I have never owned or used a credit card before. I have only used a debit card and other non-debt/non-credit forms of payments online. I am thinking for applying for a credit card, but there are some terms or charges that I don't fully understand. There's a card (specifically, the SBI SimplyClick Credit Card for online shopping). It has an annual maintenance fee and a one-time annual fee.
Apart from this, though the official website doesn't mention this, it also has a "3.50% p.m. (42% p.a.)" finance charge. Given I only purchase one item and I happen to have the sufficient amount in my bank account, does it mean the amount will still be considered a loan and I will be paying a 3.50% interest on that at the end of the month?
Also, are there any other charges I should be aware of? I don't want to discuss the obvious stuff like reward points and annual maintenance charge. But I have no clue how a credit card works. Is every purchase a loan? Or purchases beyond a particular limit is a loan? Does a credit card work like a debit card until I don't cross my bank balance?