Tips on Credit Card Use

If you are a credit card user and know about digital wallets then this article can make happiness on your face. because in this article I am going to explain you how you can make maximum profit by mutual use of E-wallets and credit cards.In this digital age digital wallets are being used on very larges scale, I hope everybody heard about Paytm and Freecharge, these wallets are very popular & trustworthy. they are very easy to use. generally these wallets are used to recharge, bill payments, ticket booking, food order, fund transfer, online shopping etc.Here I have listed couple of benefits that you can avail with mutual use of credit card and E-Wallets1. You can get waive off your credit card annual fee2.You can earn maximum reward points on your credit card3. You can Improve your Credit CIBIL Score4. get cash in your hand without paying any interest for 50 days5. Make dual profit by mutual use of credit card and e-wallet.To get above benefits just follow the below instructions1. Download Paytm and Freecharge app in your smart phone2. Register yourself on Paytm and Freecharge with your mobile number and Email ID3. check you wallet transaction charges and limi4. in paytm wallet you can transfer upto Rs, 25000 per month from Paytm to your bank account with zero translation charge. this limit applies for who have done their KYC so get your KYC done5. In freecharge wallet you can transfer upto 10000 month without any KYC6. If you are using more than one mobile number and e-mail ids than you can create more than one account on Paytm and freecharge7. If you open one account of paytm and one account of freecharge its mean you have got limit of Rs.35000 per month8. If you create more than one account you can increase your transfer limit accordinglyHow to get benefit - Lets have look on real exampleSuppose you have two paytm account and two freecharge accounts its mean you have got transaction limit of 35000* 2= 70000 per month. and you have a CITI Bank reward card in which you have got credit limit of 1 Lakh per month with following benefits1. Your annual fee of Rs. 1000 is waived on making spends of Rs.30000 in a membership year, Get 1500 points on your first spend of Rs.30000 made within 30 days of card issue2. Get 1000 bonus points on card spend of INR 1000 made within 60 days of card issue3. Get 300 bonus points on card spend of INR 30000 or more in a calender month4. Earn 10X Reward points on spends at apparel and departmental store5. Earn 1 point for every Rs.125 on all other purchase value of 1 reward point is 0.35 PaisaIf you are infrequent credit card or you use credit card very rarely because you afraid of making extra credit from bank that you will have to pay later in that case use of wallet will be the best option.Now see how you will get above benefits, Don't forget you can add up to Rs.70000 in your wallets per month so add 70000 rupees in your  Paytm and freecharge wallets using your CITI bank credit card and now just transfer Rs.70000 to your bank account with 0% transaction charge.Now have look on profit that you earned by doing this transaction1.Your annual fee of INR1000 would be waived off because you have spent Rs. 30000 in the membership year2. You will ern 15000 bonus points( Rs.525) on your first spend of 30000 made within 30 days of card issue3. You will earn 1000 bonus points( Rs.350) on card spend of 1000 made within 60 days of card issue4. you will get 300 bonus points( Rs.105) on card spend of INR 30000 or more in a calender month5. With this transaction you would not be eligible for 10X Reward points because it is applicable only when you spend at apparel an departmental stores6.  To get 10X reward points you can use your remaining credit limit INR30000 on apparel and departmental store7. By adding money to wallets you are eligible for earning 1 points on spend of Rs.125 on all other purchases. on this transaction you will get 560 rewards points( Rs.196) , 8. Lets calculate total profit that you have earned- 1000+ 525+ 350+ 105+ 196= 2176Other Benefits -1. Here best thing is you are not spending your money to extravagant. you money is still in your bank account so you have cash in your hand for that you don't have to pay any interest charge for 50 days2. If you spend 70000 rupees every month it will improve your credit CIBIL Score3. As you have all money in your bank account so you can easily repay your outstanding amount4. When you make recharge & bill payments from your wallets they give you some cash back and other side you earn reward points on credit card5. Some times wallets offer cash back on add money so can make profit from this as wellAll the best! Note: I am not a financial adviser and this article is based on my personal experience and this should not be used as a warrantable, I am not responsible for any deceitfulness. please read terms and condition of your wallet and bank carefully.

Hello everyone, now we are pursuing a modern life. We want to get a smart life. Credit card is a big opportunity for us to get a smarter way of life. So you must have a credit card for your better life. If you have a credit card, you will get many facilities. Now we can give many types of bill, like phone bills, electric bills, Internet bills etc. We can buy any tickets using it. We can pay bills on hotel, restaurants, bar. We can shopping with the card. We can order any thing through Internet by using credit card.

It is like l mobile many bag.

So, in this time you must have a credit card for a smarter life.

Hello everyone I am going to give you tips on using credit card, really friend's there are several benefits of credit card to paying. Here below I written some basic and important tips during using credit card, I am using credit card from the one and half years, There is many benefit or demerit of credit card but it depend upon how do you use it. I taken lot of benefit by using it that's why I will suggest you some following tips, Hope you always remember.

