interest by paying your balance in full each billing cycle. Interest is only charged on unpaid balances carried over after the due date.

A grace period is the time between the end of a billing cycle and the payment due date during which no interest is charged on purchases, provided you pay your balance in full.

• Convenience for payments and purchases.
• Rewards, cashback, or points programs.
• Builds credit history when used responsibly.
• Fraud protection and security.
• Emergency funds for unexpected expenses.

• High-interest charges if balances aren’t paid in full.
• Accumulating debt through overspending.
• Fees like annual fees, late fees, or cash advance fees.
• Potential negative impact on your credit score if mismanaged.

The minimum payment is the smallest amount you are required to pay on your credit card bill to avoid penalties. Paying only the minimum can lead to interest charges on the remaining balance.