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Thread: Smart way to use Credit Card.

  1. #1

    Smart way to use Credit Card.

    Credit Card is need of today when Social Media friend are not ready for help online, it can turnout to be a very good friend. However a smart person can only use it wisely. Following are tips for smart use.
    1) Always check your monthly statement using transaction and payment history, available for you by logging in to your account. Chech that every transaction in monthly statement is duely recorded in transactiom history or every transaction entry in history is accounted for in monthly statement. Any mismatch is required to be informed to Card Company. If you are using it quite often, then every week you should check it.
    2) Use only 70-80% of credit limit, as use after that will reduce your rating.
    3) Only in rare case opt for EMI or Flexipay option, as its moratorium schedule is not available to you. So it may create confusion while checking your statement.
    4) Pay your dues before time and in full. If any EMI is accounted in Due then whatever less is paid is treated as default in EMI and penalty @18% in amount due, which is 216%per annum, if due is kept for one year, is imposed and credit rating too lowered.
    a) As per my information if a person has already taken
    (1) a loan of Say Rs2,00,000/- on Kisan Crdit Card and
    (2) made purchase worth Rs 2000/- in a particular month,
    and his Total Amount Due as per monthly statement is Say for example Rs5000/-
    in which loan component (Principal) + other charges including interest and tax on interest, if applicable, is Rs 3000/- and he/she pays Rs4000/- only then it is considered as Rs 2000/- towards purchase and Rs 2000/-then first of all interest and tax is considered as paid and remaining amount only towards actual loan principle and then for remaining default is on principle amount. So the penalty is for not paying the Principal amount due for the loan. It may vary as in VISA cards it is maximum 18%+ tax, of unpaid amount.
    As per my information, please check detailed rules of your Card company,
    when a Kisan Credit card is used for taking loan for agriculture then its insurance is also included in loan, because if you are capable of growing crop yourself then you would have not taken loan using Kisan Credit Card at all! Due to this insurance amount paid is treated as "Paid by Credit Card company" to the "Insurance Company".
    Now if a farmer has defaulted in paying monthly amount due for few months and his crop too is damaged then whatever claim is due to be paid to the farmer for crop loss is treated as claim of the Credit Card company who paid the insurance premium and loan to the farmer and remaining amount, if any, is paid to the farmer. So if a farmer goes on defaulting his monthly payment and then his crop is also damaged due to nature then from compensation received from insurance company first of all "All defaulted payments + Penalty on them" is first of all recovered and then Principal amount defaulted and then remaining will be paid to the farmer. So if a loan is taken on Kisan Credit Card, it is wise to pay monthly due on time and fully at any cost so that in the even of crop loss he/she can receive full amount from insurance company.
    5) Use of Card for online payment attract 5% charges(for amount exceeding some limit in case of VISA cards in India), so unless a discount of minimum 5% is offered it is wise not to purchase it. If you are purchasing/paying online a certain applicable amount each month then it turns out to be 60% per annum for paying by card. (Corrected as per YGuliya ji's suggestion below)
    6) Hide CVV of your Card, on the back of your card, using a small black tape and never share it. Take caution not to handover it to anyone. Hide the keyboard while entering your PIN on card swipe machine.
    Last edited by sandeepverma; December 4th, 2018 at 01:10 PM. Reason: Modified

  2. The Following User Says Thank You to sandeepverma For This Useful Post:

    sukhbirhooda (December 31st, 2018)

  3. #2
    5) Use of Card for online payment attract 5% charges,: This statement is 100% wrong

    Quote Originally Posted by sandeepverma View Post
    Credit Card is need of today when Social Media friend are not ready for help online, it can turnout to be a very good friend. However a smart person can only use it wisely. Following are tips for smart use.
    1) Always check your monthly statement using transaction and payment history, available for you by logging in to your account. Chech that every transaction in monthly statement is duely recorded in transactiom history or every transaction entry in history is accounted for in monthly statement. Any mismatch is required to be informed to Card Company. If you are using it quite often, then every week you should check it.
    2) Use only 70-80% of credit limit, as use after that will reduce your rating.
    3) Only in rare case opt for EMI or Flexipay option, as its moratorium schedule is not available to you. So it may create confusion while checking your statement.
    4) Pay your dues before time and in full. If any EMI is accounted in Due then whatever less is paid is treated as default in EMI and penalty @18% in amount due, which is 216%per annum, if due is kept for one year, is imposed and credit rating too lowered.
    5) Use of Card for online payment attract 5% charges, so unless a discount of minimum 5% is offered it is wise not to purchase it. If you are purchasing online @2000/- each month then it turns out to be 60% per annum for paying by card.
    6) Hide your CVV, on the back of your card, using a small black tape or never share it. Take caution not to handover it to anyone. Hide your PIN.
    Yoginder Gulia

