How to use Credit Card Wisely

I have a simple formula that makes it very easy to track. I have multiple credit cards but only one bank account that i use to pay the cards. So if i want to buy something and don’t have enough balance in the account i don’t buy it. Also i pay off all the credit cards at least once a week. At this point the only reason to use the cards is to get the cash back, purchase protection and other offers.
 
princeoo7 said:
Normally I was not in for a cc but the discount is some good stuff which I would have enjoyed for before purchase but as I didn't had one and it feels very sad to ask relative for their card every time, I got the card.
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Did they send you one recently ?

I got an SMS saying my CC application was approved. HA! its just scam sms. Day later card arrives. I never applied for a CC

It was from my bank. Before you had to fill paperwork to be approved Now it seems they are sending it out first.

Another reason i avoided CC before was for security reasons. Preferred netbanking or bank transfer.

I used a CC many years ago when i was abroad and settled everything within a month. 0% interest. You have to be regular with that.
 
blr_p said:
Did they send you one recently ?

I got an SMS saying my CC application was approved. HA! its just scam sms. Day later card arrives. I never applied for a CC

It was from my bank. Before you had to fill paperwork to be approved Now it seems they are sending it out first.

Another reason i avoided CC before was for security reasons. Preferred netbanking or bank transfer.

I used a CC many years ago when i was abroad and settled everything within a month. 0% interest. You have to be regular with that.
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my story is a sad one for the process. My application was denied for stupid reasons which was not even justifiable and after rounds of branch they got it right until i received my card which was not the one I applied for but some other product and a zero missing in my limit :p so right now I have asked bank to at least fix the zero thing and after a year, I will move to other product or may be lender.

Reason for the cc is just the same thing, benefits of cashback, product protection which I don't know how it works. and most important, improving my CIBIL score.
booo said:
I have a simple formula that makes it very easy to track. I have multiple credit cards but only one bank account that i use to pay the cards. So if i want to buy something and don’t have enough balance in the account i don’t buy it. Also i pay off all the credit cards at least once a week. At this point the only reason to use the cards is to get the cash back, purchase protection and other offers.
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do the weekly payments of cc purchase help in improving CIBIL score ? I do understand the point of repayment as I also plan to do the same thing for the purchase.
 
If they are this incompetent at processing an application i wonder how you will fare with a dispute :nailbiting:

There's been threads here over the years of people getting the run around in that case.

This is yet another reason i got put off.
 
blr_p said:
If they are this incompetent at processing an application i wonder how you will fare with a dispute :nailbiting:

There's been threads here over the years of people getting the run around in that case.

This is yet another reason i got put off.
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That's the reason I am preparing for the worst but as I only intend to buy stuff which will not cross a large limit. it should not be an issue. some purchases are util bills like electricity which we eventually have to pay and so is not a part of habbit so not that worried on this part.
 
princeoo7 said:
do the weekly payments of cc purchase help in improving CIBIL score ? I do understand the point of repayment as I also plan to do the same thing for the purchase.
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In a way, yes. Because you never have missed or late payments as you would have already paid more than minimum payment for a specific billing period. I think these scores are scam because my cibil score was shit because of sbi credit assholes tagging illegal late fees. Then i left india :p
 
blr_p said:
Why are you getting a credit card in the first place ?
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Because unless you know the merchant and he offers you a cash discount, fees of the credit card is already built into the product price. So, either you are subsidizing purchase of others, or getting the fees + some benefits back via your credit card.

An example, on Amazon buying a Mac Book Pro worth 2.2L will either give you a 10K cash back via Amazon Pay Credit Card, or you end up paying even that to Amazon subsidizing others. Similar math can be seen across stores.

@OP
1) Some banks allow you to have a temporary increased credit limit, OR, prepay the excess amount to the card and then make the spend. Do note you may incur a small fee + GST.
2) I would suggest no more than 2K.
3) Amount is always reduced from your limit, never from your account. Your account and your card are two different entities. As far as possible avoid physical swiping of the card, card cloners can duplicate the card and cause problems, tap to pay, chip and pin are better.
I use Amex with merchants I don't know because of their good purchase protection.
4) Each bank has a different process. Getting another card while you have a a relationship is usually easier, if not, close, wait, apply.
 
