In simple terms, a credit card is a payment card issued by banks to its customers, to use for purchasing goods and services. It is like borrowing money from your bank for shopping, and then repaying it with an interest amount.
This helps in many situations, especially when you are shopping. You need not carry cash along with you, but just have to give the shopkeeper your credit card. The money will be paid by the bank which issues the card. You can use the card not just for shopping, but paying for services too.
Credit cards can be very helpful until you delay repayment. A late fee will be charged extra, as decided by the bank, and could possibly be very high! Smart users pay back the amount due every month, so that the debt amount doesn’t get too big.
There is also a limit up to which money can be credited. It is fixed by the bank, depending on your ability to handle the debt. An intelligent use of credit card will help the customer.