Skip to main content

Multiple CREDIT CARDS

 

Credit cards have become a part of life for most individuals. Obviously, they come with benefits. However, if used wrongly, the cardholder can also land up in trouble. Huge number of cards is one reason why most cardholders face problems. People keep adding cards as getting a card is very easy, especially for those with a regular income and a good record. This is one stage where an individual has to be alert: they need to be selective in their choice of a bank, as well as the total number of cards. With six to 10 cards, even managing the details becomes a problem. Here are a few areas that need attention: a little care can make a big difference.

PAYMENT

There are several benefits touted for using multiple cards. One of the biggest is the credit period for repayment. This can be done by using the card that has just started its credit period. For example, if the billing cycle for one card is from the 1st to the 30th of the month, with the payment due date on the 15th of the next month, and for the other it is 11th of one month to 10th of the next, with the payment due on the 25th, then an expense on the 12th should be routed to the second card, where the payment will be due after 45 days.

The problem, as the number of cards multiply, is a wave of dates when the payments have to be made. Remembering the card used and then the due date is difficult, especially when there is no specific method in this usage. If there are five cards on which payments come up, say, on the 15th, 17th, 20th, 23rd and 25th of the month, making the payments is going to be more troublesome than completing the expense. There is danger of a missed payment too. If this happens, the charges in terms of the late payment and even interest could wipe out the entire benefit that might have been generated through the use of different cards. You might be potentially saving Rs 100 on getting the largest credit period but one misstep can set you back by Rs 500-700.

BENEFITS

Multiple cards could destroy benefits that are linked to usage of available credit line. If there was a certain limit, which qualifies for additional benefits in terms of points or other preferential service from the card issuing bank, it could disappear when spread across various cards. An expense of Rs 75,000 on a card during six months can put you in a preferential category, but the same expense distributed among five cards would leave you nowhere. A small savings by using multiple credit cards could be offset by the fact that the spreading of the amount will lead to a situation where the person is not able to redeem his card points anywhere. So, if a card holder was getting 1,500 points for expense on a single card, spreading this across four cards could result in 500, 400, 300 and 300 points, respectively, which might not be enough to get any meaningful redemption gift, as most of these could be starting at 650-700 points and above. This angle has to be taken care of.

LOSS

When there are many cards held by an individual, keeping track of what is happening with these is also difficult. There are two main areas that will lead to a disadvantage for the individual. Under the first situation, if there are charges or some other details that are to be changed on the cards, it could become a paperwork nightmare. If a person has a changed telephone number, communicating this for fivesix different cards and ensuring this is updated can be tiring.

Also, if one of many cards is lost, it might not come to the notice of the holder. This could lead to time going by during which there might be misuse of the card. This would be less likely if an individual held less. Keeping the number held in check ensures smoother handling.

Popular posts from this blog

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now