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The biggest thing to remember when using any credit card: settle your full bill on time, every time. Set up a reminder in your calendar and you will be good to go.
Next: Credit card is what it says - credit - loan. Never buy stuff on your card if you can't settle at the end of the month.
 
singenaadam said:
The biggest thing to remember when using any credit card: settle your full bill on time, every time. Set up a reminder in your calendar and you will be good to go.
Next: Credit card is what it says - credit - loan. Never buy stuff on your card if you can't settle at the end of the month.
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What I do right now is buy the stuff. once the amount is reflected to the billing, pay it. don't know how it will work but I think at the end of march or april I will know if it have benifits or I should only pay before the settling date.
 
blr_p said:
Did they send you one recently ?

I got an SMS saying my CC application was approved. HA! its just scam sms. Day later card arrives. I never applied for a CC

It was from my bank. Before you had to fill paperwork to be approved Now it seems they are sending it out first.

Another reason i avoided CC before was for security reasons. Preferred netbanking or bank transfer.

I used a CC many years ago when i was abroad and settled everything within a month. 0% interest. You have to be regular with that.
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I did get a SBI credit card without even applying. When I checked with the particular branch manager he told that since I had a housing loan in their branch and based on my credit evaluation and cibil score they had approved the credit card based on his personal authorization. However he told that I am free to cancel the card and that there will not be any charges for that. I did not cancel it and kept the card as it was useful for discounts from shopping sites. I am still not convinced how a manager can approve a credit card without the knowledge of the customer and confused about how the system works.
 
technofast said:
I did get a SBI credit card without even applying. When I checked with the particular branch manager he told that since I had a housing loan in their branch and based on my credit evaluation and cibil score they had approved the credit card based on his personal authorization. However he told that I am free to cancel the card and that there will not be any charges for that. I did not cancel it and kept the card as it was useful for discounts from shopping sites. I am still not convinced how a manager can approve a credit card without the knowledge of the customer and confused about how the system works.
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they can do any thing. sales target bolte :P
 
Can I purchase good's exceeding the Credit Card limit when I have cash in account and can pay directly but instead of debit card want to have this transaction on credit card as it gives reward points and we can have the spending quota fulfilled as well side by side.
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You can go over your CC limit with some banks. I can guarantee this for SBI and from what I have read, It works for Citi. doesn't work for HDFC/Axis.

If you have CC limit of 50k and you buy something that costs 55k, You'll incur around ~5-800 INR in overdraft fees and it may effect your credit score.

A nicer way to do this is to transfer money into your CC account. So for this you can transfer 6K, Your CC limit will be updated to 56k and now you can buy that 55k thing with no over draft fees and as far as I can tell, No effect on your credit score. I have gone 8x over the credit limit on my SBI simply click card. My credit score is still pretty high and I have not had to pay overdraft fees.
 
blr_p said:
It means you are a good risk so its a no brainer for them to send you one in the hope of more business.
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good risk :P
ishanjain28 said:
You can go over your CC limit with some banks. I can guarantee this for SBI and from what I have read, It works for Citi. doesn't work for HDFC/Axis.

If you have CC limit of 50k and you buy something that costs 55k, You'll incur around ~5-800 INR in overdraft fees and it may effect your credit score.

A nicer way to do this is to transfer money into your CC account. So for this you can transfer 6K, Your CC limit will be updated to 56k and now you can buy that 55k thing with no over draft fees and as far as I can tell, No effect on your credit score. I have gone 8x over the credit limit on my SBI simply click card. My credit score is still pretty high and I have not had to pay overdraft fees.
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So if I have a 1lac limit and add extra 1lac as to the account in advance, will my limit become 2Lac ?
 
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