When you apply for a credit card, the bank needs to review your credit history and credit score to determine whether you qualify for the card. If your application is approved, you will receive a welcome letter that includes information on how to activate your card and sign up. Signing up means that you agree to abide by all the terms and conditions of the card and commit to paying off your credit card bill on time. If you don't sign up, you won't be able to use your credit card or get a line of credit.

After you sign up, you will have a credit limit within which you can spend. You can use your credit card for online shopping, travel bookings, supermarket shopping and more. When you make a purchase on their account, you should make sure there is enough balance available to repay the purchase. If you fail to make timely payments, you'll pay hefty late fees and interest, which can have a negative impact on your credit history.

If you no longer need the credit card or cannot afford the payment on the credit card, you can cancel the credit card contract. You should call your credit card company or cancel the online contract. Canceling a credit card will not automatically clear your outstanding balance, and you will still need to repay the balance you owe in full as required by the credit card company. By being cautious about the use and management of your credit card by canceling your contract, you can maintain your excellent credit record in the financial markets.