Recently, I took my second credit card. The first one I was using since a long. My bank told me this is very convenient and cheap. I tried to found the reality through my own recearch. What I found and what I am realising are just hear in a brief.
credit cards are available aplenty everywhere now a days and with every major banking firm, everyone has an appetite for one. The cash-free cult has already acquired a huge following all over the globe, and even more so in India. The trick of choosing a low cost credit card that has a series of advantageous options such as cash back and others is not at all easy. Spending money wisely and correctly through cheap credit card deals is something not many clients are aware of. And this fact is exploited to the hilt by the banking firms to their advantage.
Choosing the cheapest credit card is not often easy. This is because even if you research and determine a low cost credit card that has low interest rates and cheap interest APR, your spending habit might just do you in. This is because even with cheap credit card rates, if you mindlessly spend your money as if it was doomsday tomorrow, the whole purpose of the advantage of low cost credit card processing is lost on you. As you pay off the low interest items on your recently-bought list, the high interest stuff eats away at your bank balance. Therefore, it is as important to check it out whether the charging methods of your credit card firm fit your spending style.
Moreover having different cash back options available at your beck and call should be one primary option that these low cost credit cards must provide you with. The fact that most credit card companies default back on the cash back option is a potential cause of worry for all clients. Thus you will gain an upper hand in the cheap credit card deal only if you are absolutely well-versed with the array of cash back and other options provided to you by the firm.
The option of lucrative offers such as valuable points of fuel or grocery reward programs should also be considered while considering cheap credit card rates. This is because whilst you might lose out on different offers that come with more high-interest credit cards, such basic reward programs will more than compensate the loss.
Usually, low cost credit cards both in India are more about tall claims than reality. Hence, you as a potential client must keep in check the history as well as the track record of the credit card firm or banking organization that is dealing out cheap credit card interest et al. But above all, the lowest of all interest rates and APR rates will not be able to help you gain anything if your spending methods are not in sync with your actual income and lifestyle.
When shopping for credit cards get to know all the details, especially the fine print ones which one tends to ignore. Study its terms and costs for the best credit card rate. If you are looking for a no-frills, low-rate card offer, theres no need to pay the annual fees. Avoid cards that charge them. Many credit card rewards are given like air-mile credit card and some super high-end prestige cards charge annual fees in exchange for rewards and perks and services. Weigh these credit card offers carefully.
The best credit card interest rate is the one which is, obviously, the lowest. The lower the interest rate, the less money you will pay when you carry a balance. If a card comes with a super-low introductory rate, find out how long will this rate last and will you be able to pay off your card balance before the teaser rate expires. Use a low-interest rate credit card to make high-end purchases.
Precautions which helps against credit card fraud is listed as follows:
1.Ensure that you have received your credit card in sealed condition.
2.As soon as you receive your card, sign on its back.
3.Check your cards periodically to ensure that none are missing
4.Regularly monitor your account either from call centers or on the internet.
5.Subscribe to email/mobile alerts to monitor your card usage.
6.Ensure that wherever the card is presented it is swiped in your presence.
7.Keep track of your transactions, when you are traveling abroad.
8.Preserve the PIN and the card account number in a confidential place. .
9.PIN number should be memorized.
10.All records such as copies of receipts, airline tickets, travel itineraries, etc., should be destroyed.
11.Never share PIN with anyone.
12.Cancel all inactive accounts
Report credit card fraud or for lost/stolen cards immediately to the issuer.
The IT Act and Rules 2000, provide penalties for hacking of computer systems as a credit card fraud help to the masses. The RBI has formed the CIBIL in collaboration with Dun and Bradstreet who will maintain the records of all wanting to avail of finance from credit card companies and banks in India