1. First check company policy.

2. Check your credit limit.

3. Always remember you billing cycle like date, transaction bill, due date etc.

4. Deposit your bill within due date other wise they will charge you high interest in terms of percentages.

5. During shopping period try to pay with credit card, because many company will offers cash back 1 to 5 percent.

6. EMI facility available.

7. Avoid withdraw money by using credit card.

8. Always maintain your credit rating or score which is given by credit card company.

9. Don't give your your credit card to someone else.

10. Always check your credit balance after any transaction.

If you are using credit card very smartly then nothing to see any difficulty.

Thank you.

Hello everyone ! I am using SBI Credit card from last 4 year. For me its very helpful .easy payment options on our credit cards . whit this card you cam easily pay bills for goods and services you shopped. Now days a Credit card is very easy To use everywhere. We must start using the credit card. whit help of credit card the cardholders can shop without having cash in hand. And You can set the daily spending limits.

I had used credit card of HDF bank since 2013. We need to be very careful while using the credit card by fixing upper limit for the amount you swipe. It is easy to get a credit card for a salaried/business man. We should limit the usage only for emergency cases and should pay the dues before the due date. Don’t take any EMI or cash withdrawal option with the credit card. For EMI, they will charge fixed amount of processing fee and heavy interest rate which will be very higher than the normal loan rate and service tax. Cash withdraw is also very costlier with credit card than loan/credit card EMI rate.

I will give a detailed view about the usage of the credits card with an example. Suppose X earns 30 K per month as salary and he has to pay rent, provision expenses, vegetable expenses, other home expenses, children expenses etc. In those cases, he can use card for Rs. 1, 000/ and can pay in right time. This is fixed as less than 5% of his monthly salary. This also use only if he incur it as an additional one and cant meet with his monthly savings. In addition if we had incurred some additional expenses, he wish to buy a lap top worth Rs35k, and LIC premium of Rs13k which is once in a year. Heavy travelling expenses on some emergency worth Rs 7000, hose hold furniture of Rs. 12, 000, additional travelling cost of Rs 3000. The total EM will be 7000 pm with interest, processing fee and all. This with additional purchase will eat out the income of salaried person. And if, he additionally, purchase every month for provision and the total dues will be more. They will charge penalty, even if the credit card holder pay the loan. So all this loan will get over only be one year. If he change his job and salary get delayed, the will charge heavy interest rate with 40% per annum and penalty. So never use the credit card EM option, you can go with gold loan which is cheaper then the credit card. Never go behind the reward points offered by the Banks which is totally ridicules way to make the card holder to spend more money with card.

You can use card only for emergency cases, that to if you don’t have any other option to get money like friends/relatives/gold loan or advance salary. Never ever use credit card if you have money with you. First limit keep cash itself for emergencies as card many not be accepted everywhere.

My mantra for using Credit card is simple: Use it but pay the dues every month! If you follow this you would go a long way with it and using CC would no more be a hassle.

Having put that up as simple as above, let me put down some usage tips for the readers.

I am using CC from almost those times when they were picking up in India and there was flood of different CCs in the market.

In the past: Banks were offering them for free or literally dumping them on customers with little formalities. I am not sure what customers assumed then?Whether they thought that it was something that they could use for Purchases/payments/money-withdrawal and not pay for it? If so, they were fools. This is where Banks made money! They hired many marketing executives(probably on commission basis) to market CC and I remember these agents used to make people just sign a blank form and give away the card - promising that they would fill in the customer details using their ID proof. Eventually, there were many frauds happening like - getting them subscribed to various other schemes, insurance policies being dumped on customers, they were robbed of huge annual fees etc.

Also, customers did not realize the intensity of non-payment of CC bills on time. They charge one of the highest interest rates on dues.

Over time, people became smarter and they have started reading between the lines of T&C of these cards.

Choosing a CC: I would suggest to take a CC from that bank with which you have trust and relation for a long time. For instance, most banks with whom you have your salary account would give you better offers and benefits.

Things to look for: Banks keep bugging you with offers like asking you to upgrade your CC(like upgrade to Gold Card, Platinum, Priority and all such fancy names) - understand what it means and whether you really need them. For ex. upgrading from Silver to Gold CC may increase your CC usage limit from 3L to 5L at an annual fee of say 2500/- but you need to analyse, whether you really need this upgrade - is your spending on CC is going to be to an extent of 5L. If not, you should simply decline such offers.

When somebody tempts you to take a CC for free, ensure you check all details carefully, primarily check that there are no annual fees.(by now, most banks offer them for free). Because the catch is - nobody tells you of these fees and they get listed in your first CC statement with a last payment date - so you are left with no option but to make the payments. Some banks also use codes or banking terms in the statement while reflecting your dues so that you keep wondering what they have charged you for.

