New Delhi, May 3 -- A line of short-term borrowing, credit cards are flexible credit instruments that come with the highest interest rates among most personal finance tools. The major benefit when using a credit card is that it helps build your credit score. Further, when it comes to utility, a credit card simplifies payments, assists with tracking expenses, and has benefits on offer from the lenders that could be highly valuable.

However, while it is an enticing prospect, investors must be sufficiently cautious when applying for a credit card and take into account all the associated risks. Overall, taking your time to find the correct card for you and learning how it fits into your lifestyle can help you avoid compounding debt.

For thi...