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Credit Cards

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Credit Cards are good (and bad) instruments and hence they have to be used carefully.

Banks were liberal in issuing credit cards and this is making individuals to apply and get multiple credit cards.

Having credit card makes you liberal to spend more and more.

While most credit cards issuing banks do not charge you for the credit card, they just want for you to make a mistake - the mistake of not paying on time.

The first best thing one can do so as to not lose focus on your credit card spending is to not to take multiple credit cards.

In fact, one credit card with decent credit limit is sufficient enough.

So, focus on scaling down the number of credit cards gradually.

Then, use the credit card judicious.

Use your credit card to pay / buy important things but repay the bill on time.

There are so many essential things for which you can use credit cards!

For example, you can use it for groceries at local shopping malls.

Then you can use it to pay your insurance premium online. etc.

Plan all your large amount expenses well in advance and use the credit card to buy them.

Use online festival offer seasons to buy durables.

For instance, I would buy computer gadgets such as laptop, printer, keyboards and mouse sufficient for the next one year online during the offers season.

Think twice when you swipe the credit card.

In fact, be ready for the bill amount in your savings bank account at the time of using the credit card itself.

When the annual fee is charged, ask the credit card company to consider your credit card usage and waive off the annual charge fee.

If they say waiver is not possible, tell them to cancel the credit card.

There are so many companies that offer free credit cards.

Take a credit card from the same bank where you have your savings bank account.

Using net banking, give a standing instruction directing the bank to charge your savings bank account for full credit card bill repayment on bill date or on the last date of the credit card bill due date.

This way, you need not have to worry about paying credit card bills on due dates. Bank will automatically debit the full bill.

In fact, you need not have to wait that long.

If possible, consider repaying the total credit card bill amount as soon as the amount becomes due. i.e as soon as the credit card bill is raised.

Using credit card and then repaying it on time is important to improves your credit score.

In future, when you want to go for a loan, banks check your credit score.

If you dont have a loan or a credit card usage, there will be no score, which is also bad.

So use your credit card to make meaningful purchases but pay before their due date.

Switch On / Off

Some banks (such as Kotak Mahindra Bank) provides facility to Switch On / Off the card.

This is a useful way of temporarily disabling the card when you do will not be using the card briefly.

This feature will definitely reduce credit card security related worries.

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