Payments History: It's always good to maintain a good past record with usage and payment of CC bills, remember CIBIL watches it.

Make a timely payment: you should make a complete dues payments on or before the last day of the payment. If not, you may be charged with heavy interest in your next statement.

Surcharges: Check if there are any surcharges charged on your transactions for example, some Banks charge a nominal surcharge(Petro Surcharge) when you swipe CC at the fuel stations. Some based on the tie-up would waive this too. For instance, HDFC has a tie-up with Bharat Petroleum stations and they would waive off the surcharge. Why it is important to know this is because - this is how it happens - lets say you fill in fuel worth 1000, the attendant swipes your card for 1000 - all is fine until here. However, when you receive your next CC statement you would notice, you are charged some 1022/- or 1049/-(this additional amount over 1000/- is the surcharge). In case this is waived off, you would see another entry down somewhere in the statement saying "Petro surcharge waiver"(with a Credit entry). However the amounts would not exactly match, waiver may be little lesser.

Loss of card: This can be a problem but not to worry much because most cards now come with additional security check/PIN. The quickest thing you need to do is call the customer care and block the card.

Using it online: It's totally safe to use the CC online as there are additional authentication checks but make sure you do not save the CVV. It is even fine to save the CC number but not the CVV or any other passwords.

Authentication: In most cases authentication happens using the CVV(the 3 digit code behind the card). However, there are various other mechanisms too and varies from bank to bank for instance for HDFC card that I use, when I use it online I have to also add additional password to authenticate my transaction. Sometimes, banks use OTP code as well.

Add-on cards: This is another hidden'jugaad' by banks to make money. If a bank representative fills-in the form for you, there are all possibilities that he checks the'Add-on Card' field, so the bank issue cards in the names of your family members(like spouse, father, mother etc). If this is not handled with care, there are chances that various fees/charges are also deducted on these cards.

Reward points: Something positive about CC. Keeping in mind all the above, also check which card offers good reward benefits - this is nothing but banks give you points for certain amount that you spend - which you can accumulate and redeem for gifts/vouchers. Some offer Air miles too. Policies and reward programs differ for different type of cards.

Bank relation: you can make use of your relations with the bank to get various types of waivers, benefits etc. For ex. if you are a salary account holder of the bank for say 10 years and you have a clean payment record then you can always ask for waivers with respect to various fees/charges etc.

Merchant Fees: If any merchant asks you for additional charge/fee(1.5-2%)- please say no! - it has been a directive from RBI that no merchant should be charging such fees to the customer.

Do not maintain/use too many cards: I would recommend just one CC but if your needs demand you can go for another one - because with so many complex clauses and hidden costs etc, it may be difficult to manage multiple cards.

Another important tip - never disclose any CC information on phone. No bank would ever ask for any of your CC details for any reason.

Final verdict? Keep your CC usage in check - use it, make payments on time, check your monthly usage, bills etc - do not make it a habit to default, else you would never realize when you have got into a vicious circle with a huge back log of dues.

Many people are fascinating while using credit cards for purchases with a perception that they can shop without having cash in hand, but on the other hand they forget that they pay much more afterwards. I have been using credit cards since long time, but have decided to get rid of it and never recommend anyone to go for it.

1) First of all, after using the card for the first time, a customer gets excited about the fact that without spending a single money, he or she could procure a product. I must say my own experience that in course of time, it becomes an addiction and a moment is reached when the customer repents for it.

2) Secondly, all credit cards claim that they offer free credit for 50 days. But let me tell that it is partially correct. If one makes a purchase just one day before the new bill is generated, the total amount is charged and there is nothing like free credit.

3) The rates of interest ranges from 2 to 4 percent per month which is as many as three times higher than that of a personal loan. Again, in addition to the finance charges, they add service charge and some other cess charges which virtually increases the rate of interest by 1 percent per month.

4) If the payment is delayed by even a single day, the bank charges huge fines.

5) Withdrawing cash advance from credit card charges a service charge of up to Rupees 500 which is also very high and it is charged right from the moment when the money is withdrawn.

6) Every now and then, the credit card user receives calls from people claiming that they are from the credit card department and propose attractive benefits which subsequently appears to be false which I have perceived many times. When queried with the customer care people say that customer care people can not call to customers, rather can only receive calls.

7) In some retail outlets, especially in shops of electronic goods, the merchant charges an additional amount of 2.5  percent of the total purchase amount which is also quite expensive.

8) Finally credit card outstanding amount is also displayed in CIBIL profile of the customer which can affect his or her loan eligibility negatively.

For all these reasons, I recommend everyone not to procure credit cards from any bank it might be, get addicted to it and when one realizes, it might be too late to recover from which I am currently suffering from now.

