Skip to main content

Credit Cards Overview

 

 

Credit card is a very convenient option to make payments for goods and services that you may require on a day to day basis. Most shop keepers or service providers  will not charge anything extra just because paid by credit cardand not in cash. What's more the credit card company will give you a free credit period after which you have to pay off the full amount. 

 

Free credit period is not available on cash withdrawals and interest on such cash withdrawals start from the day of withdrawal till payment date.

 

Off course this financial magic is explained by the fact that most shoppers shop for higher amounts when they pay by credit card than if they were paying in cash.

The magic works for you only if you make full payment of the entire 100% amount due on the credit card on the due dates. Almost all credit cards allow you to pay 5-10% of the amount due as minimum payment and make the balance payment later. This is called rollover facility. But this rollover facility comes at a steep interest cost that can be as high as 55% p.a. Also if you choose to use the rollover facility the free credit period granted to you is withdrawn and you will need to pay interest from the day on which each payment was incurred.

What is a Credit Card?

A credit card is a plastic card issued by a bank or a financial instituion to its customer entitling the customer to buy goods and services on the card and pay for them later by a specified date.

Some factors you can keep in mind while taking a card

There is nothing called as the best credit card in india but you can certainly choose the best credit card for yourself by comparing cards based on the following parameters.

  1. Joining fees: It had become history a few years back but has made a comeback since 2009. Many cards are still available without any joining fee however so compare this before you buy.
  2. Annual Fees: This is the annual charge on the credit card. When you get a free credit card offer in most case it means the Joining fees and the first year's annual fee is waived and you will ned to pay the annual fees from the second year onwards. Understand this offer before accepting it to avoid any issues later.
  3. Reward points encashable at your favourite store or service provider: If you are a frequent user of an airline or a store chain then look for a co-branded card from them since that will not only give you better reward points when you buy from that particular service provider/store chain but also give you reward points on your other spends
  4. Interest Rate on rollovers/cash withdrawals: If you need to look at this you are taking the credit card for the right reasons. Credit cards are not a good option for taking credit except for very short durations of time.
  5. Eligibility for the card: if you are planning to apply for a credit card for the first time then which card you will be eligible for is perhaps more important than the specific features of the credit card.  

Any promise made by the DSA or even an official of the credit card issuer  has no value unless it is in writing or at least on email.

So if you are basing your decision on any such promise make sure you get it in record in some form.

Do not sign blank application forms or documents and keep a copy of all documents submitted to the credit card issuer for your future reference.

 

Get your credit report Apply online on CIBIL website and follow the instruction given there to get a copy of your own and your guarantors credit report. Check your credit report thoroughly to spot errors and follow the advise given here (cross link) to get any errors corrected. Remember any errors in your credit report can reduce your chances of getting a credit card.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...
Read more

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...
Read more

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...
Read more

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...
Read more

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
Read more
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