Money is a good servant but a bad Master

This is the generation of Plastic Money means Debit cards and credit cards which are acceptable in all over the world and quite easy to use. But credit cards are more useful and acceptable than debit cards especially in India.

But Credit Cards should be used very carefully and smartly to avoid any mental and financial tension. Credit Cards are not the bad thing at all which some people’s think but rationally use them to avoid any financial misery. Here are some tips and advice how to use the credit cards.

1-Use Credit Cards:-Use your credit cards in all the expenditure like any travel reservation, insurance premium, paying any subscription or membership fees, online purchase etc. by using the credit cards you will get all the records for your expenditure and you will also get a free period to circulate money which is very handy for now a days & save a lot of botheration.

2-Spend Conscious:-Sometimes paying with credit cards leads to spend overly which will trouble at the end of the month paying bills of cards. So it is advisable to purchase with the credit cards consciously.

3-Pay Credit Cards bill on time & fully-Be cautious pay your credit cards bill on time means if the last date is 20^th you must pay it up to 17^th as paying the bill on last date may occur missing the date so it is advisable to pay the bill on time and pay the bill fully to avoid any disputes of late charges. If any emergency make sure to pay at least the minimum amount due and when you have money immediately pay the full bill of credit cards.

4-Don’t have many cards:-Don’t get many cards even if they are free for life. Having many cards has the more risk factor of stolen or anything and payment mechanism will be nothing if ever there is an error for payment of credit cards. So it’s advisable for having one or maximum 2 credit cards.

5-Don’t borrow on credit cards:-Don’t ever borrow on credit cards. Credit cards are not a source of extra money; they are a tool to use more efficiently your exiting money. If you are going very short of money take a personal loan instead of using credit cards to borrow.

6-Credit Limit:-Try to have a credit limit you are comfortable with. Don’t have a credit limit which you don’t require. Having high credit limit leads to high level of risk of unauthorized use of cards. So it’s advisable to have optimum limit of cards which you use in 1.5 to 2 months not more than this. Always reject the company proposal to extend the limit of credit cards.

7-Terms & condition:-Read carefully complete terms and condition of the company for credit cards and have a copy with you of terms and condition.

8-Remember Income tax:-Always remember the income tax department while using your credit cards so use it carefully and for your family only. Don’t use it for friends etc. If the annual spending is more than 2 lakhs you need to be clarify in your income tax return.

9-Don’t pay Surcharge: - The practice of asking for credit card surcharge is quite rampant in India particularly in case of consumer durable shops. If merchant establishments demand a surcharge for using your credit card, never make a transaction and report it to the credit card company because as a general policy, vendors are not allowed to add a surcharge to credit card purchases.

10-Don’t run on cash back: - Don’t run on cash back which may leads to higher spending. Just think of them as bonus nothing more.

Some tips for Safety of credit cards:-

1 Erase the CVV number:-Use this tip. Erase the CVV number which is on back side of credit cards mostly of 3 numbers. Erase it from the credit card and keep it remembers. If you can’t remember write it some very important paper which you have always in your mind. It will help avoiding the unauthorized use of the cards.

2-Sign on the back of the card:-Do the sign on the back of the card immediately when you receive it. It will help avoiding unauthorized use of sweeping the cards on manual shopping.

3-Payment on the net:-Don’t use the public computers for online payment with credit cards. Also make sure you are paying on the website is not a fraud. Although the government has issued an extra level of authentication for credit cards, remember the password and don’t share with any.

4-Keep some information in hand:-Keep some information like credit card number and company helpline number in hand as in emergency you can call and stop the card immediately.

5-Reprt the card lost immediately:-Report the company if your card lost immediately. It will leave you with minimum risk.

6-Statements:-Always read your credit cards statement every month carefully. It will help some little fraud going on your cards.

7-Other Precaution:

a) Keep a watchful eye on your card every time you use it for making payment and have it returned quickly.

b) Never respond to emails, phone enquiries or websites that request you to provide credit card information.

c) Notify your card company in advance in case of change in your address.

d) Don’t lend your card to anyone.

e) While traveling, carry only the credit cards you will require and put all others in a safe place.

f) Credit card PIN should be memorized. Never write it down.

g) Never carry all your cards in your wallet, in case you have more than one.

h) Destroy receipts, charge slips and any other documents which contain your card information instead of just throwing them away.

i) In addition to the hard copy of your monthly statement which you receive via courier, ensure that you also receive statement through email. Anyway, if your credit card bill doesn’t arrive in time, get suspicious and contact customer care.