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  • Category: Miscellaneous

    Credit Cards- Are they advisable for purchase

    These days online money transactions are given more importance instead of using physical money.
    There are many ways to do these transactions. Online transfers, transfer through Cheques, Debit card payments, credit card payments and paytm. All these transactions except credit card will do the transfer of money as long as you have money in your account. If there is no money in your account the transfer or payment will not be done. But the credit card is different. It will pay the money irrespective of money in your bank account till the limit of that card is over. That means you can make the purchases even though you don't have money.
    Sometimes this cards will make us purchase items beyond our capacity. Afterwards, we will be in trouble paying more interest and EMIs to the bank. So I feel as far as possible we should limit the usage of the credit card. Do you agree?
  • #610657
    Yeah, totally agree with you Dr. Rao, if we are poor in managing finances we should restrict ourselves from using Credit Card as it can put us in very deep debt and it will be very difficult to untangle yourself from that situation.

    But if you can use the credit cards wisely and manage multiple cards at the same time, it can reduce the financial burden on your shoulder. As for the initial 45 days, it offers interest-free credit and you can repay it during the next billing cycle and if used wisely it can help to grow your wealth as well.

  • #610666
    What I feel that if we have credit card in our wallet, we tend to go for shopping spree and may end up purchasing those which are not required right now and the bill would increase and that will build up pressure for payment. Normally I have seen that people with credit cards would go for more than one set or one pair of products and thus their extra purchasing power is got through the presence of credit card in the hand. One more thing, credit card purchases are always accompanied by commission on every deal and thus the credit card holders are at loss in the long run.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #610689
    Yes. agree with you. We use them only for online payments for regular bills and tuck it in when we are out shopping. Having to keep an eye on a tight budget is very difficult if we start using credit cards regularly, especially both husband and wife.
    It's a luxury that many of us find, is easy to acquire but at times difficult to payback when we go a spending spree.

    Today's shopping malls and online websites, I think are specially designed to get the customer hooked onto the display items easily. you just have to spend an extra minute inspecting a watch or a handbag, you'll have a store attendant smiling and encouraging you all the good things about it and the next thing you realise is, one more unwanted item added to our collection at home. I find it very useful to think that the cash may just be enough for regular items and keep the card for an emergency use, it has worked for me.

  • #610691
    I am one who uses the credit card very prudently. From my using credit card for the last many years, I have found it a very convenient tool. When we have the credit card n our pocket we feel very confident. We need not hesitate and feel desperate in not having adequate cash with us.
    After a few months of study y rial and error, I learned to use the credit card very wisely and prudently. It came to a stage that I was using credit card for most of my transactions.

    Day by day the safety is being at risk more than what it was earlier. The linking of Aadhaar too everything has made things very much vulnerable. After so many years very recently I faced a problem of an attempted fraud in my credit card. Luckily because I got the alert in time and I could take up with the card issuing bank without losing time, my card was blocked and further misuse prevented. Actually it was a test dose with a small token amount.

    But that has not dampened my spirit, and I had got a new card also.

  • #610704
    I agree with you Rao Sir, credit cards serve as an additional source of money, but people forget that the money which is given as extra, will be deducted at the end from our own pocket. Only those people should use credit cards, who are able to manage it, else there is no point keeping credit cards if you are paying regular installments and EMI's. Rather it increases the expenditure.
    Do what inspires you !!

  • #610705
    I am a person who regularly uses credit card. Having a credit card with sufficient balance always boosts up my confidence level. There is no harm in using a credit card provided you know how to use it wisely. I have been using my credit card for years and I have never paid a single penny as interest. I make sure I close my full dues before the due date. I keep aside sufficient money from my salary every month for my credit card. So I have never found it difficult.

    An advantage of using credit cards is you get certain offers especially for a particular credit card holder, loyalty points will get accumulated which you can convert into liquid cash. Also interest free installment plans for 3, 6 or 12 months are available with certain credit cards.

    I feel i is a good tool, bu it all depends on the person who is using it and how he or she is using and managing it. There are people who use many credit cards and have never pad interest. They take different card to get benefited from the various offers each card provides.

    One thing I agree is, when you have a credit card with you, you spending increases as it gives you the feel of having money always. If you can limit your spending, well and good.

    Regards
    Chitra
    "Do not give up, things might not favour you always"

  • #610706
    Holding a credit card is like possessing a big sum without any worry of theft or stealing or losing. We should use it prudently only when there is a requirement, especially when your bank balance is very low and debit card is unusable. I have only one credit card. I use it and pay the EMIs on due date and try to pay back the entire amount within the allowed time period.
    No life without Sun


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