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  • Category: Miscellaneous

    Is it good to have a credit card?

    I have a good paying full time job and I invest a small amount of my income in SIP.
    Now I am receiving calls from my bank to apply for a credit card.
    My mind voice says why to borrow from bank if I can pay for it. In case, I cannot afford it I will save money for it and then buy it.
  • #701412
    If you are a disciplined spender and have the will power not to spend on impulse, then you need not worry much about keeping a credit card. It will give a self confidence while going out on travel or purchase. But you have to be very careful in spending and not to spend on unnecessary things.
    Keeping a credit does not mean you are borrowing right now. Credit card will be a convenience in many situations especially when you make your utility payments online.
    However if you do not intend to spend with credit card and the card has some fixed charges even if you do not use it, better not to take it. You can go through al details about the card, especially the charges- expressed and hidden, their billing cycle, and the interest per month and per annum rates etc. If those charges are not high, and some small amount only, then just take a credit card with very minimum credit limit. Otherwise if you feel it may turn problematic later then don't take the credit card, but just have a debit card which will also help you at times.

  • #701414
    I am a disciplined spender. I do not buy only because I want to buy, first I check that I can afford it not or I really need it. I always try to keep away from unnecessary spending and borrowing.
    Yes I think credit card will be helpful in paying utilities bill.
    For fixed charges they charge Rs.500 as annual charges.

  • #701430
    Credit card may be beneficial for you if you don't want to make too many small transactions from your debit cards or net banking for day to day transactions like recharge, shopping etc. Or in shops and malls. You can easily pay by credit card and pay the credit card bill at the end of the Month. But you will have to pay the credit card bill within due date without fail to avoid additional charges. If you are paying credit card bills on time, I think it is more convenient than using a debit card or net banking. Further, It also save account from fraud because you will do multiple transactions using credit card and the card limit is already fixed. Take a small limit credit card.

    I also found it useful as I can track my transactions in a month just by the bills of my credit card otherwise I have to check my account for it.

    Further, one more advantage of it. Suppose, if you are paying insurance premium online and the payment failed in between. If you have paid through debit card. That particular amount will get stuck for many days. While in case of credit card, if the amount from credit card get stuck, still you have option of debit card.

    In some credit cards annual fee get refunded in the form of some gift vouchers.

    I found credit card beneficial. But never miss the due date for paying bills. Otherwise fines are very high.

  • #701452
    A credit card will be good if you have good spending habits. But a credit card will harm spendthrifts. I have been using two credit cards for almost 20 years. I was never a defaulter. I use my card regular for payments and I pay the amount when it is due. That way I am getting all purchases on credit for 30 to 45 days. Whatever is the due amount I will pay before the due date and I never opt for EMIs. But if we purchase unnecessary items and go for EMIs payment to the credit card companies we will end up in paying interest.
    When we have to purchase some items urgently and there is no cash with us these cards will come in handy for us. So it is good to have a card and use it when it is absolutely necessary is good. You can save some money also some timed if you use the card for certain purchases, you will get some incentives.
    It depends on the individual. How intelligently we use the card is in our hands. So if you have the control on your spendings you can definitely go for a card.

    drrao
    always confident

  • #701458
    Nowadays the credit cards are coming with multiple benefits and one can take advantage of that. If you have a good source of income and are not extravagant by nature, you can have a credit card to enjoy the benefits of discounts, cash backs, etc associated with the credit cards. If you manage a decent bank balance, many banks are offering free credit cards, that it without any yearly charges. So, if you own any such card, you can shop with it, get discounts and then pay the credit card bill at the month-end.
    Padmini

    Living & Learning- simultaneous processes!

  • #701459
    Credit card was much popular earlier but now due to the availability of debit card with each and every person there is not a real need for credit card. You can pay from your debit card everywhere where earlier you were paying with your credit card. Still one can go for credit card as that has a varying repayment period of 20 to 45 days depending on when you spend the money during your monthly cycle of credit card. If you keep a track of your spending then you might not default in paying the bill and would not pay any penalties. Please note that the credit card companies make money by the penalties collected from the default in payments. Other than they the credit card would charge an annual fee of at least Rs 500 and that is the fee for that convenience of buying today and paying the money later.
    Knowledge is power.

  • #701464
    If you are a spendthrift, don't think of possessing a credit card. If you have a regular income, you can hold a credit card for use in an emergency. What is important is the regular monthly paying back of the sum taken without fail.
    It is good for the good, and bad for the bad.

    No life without Sun


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