MAKE YOUR CREDIT CARD PAY FOR YOU AND NOT VICE-VERSA
1. For maximum interest free purchases
If not urgent, plan high amount purchases for a day after the bill generation date
For Example, if your bill is generated on 15th of every month, then 16th is the BEST date to do big purchases, as the bill will be generated on the 15th of next month and you will get further 15-20 days to make the payment. It will give you a total breathing period of 45-50 days.
2. Get rewarded on big purchases
For high value purchases, see which card will fetch you maximum reward points.
e.g some cards give you one reward point per Rs. 100 purchase while others give you
up to 2.5 reward points per Rs. 100.
These reward points can get you free gifts to household articles to shopping
vouchers and even free air tickets.
BUT, have a look at the reward point (converter) catalogue of cards, because if gifts are not good enough or charge more reward points, then accumulating a lot of reward points on a particular card is a loss. Use other card, instead.
3. Balance Transfer
Always remember, banks are smarter than an average customer and will devise
schemes to trap unsuspecting customers.
For Example Headline will say ‘Balance Transfer on 0%, but there will always be
around 2% processing charges on the total amount.
Also, 0% scheme is usually given only for 2-3 months and you have to make the 5%
payment (minimum amount due) till you pay entire money, otherwise both penalty
and interest will be charged.
4. When you make payment
If you don’t pay the whole amount by Due Date
It only saves you from penalty, interest will still be levied
Interest is charged on whole amount till date of minimum payment
and
on balance amount for days till new bill is generated
your outstanding balance AND new purchases BOTH will attract interest
till such time as outstanding is cleared
5. Withdrawing cash on credit card
withdrawal charges ranging from 250-750 (varies from one bank to another) are
levied. So do this only:
-in case of grave emergency and
-when your friends/relatives have said no
Interest is charged from the day of cash withdrawal itself
*Remember, interest, penalty, processing fee and transaction charges are married to service tax and will bring in this partner along every time they themselves come...invited or uninvited.
Have a question or problem on your credit card? Mail it to me at mailnaveensoni@gmail.com and I will try to suggest you a good solution as soon as possible.
