- Most of the cards allow you a minimum
period within which you can pay your bills. For availing the
credit for that period you are not charged any interest.
Thus, if have surplus funds lying elsewhere in account, you must
always ensure that you pay back the full bill before the 'due date',
so that no interest is payable by you.
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- Most of the Credit cards require a minimum
amount of the outstanding bill to be made by 'due date', and failure
to pay this not only enhances the interest charges, but also a penalty
is levied upto Rs.100/-. Therefore, it is necessary that
you keep track of the 'due date' so that you can either pay off the
full amount of the bill or at least pay the minimum amount required
under the terms of the credit card.
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- If you can plan your shopping, it will be
best to make purchases around the time of billing date so that you can
avail the facility of credit for the maximum period.
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- The interest charges on the credit taken
through Credit Cards either in the form of cash or purchase of goods
is one of the highest in the banking sector. Although, the
interest charges on personal loans or consumer loans have come down
drastically in last few years, the credit card issuing agencies are
still charging anywhere between 24% to 36% p.a. (they claim to be
charging merely 2% to 3% p.m.!!). Therefore, in case you
wish to plan to buy a product and pay in installments spanning over
say 1 year or so, it will be good idea to avail a personal loan than
go for credit card shopping.
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- Some Credit cards give you reward points as
and when you make use of the same. Therefore, for costly
shopping you should always opt for Credit Card shopping even if you
have surplus funds available with you at that time. This
will not only ensure liquidity for longer period but you will be able
to earn those extra reward points which can be redeemed for gifts etc.
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- Some people say that cards issued by public
sector banks are most useful as they are slow in demanding money due
to less computerization / inefficiency. Thus, if you wish
you can earn extra credit days by opting for credit cards issued by
public sector banks. However, you may suffer on account of some
other services.
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- You should keep on looking for the special
schemes launched by the Bank whose credit card you hold.
You may be able to earn some extra reward points or may get those
extra discounts for certain shopping.
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