Convenience:
The biggest benefit of credit cards is the convenience offered by them. You don’t need a baggy pocket or carry a cheque book around while using them. In addition you don’t need to hassle getting travelers cheque or need foreign currency with those visa and master card holograms on infrared contactlenses. Popular credit cards like Citibank and HSBC have around 30 million and 18 million establishments worldwide respectively. Not only this, your plastic money is also handy at department stores, hotels, hospitals, restraunts, airlines, petrol pump etc.
Free credit period:
Well when it comes to credit cards, one has to fetch the benefits rather then expecting that they would be given to you. Same is the case with your free credit period. Pay back period varies from 42 days to 52 days depending upon card to card. But if you fail to pay within the period the whole concept of the free credit goes to dump. This is because you are not only obliged to pay interest for the period past 52 days but for the whole grace period as well.
So, if you really want to enjoy interest free credit pay all your outstandings before the due date.
Cash advancement facility:
Your credit card also acts as a money lender by giving you access to cash that can be withdrawn from ATM, Authorized merchants and Banks. Different credit cards provides you different cash limit. Although they give you an easy way to approach cash at any time, the usage of this facility should be kept limited as they attract fee and finance charges. Some of the cards even give you additional facility like transfer of fund to the issuing bank’s current and saving account.
Internet and Phone banking:
It is very important to keep a track of your spending specially in the case of credit cards. Through internet banking you can view your credit card transaction, download statement, Redeem reward points, all at the click of button. Not only this, you can even communicate directly and privately through secure online messaging. If you are in the situation where you cannot access your computer than phone banking services act as an added benefit. For using the above two facility, you are given a unique identification and a password or pin in the case of phone banking.
Extended Credit Facility:
When it comes to paying back most credit cards these days give you flexible options. Let’s say you are not in the condition to pay the full amount before the due date but you still want to enjoy the credit advantage through the grace period, you avail the facility of extended credit. You can do this by paying a minimum of 5 % on due date and settling the unpaid balance later at a finance charge around 3.1%. The service charge on this is as low as Rs.100 trick cards.
Balance transfer facility:
This something very important you can use to your advantage by saving on interest you pay. The extended credit facility is not something provided by all the cards but you have to look for the one that does. Under this feature you can transfer your outstandings on other credit cards to the one with the above feature. By doing this, you can enjoy an extended grace period and lower interest rate. The interest you pay usually depends upon the agreed pay back period and can go as low as 0%for 3 months term.
Some credit cards go as far as giving you balance transfer facility on EMI. Giving you a lower interest with a principle divided in agreed installment.
Bill Payment:
While credit cards pleasure your shopping they also let you pay your utility bills on time all you have to do is set a standing instruction with bank to pay your bill month on month.
Reward and goodies:
To make the game more interesting most credit cards give you reward points on your purchases. Although it is something to trick you into spending more, it’s a real perk if you a genuine high spender. Sometimes you even get attractive deals like petrol surcharge waiver or merchant discounts. It’s always better to choose a card that rewards according to your needs.
You do not need to be real calculative but a little smart to be using this piece of plastic to your benefit. But if you go crazy –your goodwill can turn you bankrupt.
When it comes to paying back most credit cards these days give you flexible options. Let’s say you are not in the condition to pay the full amount before the due date but you still want to enjoy the credit advantage through the grace period, you avail the facility of extended credit. You can do this by paying a minimum of 5 % on due date and settling the unpaid balance later at a finance charge around 3.1%. The service charge on this is as low as Rs.100 trick cards.
Balance transfer facility:
This something very important you can use to your advantage by saving on interest you pay. The extended credit facility is not something provided by all the cards but you have to look for the one that does. Under this feature you can transfer your outstandings on other credit cards to the one with the above feature. By doing this, you can enjoy an extended grace period and lower interest rate. The interest you pay usually depends upon the agreed pay back period and can go as low as 0%for 3 months term.
Some credit cards go as far as giving you balance transfer facility on EMI. Giving you a lower interest with a principle divided in agreed installment.
Bill Payment:
While credit cards pleasure your shopping they also let you pay your utility bills on time all you have to do is set a standing instruction with bank to pay your bill month on month.
Reward and goodies:
To make the game more interesting most credit cards give you reward points on your purchases. Although it is something to trick you into spending more, it’s a real perk if you a genuine high spender. Sometimes you even get attractive deals like petrol surcharge waiver or merchant discounts. It’s always better to choose a card that rewards according to your needs.
You do not need to be real calculative but a little smart to be using this piece of plastic to your benefit. But if you go crazy –your goodwill can turn you bankrupt.
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