Debit uses your own money. Credit is borrowed money you repay later. The limit is the most you can borrow, and a bill arrives monthly with a due date.
Read three numbers: total due, minimum due, due date. Unpaid balances grow with interest. Missing the due date can add late fees.
Principal is what you borrow. Interest is the price of borrowing. The rate says how much per year, and higher rates cost more.
An EMI splits a cost into equal monthly payments. Paying later can cost extra. Compare totals and fit EMIs into your budget.
Keep PIN, OTP and CVV secret. Check statements and spend on credit only what you can repay. Debit and credit are both tools.
What you'll learn
Lesson 3.1
Whose Money Is It?
Nisha's phone buzzes: 'Congratulations! You have a ₹20,000 credit limit.' Free money? Not quite.
You'll learn: The difference between spending your money and borrowing the bank's.
Two Kinds of Cards: Debit uses your own money. Credit uses borrowed money you must repay.
Limits and Bills: The credit limit is the most you can borrow. The bill arrives monthly with a due date.
Paying the Bill: Paying in full on time usually means no extra cost.
Lesson 3.2
The Credit Card Bill
Tara's bill is ₹10,000. She pays ₹5,000 and thinks she's fine. But what happens to the other ₹5,000?
You'll learn: How to read a credit card bill and why paying only part gets expensive.
Reading the Bill: Total due is everything you owe. Minimum due is the smallest payment, and it does not clear the bill.
The Cost of Waiting: Unpaid balance grows with interest, and the debt can snowball.
Late Fees and Reminders: Missing the due date can cost a late fee. Reminders help.
Lesson 3.3
The Price of Borrowing
Ishaan needs ₹1,000 to start a lemonade stall. Mrs. Rao will lend it... but she wants ₹1,100 back. Is that fair?
You'll learn: What interest is and how rates work.
Principal and Interest: Principal is the amount borrowed. Interest is the extra you pay.
The Interest Rate: Interest rate = percent per year. More years means more interest.
Both Sides of the Coin: Savers earn interest, borrowers pay interest. A higher rate costs more.
Lesson 3.4
Pay Now or Pay Later?
Karan wants a ₹12,000 phone. The shop says: 'Pay just ₹1,100 a month!' Karan's eyes light up. Is it really cheaper?
You'll learn: How EMIs work and how to compare ways of paying.
What Is an EMI? EMI = equal monthly payments. Total paid can be more than the price today.
Three Ways to Get a Phone: Each way of paying trades time, cost and convenience.
Read Before You Sign: Check the total, and make sure all your EMIs fit your budget.
Lesson 3.5
Staying in Control
Farah got a message: 'Your card is blocked! Click this link now.' Her heart races. What should she do?
You'll learn: How to use cards safely and with control.
Protecting Your Card: Never share your PIN, OTP or CVV. Scammers create urgency.
Good Habits: Check statements, and spend on the card only what you can repay.
Debit or Credit? Both cards are tools. Know the rules.
Final challenge
Cards, Credit and Control
You met Nisha, Tara, Ishaan, Karan and Farah. Let's see what you remember. 10 quick questions!
Try a question
From lesson 3.1: Whose Money Is It?
Where does the money come from when you use a debit card?
The shop
Your own bank account
The bank's pocket
Show the answer
Your own bank account. A debit card spends YOUR money, the amount in your account.
Learn it the Yukti way
Every lesson is a short story told in scenes, with a quick question after each idea and a review at the end. Wrong answers come with a clear explanation, and Practice brings them back until they stick. Examples use Indian rupees and Indian rules, and show in your own currency in the app.
Yukti is for education only, not financial advice. It teaches general ideas and doesn't recommend specific products. Spot a mistake? Email support@yukti.finance and we'll fix it.
yukti