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  • Category: Miscellaneous

    What is your opinion of using credit cards. Good or Bad?

    We will see many nationalized or private banks try to issue credit cards even without our wish. The banks go on phone us that the credit cards offered to you is especially for you. Even a big bank like SBI also go on trying to issue credit cards. Once we apply for a credit card immediately within few days, the card will be despatched to home. They don't try to find the individual a retired person, a job holder or an earning member or not. Some of the big sites like Amazon, Flipkart, applied through these portals will give credit cards in association with these sites. Some companies give loans to buy goods on good discount in association with big onsite markets like Big Basket, Big Bazar, Jio Mart? By buying through credit cards many onsite markets give good discounts to the range Rs.200 and above. Do you think using credit cards good or bad in your opinion? What is the benefit of issuing Credit cards for the banks? Within a month if we pay back the loan there will be no extra charges.
  • #751969
    Money circulation will become more. Purchases will increase. That will make people go for loans. If you have to purchase an item earlier days we used to count the money with us and based on the amount we used to purchase. But when you have a credit card and when they will give you a facility of paying in equal instalments, people will go for more spending. When you are paying EMIs, the interesting part also is included which we will never notice. So banks will be getting better income in the form of interest. Bank has to circulate money. The more they circulate the more will be their profit. So they try and encourage people to go for these credit cards.
    We should be very careful when we use these credit cards. By any chance, if we are not paying the money by the due date, the amount of interest is very high. So we should think about the earnings and the expenditure and when we are sure that we can pay the amount without fail only we should go for using the credit card. A wise customer can use a credit card for his profit also.

    always confident

  • #751975
    I do not believe in the credit card system. as it is the inducement forced on the persons to make shopping and later charged with interest. Gone are the days when some credit cards bothered the people with offers and later persisted for early payment and even confiscated the items thus purchased through the cards. Now a days big shops are believing the customers and their credit rating on social sites were enough to give EMI and people are happy with that system. What I observed that people indulge in wasteful expenditure and purchase of items that are not required and thus end up using their credit limits as if the world is going to stop. During the pandemic many used the credit cards and could not make payment within the stipulated grace time and now facing the tune of high interests for sure.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #751977
    There was a time when credit cards were very much popular and people used them left and right whenever they went for purchasing some items or other such expenses. Many banks and credit card companies promoted their products by offering the credit card on a free basis that is without any annual fee and many people enjoyed that for quite some time but later these companies started to charge annual fee for those free cards.
    The credit card business became very competitive soon as many banks joined this. The biggest blow came to credit card business is from the debit cards where people could pay directly from their debit cards at the same moment when they do the shopping.
    If someone wants to use credit card then one should be having a good discipline and control on his expenses as well as paying the outstanding amount in time because if the payment is delayed then the bank or company will charge heavy late payment fees and that is the main source of income for credit card companies.
    Some people use it just for status symbol and show off purposes.
    Some banks are still offering zero annual fee cards to its customer and one can use that facility if one is sure that one would pay the outstanding amount in time every month. Otherwise it is a unnecessary liability.
    I am using credit card for last 22 years and I have not paid any late payment fee so far.
    If one is getting a zero annual fee card from ones bank and one is a disciplined spender then one can go for it.

    Knowledge is power.

  • #751980
    the Z generation of today can handle using the credit cards very wisely as they know how to get the benefit of cash backs and discounts to the fullest satisfaction. However, there are some of the same age group who borrow excessively through the credit cards and land in a soup. I do not have a credit card of any bank and I feel when I go shopping I might buy something out of my purchase list. In fact, I also use my debit card to the minimum extent.

  • #751988
    Credit Cards is not bad provided the same is used judiciously and in that case, it would prove to be a boon on the part of holders. However, there is also demerit of having such cards. Once we enter a mall for some purchase, we, not necessarily, ourselves but even our families might demand something which is not required now but the would have it for the future time. Some ornaments if liked by our family members would be purchased immediately thinking that these are affordable on emi basis. Such payments will not produce any financial strain. This is not the end again the card would be used for the subsequent purchase in the same month. If we don't put a curb on our spendings, we are sure to land into a financial mess. It would be a profitable venture for the bank issuing the credit card by way of their collection of huge interest.

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