Carrying a good amount of cash with you is never a wise thing to do, and cheques are not always acceptable. With the coming of new age technology, this dilemma of our lives has come to an end. In the era of smart cards, money has a new physical form that makes it more portable and convenient.

With the change in time we have shifted ourselves to credit cards from hard cash. While debit cards to have gained a lot of popularity, here is all you need to know about these plastic cash. Credit card is a mode of payment that requires the cardholder to pay at the end of a specific period once they have reached the limit.

Cash back: Credits cards are a widespread mode of payment among shoppers, reason being that the user gets a fixed amount of cashback in the form of points and sometimes real cash (more on the same later) on every transaction.

Interest rates: The interest rate differs from bank to bank. Every bank has different interest rules. The delay in payment adds penalty to your net payable amount.

First-time reward: There are a few credit card providers who offer a specific amount of reward or gift to the first-time credit card users. The rewards are usually in the form of points which can be redeemed later and sometimes gifts like free shopping vouchers too.

Additional charges: In some cases you may be liable to pay additional charges such as international transaction fees, account-keeping fee, cash advance fees, etc. Find out if the credit card you plan to choose comes with any of these charges. If yes, make sure the charges aren't too heavy.

Rewards: Some credit cards do a discount on purchases you make. Every transaction through your credit card offers you points that you can be later redeemed.

Cash Withdrawal: There are a few credit cards that offer you the privilege of withdrawing cash. This turns out to be a boon in times of emergency. But it is advised to go through the terms and conditions well, as the interest rates may be exceptionally high for cash withdrawals.

Eligibility criteria

One needs to fulfil the following eligibility criteria before being issued a credit card.

Should be at least 18 years of age Must have an active source of income, based upon which you'll be able to pay the credit card bills. Should hold a good credit history Savings account is mandatory

Documents required

Before applying for a credit card, make sure you have the following documents with you. These are the most essential requirements that need to be shown.

Proof of residence � Rent Agreement, Bank Statement, Ration Card, Electricity Bill, Telephone Bill, etc.

Identity proof - PAN card, Voter ID card, Driver's License, Aadhar card or Passport

Age proof � Birth certificate, Voter ID card, Passport, etc.

Income proof � last 3 month's salary slips or latest ITR in case of self employed.