New Delhi, May 31 -- While credit cards are a flexible option for short-term borrowing and can offer valuable benefits from banks and lenders while simplifying payments for customers, they also come with hefty charges and fees. Healthy financial discipline is needed to make the most of your credit card's benefits and build a solid credit score.

You must keep in mind that credit cards have some of the highest interest rates among the various personal finance tools and have a slew of additional charges and fees attached. So, while it may seem straightforward, your decision to open or close a credit card can significantly impact your overall credit profile.

It is thus important to have a good idea of the full costs and risks involved, espe...