Basics of Credit

When you buy something today and pay for it later, you have just taken Credit.

Simply put, credit can help you get the things you want when you don't have enough cash.

Your credit card is a form of credit - a substitute for money in the form of a plastic card enabling you to buy now but pay later.

• You can use them to make purchases in millions of places, both in store or online.
• You can also use credit cards for balance transfers and taking out cash from an ATM.
• And if you need money for an emergency or unforeseen expenditure, you don't have to apply for loans at the eleventh hour – you already carry one in the form of a credit card.

The ICICI Bank Instant Credit Card is a secured credit card, i.e it is issued against the security of a Fixed Deposit. It is an excellent choice to help you begin building a good credit score.

Your credit score is a number that indicates to lenders how "credit worthy" you are.

• It is calculated using records of how well you are repaying or have repaid any credit.
• Most lenders provide repayment information to credit reference agencies or credit bureaus (CIBIL in India) which calculate and maintain your credit score.
• This score is used for decisions on whether to lend further to you, without which, it is difficult for lenders to know whether you will repay your borrowing on time.

We have attempted to put together a series of easy-to-follow tutorials for your convenience Read them now or download as PDF to access later.