It has been a long time since I posted here. Always planning to post a good topic, but get stopped somewhere like no access to wordpress etc… But this time i don’t want to give a chance for that. I have started typing this in my Notes page in outlook.
Few minutes back i was browsing to a forum reading about some credit card (CC) grievance. I am using a Barcklay credit card for about one year and six months. I always use credit card as a tool to track my expense and in some cases to avail discounts for purchase if any (After clearly understanding the terms and condition). But I have never used CC because there is an offer.
This post will be on my findings and learning on using a credit card. I will term this as the best practice of using credit card.
1. Never buy something because you have a credit card and you can pay the money back after getting salary. Before using a credit card for purchase, make sure that you have cash in back account to repay it. CC can be used to tack your expense. I am not sure if many will do this. But it is more effective.
2. Link your credit card to your net banking bank account so that payment can be done through net banking. Came to know from a forum that in most cases check payment is taking approx 7-8 days to get cleared and some banks charge you extra for cash payment in Banks. ICICI is doing this. Happened to my close friend last week.
3. After purchasing, transfer the money from bank account to Credit card ASAP to avoid some cases like specified below. Some banks charge you interest for not swiping your card in their bank EDBI. Earlier cash payment will avoid or reduce the interest. This option will be convenient if credit card is linked to Net banking account.
4. It is a good idea to remember the three digit CVV number and remove the CVV no from credit card back to avoid possible misuse. As you will know online transaction can be done with 16 digit credit card no and CVV no.
5. Always collect the receipt after swiping the card, retain it at least till you get the bill and verify with the bill.
6. I have seen some merchants making note of credit card no after swiping. I guess this should not be done. There is a possibility that the merchant have noted the CVV no when swiping. Possible misuse with credit card no and CVV no.
7. Never give out credit card no and CVV no to anyone. I have read some stories where people used to get a call stating that they are from Credit Card Company and there is a misuse on the credit card. They would say that they need the CVV no to revert the misused transaction. My question is if they are calling from bank, why they need to CVV no to revert or cancel the particular transaction? They will have all the information in records.
8. Make your payment well before due date. I came to know that Credit Card Company will list the defaulters name in CIBIL (Credit Information Bureau of India) if the bill is not paid for more than 150 days. If name is listed in CIBIL, Listed person will not get any loans from any bank and it will not be easy to remove the name from the list.
Above all these common stuffs like signing at the back of credit card etc… have to be followed. More importantly read the terms and conditions supplied with card. It will clearly tell the charges applicable. A credit card can be of more use and can sometimes reduce your expense to a small amount but clear understanding and using it accordingly is must.
Finally posting it afte 4 days of preparing this. Hope this helps..
Jegadesh sankar 