Urban Indians have started using their credit cards and debit cards a lot more than usual after the cash crunch caused due to demonetisation. Debit cards cannot be used if you do not have sufficient balance in your account. Credit cards will give you the loan temporarily but you will have to repay it. Often, credit card repayment is associated with hefty interest rates. Thus, it is extremely important for all the credit card users to learn the safe ways of using credit cards so that they do not end up with a massive bill at the end of the billing cycle. Overspending on credit cards can also lead to a drop in the credit rating which also brings down a person’s credit worthiness.
Use your Credit Card Wisely when you do not have Cash
According to one of the senior officers of HDFC Bank, there has been an increase in debit card transactions by 4 times after demonetisation. As per Axis Bank, the usage of debit cards has spiked by 100%. The transaction volume for credit card has gone up to 30% in this short span, according to Vijay Jasuja, CEO of SBI cards.
MD of JLL retail services, Pankaj Renjhen, feels that demonetisation is going to influence several shoppers to make use of plastic money in the long run. He added that the usage of e-wallets, debit cards and credit cards goes up in malls when the big sales arrive. This happens mostly when fintechs (financial technology companies) and banks offer discounts and cashbacks.
As per several financial experts, the abrupt and uncontrolled rise in credit card usage can invite trouble. As per the MD of Experian Credit Bureau, Mohan Jayaraman, a person must ensure that payment towards credit card dues must be made every month. At times, credit card users fall into debt traps by only paying the minimum due amount over the outstanding balance on the credit card. Eventually, this leads to huge credit outstanding for the credit card holders.
It is highly advisable that all expenses on the credit card are monitored. Jayaraman added that if the spends or utilisation rate goes out of control, then it can have a negative effect on the credit score.
Certain things that you must do with respect to your credit card usage are as follows:
Set a budget for your credit card and ensure that you stick to it. Keeping a budget in mind but overspending at the time of cash a crunch will not help you at all. Monitor your expenses by writing them down on paper. In case you cannot do that, make use of the mobile applications that help you to track and manage your expenses.
Do not apply for multiple credit cards just because you can get some discount or offer. Several malls and supermarkets have various activation points close to the billing or transaction counter. This is where the credit card companies give away more cards if you shop for a particular amount. You must control your spending habits in order to lead a life free of financial stress. For example, if you have a limit of Rs.30,000 and if you have completely exhausted it, control your temptations of shopping more. Do not call up the credit card issuer to increase your limit. If you do so, it can be a burden to pay off the debt.
Stick to one credit card only to tide over the problems created due to the cash crunch.
Bottom Line – Credit cards can be of great help if you use them wisely. Do not spend what you cannot repay. Ensure that you make the payments towards your credit card outstanding balance on a regular basis until the debt is cleared.
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I am holding credit card from Axis Bank. I received the card on time. Credit limit is very less. I am not satisfied with their customer service. I lost my credit card. I informed them many times about it but they have not issued a credit card yet. When I call their customer care they ask me to go to branch and when I go to their branch they ask me to call customer care.
While surfing a credit score in a website I came to know about Bank Bazaar for the first time then I preferred to apply for a credit card and the process was good. Customer service is a nominal and okay. I use to check credit score through a website.
I am using INDUSIND bank credit card for more than a month which was applied through an online. On time I received a card from bank. The credit limit is okay which was given from bank. Not yet use the card. The customer service is good and responsiveness.
I have come to know about Bankbazaar from the internet. Their customer service is good and very helpful throughout the process. I have been using Bankbazaar for the last 4 months. I check free credit score and mobile application is user friendly.
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Reviewed on Jul 16, 2019
I am using my new INDIANOIL CITI PLATINUM CARD. I was delivered on time. Citi bank has given very less credit limit. I am expecting 1 lakh and above. It is a lifetime free card. I am having a hard time to pay my bills and it takes 2 days to reflect my payment.
I am holding an HDFC credit card. I have been using this credit card almost 10 years. I had received the card on time and credit limit is nominal. Sometimes I am getting some benefits like cashback offer and reward points. HDFC bank customer service is great.
I am holding a credit card from Axis Bank. I received the card on time. It is a lifetime free card. I have been using this credit card for the last 2 years. Axis bank Netbanking and mobile banking are user friendly. They have given me enough credit limit.
I am using INDUSIND bank credit card for more than 3 months which was applied directly to bank. On time I received a card from bank. It is a life time free credit card.The credit limit is nominal . I use this card for all purposes. The customer service is no proper response.
I have used the services of Bankbazaar earlier as well. The customer support is good and they are quick to respond. The process is also satisfactory as it was easy to use the portal and place a request. There were follow up calls as well. In all no hassles.
I have come to know about Bankbazaar from a promotional message. I have been using their service more than 5 years. I visit this website to check financial products and credit score. Their customer service is good. Website and mobile application is quite user friendly.
I had applied for a credit card with Indusind Bank. The process has not been satisfactory. The credit card was sent to my old address and I did not even receive a call as well. Since I was no available at that address it returned to the bank and after which I got no card from them.
I am holding HDFC bank titanium credit card for more than 9 months which was applied directly to bank. On time I received a card from bank. It is an annual fee chargeable card.The credit limit is nominal and enhanced it. I use this card for all purposes but I get less reward point.
I have received my Indusind Bank PLATINUM AURA EDGE MASTER CARD. I am not able to pay my credit card bill through netbanking. The process seems very difficult to me.It is a lifetime free card and credit limit is nominal. They deliver the card on time.
I am holding RATNAKAR bank credit card for less than 2 years. It is an annual fee chargeable. The limit is okay now they have increased to 7 thousands only. I use this card electricity, ticket booking, restaurants, to buy electronic items based on the usage I get more points. They are taking some hidden charges without any intimation.
I have been holding SBI credit card from long time, their service is good, they have charged me annual fee but waived off option is available, i am happy with the credit limit they have given me good limit as per my requirement, even the interest rate they have charged me is less comparing to market price.
I have been using YES bank credit card for long time my experience till now with this bank was good, they provide me good offers in all products, and they have not charged me annual fee in this card, it is life time free credit card, and i am happy with the credit limit which they have given me in this card.
I have been holding standard chartered bank from long time, but i am not satisfied with their service , their service is not up to the mark, they have charged me annual fee but no waived off option is available in this card, i hold this account two years before, but they have not increase my credit limit, their customer care service is not up to the mark.
I have been using ICICI bank credit card for a while, and they have not charged any annual fee in this card , it is life time free card and i am okay with my credit limit which they have given me in this card and like they charge annual fee but most of time it use to get waived off so i considered as no annual fee they charge and they provide good offers and discount in this card.
I came to know about Bank bazaar through Online only ,This portal was well known to all ,I have tried checking credit score it is very useful ,This portal is very useful to search all the required information related to all financial products . I am satisfied with the service .
I have been using HDFC credit card for long time, they have not charged me annual fee in this card, it is life time free credit card and i am happy with the credit limit they have given me in this card, and there is not much offers they have given in maximum products, they mostly given offers on miles that more important for me , overall service is good.