Don't just go & opt for NO COST EMI using CREDIT card. CREDIT CARD EXPOSED

1. When to have the CREDIT CARD to keep with you.?

If you know there is a monthly bill that has to paid on regular basis then only start using the Credit card. Never use it for EXTRA buy, if you do it make sure you pay it on or before due date. 

There are cards whose yearly charges gets waived off if your yearly or half yearly bill is more than X amount. This is why I mentioned the first line

After the bill generation bank will give an option to pay the MINIMUM bill on or before due date ( Let say usually if bill amount is Rs-25000, bank will ask to pay minimum pay of Rs- 3200 by due date), sounds delicious right. And that the trap. BEWARE of that. Always pay the  bill amount in full. Or else they will charge interest on the remaining.

2. Is it good to withdraw money from ATM using Credit card..?

Never ever do that, unless it is extremely urgent. From first day on-wards bank will charge interest and its more than 19-20% overall.

4. NO COST EMI is a trap- how extent its true?

Did you ever checked the credit card bill after purchasing any item using NO COST EMI. Most people will say no. Let me clarify what are the charges associated with the no cost EMI.

Let us say, Your Phone cost 12000

With No cost EMI it will say 4000*3 and no interest will show up in the shopping site. But the twist is the bank will charge Processing Fee for that , GST on processing Fee, then interest on the EMI amount plus GST on the interest amount and this goes on for the entire period. So if the period amount and the EMI amount is high, higher will be the charges. Thus though it looks like NO COST EMI. Its not.

5. Is it good to go with SMART EMI option provided by the bank on large credit card bill...?

Actually this is an option given by the bank to make customer to pay portion of  the bill comfortably. But unless its very urgent do not opt for SMART EMI option. Because that is again chargeable. And the charging cost would be normal EMI charging.

6. You must have received call from the bank for LOAN (Home Loan/Personal Loan), What you should know before taking loan ?

Actually such type of phone call loans comes up with many lucrative offers. But the truth is please ask for details what is the actual rate of interest and what is the GST charges  and all. Better to take informed decision rather than uninformed.

Also ask what will be the minimum and maximum tenure to back the whole amount.

Ask what will be the overall amount I have to pay if I want to pay back the whole amount after 2 year including GST.

Also ask what if I wish to pay the whole amount withing 36 month but after 11 month I want to the pay the whole amount in full. Can we do that. Many insurance company don't provide such option. Hence ask for that.

7. Biggest Benefit of CREDIT CARD

It comes with tonnes of lucrative Offers. Carefully choosing will give you 100% benefit which you wont get anywhere.


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