Tips About Credit Cards
Posted on Monday, December 1st, 2008 at 4:04 pmJohn and his family were on the annual vacation trip to Darjeeling, a beautiful tourist spot in the east of India. After three or four days stay there he realized that the cash in hand would not suffice the expenses he has to make till the family reaches back home. Fortunately he had brought the credit card which a foreign bank had recently issued him. He went to the nearest ATM and withdrew the required cash.
Sunita, a BPO executive, was never interested in any type of credit card. But a call centre executive called her so many times that at last she agreed to get a credit card for herself. She did not know that she would soon have occasion to thank that sweet voiced lady on the phone who sold her that sleek plastic card. Her husband coming back on bike from his night duty was hit by a speeding vehicle and was admitted to the hospital unconscious. Sunita needed urgent cash. She went to the credit card ATM.
Thus presently the credit card has become a necessity. But it is necessary to use it very carefully, otherwise it can prove to be very costly. First of all it should be understood that the credit card has to be used at a time extreme necessity.
Nowadays there are a number of banks which are recklessly issuing credit cards as they give them a great return. The banks issue a card to a person even if he already has got one or more than one credit cards in his possession. A person goes on accepting more and more cards and soon a time comes when paying back the card dues becomes very difficult, if not impossible. Therefore, it is necessary to limit the number of credit cards in one’s possession. Some experts believe that one card is enough and two cards are more than enough. Never be in possession of more than two credit cards.
Sometimes, the bank sends you an add on card in the name of your spouse. Decline such a card and if the bank still sends it to you, destroy it and inform the bank about it. Make sure that you accept the add on credit card only if you really need the same.
Sometimes you may need to close your credit card. In such a case it is necessary to first repay all your dues on the card. Inform the bank of your intention of closing the card. The executive on the other end would try to convince you not to close the card and may offer you many things to desist you from the closing it. But be resolute in your decision. Sometimes even if you have told the bank about closing your credit card and have paid all your dues, they may still send you a bill for a very insignificant amount, for example, Rs 1.83. You may think that it is a very small amount and would do any of the two things: Ignore the amount or send, for example, a check of Rs 5.00.
Ignoring that small due may prove you costly as the bank will later charge you late payment fee, interest and hefty penalty. The amount would reach thousands of Rupees before you know it. So please do not ignore that small amount and clear it. As a second option, if you pay more than the amount, the bank would still keep you sending the bill. For example in the present case you sent a check of Rs 5.00 against the dues of Rs 1.83. The bank would send you a bill of -Rs 3.17. Which simply means that you have overpaid that much amount. But you must again contact the bank and ask it to either send you the check of the remaining amount or ignore it and stop sending you any bill in future. Please make sure that when you close a credit card and clear all your dues, the bills should stop coming to you. Because if the bills keep coming, it may mean that your card is still active.
Always read your credit card statement carefully. Sometimes the bank tells you that if you accept a particular offer, your annual fee will be waived off. You accept the offer but the bank includes the annual fee in its bill of the concerned month. In such a case it is necessary to contact the bank as soon as possible. Normally the bank reverts the fee.
Please make sure that you pay the credit cards dues in time. Failing to pay the dues promptly may entail heavy penalties. It is always better to keep your previous credit card bills. It is not mandatory but in certain situations becomes helpful. The credit card numbers are always 16 digits long. It is always not possible to memorize the same. Many people store these numbers and also the bank helpline numbers in their mobile phones. In such a case it is better to store these numbers in some other names so that if the mobile is stolen or lost no body is able to misuse them. Moreover, never store your credit card pass words in the mobile phones. Store all this information at some other and secure place as well.
If your credit card is misplaced or stolen, the bank should be informed with in 24 hours so that your card is blocked. You will be responsible for any purchases made by the card before the bank is informed about it being misplaced or stolen. After informing the bank, also lodge an FIR with the police. It is necessary from the point of view of security and to save you in case the card is misused by any criminal element.
Never divulge your three digit CVB number to any body. This number is written on the back of your card. Never provide your credit card number to any one online, particularly in response to any e – mail. Be careful while purchasing anything from a foreign company through credit card. (The End