I have a state bank of India credit card and I am using that card from last 2 year. I have never face any problem with this card but one time I have face the big problem.

suddenly I received a message on mobile around 9 PM than that was about the transaction form my SBI credit card. but that transaction was not in India it was from UK. the transaction around 9000 in Indian rupee. I was shocked and I called costumer care I told them about the transaction. they help me so early and cancel the transaction.

you should be careful always with your credit card. and now its good that you have to use pin when you will use your credit card.

Now days availing a  Credit card is very easy, if you are having a  salary account, or some fixed deposits in the bank or having a  good transactions, banks will offer you to have a credit card, although it is mentioned that this is free of cost and no annual maintenance charges, but there are some hidden costs like if you do not use certain amount in a  month or in a year then you will be charged with certain amount.

And as Credit card is a pre approved loan, so when ever you are in emergency love to sue the credit card. But if  your income is not enough to repay the used amount, then avoid using Credit card until unless it become too urgent.

But you can use your credit card for monthly utlity bills, mobiel/DTH recharge, filling fuel which generally you do by paying cash, as you get some days benefits to pay the amount with out interest, also you get some cash back or other rewards from your bank for using the card on regular basis.

Also do not forget to pay the dues on time to get a good score, as well as it maintain your good track record for future loans.

Few of us started to using credit card, but still many of us hesitate to use due to fear about the electronic system. We must start using the credit card, at the same time we must be discipline in spending. This will help to reduce the black money and tax evaders. Let us see why do we need to use Credit Card(CC)

Reasons:

1. Sales tax: ST is one of the important avenue for Government income, but not even 10% of retail sale is accounted. When you pay cash, they collect money including the service tax, unfortunately the most of the money never reached the govt account. Because they're using dummy bill book and eat those money. If we use credit card, this is accounted, they must pay the tax since it is accounted and settled through banks.

For example if you are going to hotel and spending Rs. 1000 for your food. They add tax 5% and collect Rs. 1050. Rs. 1000 only for hotel and Rs. 50 should got Govt kitty, but they pay 1/10 the money only because of cash payment help them to cheat sales tax with dummy bill, but can't for credit cart transaction

1. You pay the right amount: When your bill is Rs. 968, you never get change Rs. 2. It may be small amount, but if you calculate every Rs. 2 of your expense, it will be more than Rs. 500 per year.

2. Score Points: You get some gift through bonus point, don't see this is not possible, I used to get some sort of gifts like bag, tupper wear. One of my friend got TV, if he paid cash he could have spent more and get nothing in return

3. Discounts: I use SC Millenium card, it gives 2.5% cash back beyond the 2.5% service tax. I used to get at least Rs. 25 for every fill of fuel. If I spend Rs. 50000 towards fuel, I get Rs. 1250 as cash back.  Is it small money for you? During festival season, now a days shops offer 5% cash back offer(Croma kind of electronic shop). If you buy a TV Rs. 50000, you get Rs. 2500 return. Again you score you points too.

4. It is low Risk:  Carrying cash is always risk, but not credit card. We used to hear about fradulent activities about credit card, but now a days, you get SMS on your mobile

5. Bill Payment:  I get 5% cash back for my phone bill, for every Rs. 1000 I get Rs. 50 as discount. I spend Rs.10000 per year for phone bill and get return Rs. 500. Also I pay my telephone bill on the last day as electronc bill pay mode, so I need not go to pay my bill or worry about penalties.

6. Buy now pay later: I get 45 days time to pay my bills, now a days our saving account gives 4% interest rate. If you save Rs 10000 for every month, finally you get Rs. 400 as interest/year  from your saving. If you opt fixed deposit, same amount you gain more.

7. Competetive offers: You get cheaper money through balance transfer only with processing fee. If you use properly, you can manage your dept successfully.

8. It is green: You need not drive to pay your bills or ATM when you shopping, this will save your fuel expenses. It avoids many people physical work, so those resource can be used for positive way to develop the country. It saves paper, when you pay through electronic copy and automated bill payment.

9. Credit Scores: Now a days credit score become important to buy any home or car loans. They check your credit history, when you've good history, you get your loan easily.

10. Fake Currency: When you settle your transaction through CC, it avoids fake notes issue because settlement through banks. It avoids direct currency use. Life of currency increases. Now a days we used get fake note even from ATM.

We've such a facilities with CC but we are not make use of it. So start using Credit Card is wise decision for the country to avoid black money and also make use of the facilities better way for our benefits. When all of you start using, the system will grow better and strengthen our economy.

Note:

1. If you are not disciplined person in Credit Card payment, please change your behavior or avoid using  credit card

2. If you don't have control on your expenses, try to avoid CC

3. CC companies are getting commission, at the same time low risk for retailers.

Feel free to add/review your comments to make it better. Convey to your nears and dears too.

Thanks!