  4. #3
    Quote Originally Posted by ygulia View Post
    5) Use of Card for online payment attract 5% charges,: This statement is 100% wrong
    Thanks Gulia ji for bringing in my notice, i have corrected my post accordingly by providing flexibility in it.
    Anyone is free to say it, if not supported by "what is right if this is 100% wrong".
    I may be partially wrong but my Credit Card statement is showing it and when ordering on Amazon this additional amount is added in amount to pay before ordering. Some vendors too charge 2%extra for even swipe for more than Rs 4000/-. Please quote the rules for no charges for online payments so that i can take benefit of your solid information.

    There are lots of benefits too, but if a person is not alert he may loose trust in Credit Card company. My purpose was to inform about precautions you need to take and mistakes one may avoid to use it better. Amazon is giving 10% discount during festival to bear its cost @5% otherwise one may hesitate for online purchase. As per my information.
    Last edited by sandeepverma; December 4th, 2018 at 01:07 PM.

  5. #4
    corrected.
    Last edited by sandeepverma; December 4th, 2018 at 01:04 PM.

  6. #5
    Corrected in original.

  7. #6
    Quote Originally Posted by sandeepverma View Post
    Thanks Gulia ji for bringing in my notice, i have corrected my post accordingly by providing flexibility in it.
    Anyone is free to say it, if not supported by "what is right if this is 100% wrong".
    I may be partially wrong but my Credit Card statement is showing it and when ordering on Amazon this additional amount is added in amount to pay before ordering. Some vendors too charge 2%extra for even swipe for more than Rs 4000/-. Please quote the rules for no charges for online payments so that i can take benefit of your solid information.

    There are lots of benefits too, but if a person is not alert he may loose trust in Credit Card company. My purpose was to inform about precautions you need to take and mistakes one may avoid to use it better. Amazon is giving 10% discount during festival to bear its cost @5% otherwise one may hesitate for online purchase. As per my information.
    I use credit cards extensively and hold cards of all the major banks in India. I never saw such charges while making payments on e-commerce platform. Online payment is considered as prepaid payment which is more convenient to e-commerce aggregator than cash on delivery orders.There is no point for such charges for online payments. Please check with credit card provider for the clarification. I firmly believe that Amazon doesn't levy any charge for credit card payments. I also use amazon prime services. The only nominal charges they apply sometimes for scheduled delivery not for normal orders. In some cases, when product is listed on global store on amazon.com then they add the custom and delivery charges (from US to India) for that product on payment page. That's the only possibility for additional charges other than MRP. Again, credit card payments charges is not applicable on such order as well. I would suggest to seek clarification from Amazon and card provider both.

  8. #7
    Recently i paid electricity bill using Amazon Pay to avail the offer of cash back Rs10-1000/-. I was refunded about 5% of amount paid by me? It may mean during offer period such fee <Rs1000/- is refunded!
    Even if a Prime member is entiltled for free delivery. In exceptional cases the applicable charges are about 5% of amount paid and added at the time of payment?
    However i welcome your suggestion to confirm it from Amazon/Credit Card company instead.

  9. #8
    Quote Originally Posted by sandeepverma View Post
    Recently i paid electricity bill using Amazon Pay to avail the offer of cash back Rs10-1000/-. I was refunded about 5% of amount paid by me? It may mean during offer period such fee <Rs1000/- is refunded!
    Even if a Prime member is entiltled for free delivery. In exceptional cases the applicable charges are about 5% of amount paid and added at the time of payment?
    However i welcome your suggestion to confirm it from Amazon/Credit Card company instead.
    Never,
    Amazon doesn't add any additional charge while making payment irrespective of mode of payment. I am 200% sure about this.
    I have a fine sense of the ridiculous, but no sense of humor.

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