BENGALURU: Though most of us own a credit card, we lack some basic knowledge on managing it. Credit card is nothing, but a financial tool through which a user can purchase anything resulting in bank debts and repay them with interests within due dates. Credit card’s after-effects may be  useful or hurtful, is subject to the skills and awareness on how the user handles it. So here goes list of tips for management of credit cards, based on rediff report.

Activation:

Credit cards need to be activated after it is received, for some security reasons credit cards are not pre-activated at the time of delivery to the customers. Users need to call bank’s toll free customer care, follow the instructions and answer all the security questions. Most importantly call from a registered phone number.

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Know The Interest Rates:

Interest rates are the biggest burdens for the credit card users. In order to avoid tragic credit card stories, understand and compare the annual interest rates of various banks and read through the terms and conditions of credit cards, which helps you understand how to avoid recurring interests.

Credit Limits:

Credit limits are the maximum amount the customer can spend with in a billing cycle, the limit is set by the bank, based on user’s annual income, repayment records and spending history. Repaying full debts of the particular bill cycle within the due date will increase your credit limits considerably. But beware, as immediately after the first repayment your credit limit increases radically, which can be tempting but will eventually trap you into troubles. Understating your expenditure limits is much more important than credit limits.

Also Read: India's Worst Train Accidents From Recent Times

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 Reward programs:

Reward programs are the major benefits for a credit card holder, as they offer certain amount of cash back offers, as determined by the banks. Banks set various kinds of reward programs; some  users are rewarded for their very first debt repayment and some are rewarded for holding a superior repayment record. Thus it’s always better to learn about applicable reward programs before swiping credit cards.

Auto Pay:

AutoPay option will help users in automatic repayment of debts on credit cards from their personal bank accounts. This option can be further activated by presetting the payment date, minimum payable amount and total payable amount for a bill cycle.

Pre Planned Swipe:

Instead of using credit cards for unplanned expenses it’s noteworthy to use it on pre-budgeted purchases to avoid unnecessary interests. Planning can help you frame the credit card budget in order to avoid penalties. 

Also Read: India's Worst Train Accidents From Recent Times

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Benefits Of Using A Credit Card:

Apart from interest burdens, credit card users also get some minor benefits. If a store denies to refund money of the purchased product from which the user is not satisfied with, then the user can request the bank to revert the money from the store’s account. Some credit cards also offer extended warranty on products purchased and some offer purchase protection where you can claim the replacement of the defected product, which is under the warranty period. Purchase Price Protection is another lesser known benefit wherein the bank refunds the reduced amount of the purchased product, if the product’s price drops within certain period of time.

Also Read: India's Worst Train Accidents From Recent Times

8 Indian Beverage Brands You Should Know AboutBENGALURU: Though most of us own a credit card, we lack some basic knowledge on managing it. Credit card is nothing, but a financial tool through which a user can purchase anything resulting in bank debts and repay them with interests within due dates. Credit card’s after-effects may be  useful or hurtful, is subject to the skills and awareness on how the user handles it. So here goes list of tips for management of credit cards, based on rediff report.

Activation:

Credit cards need to be activated after it is received, for some security reasons credit cards are not pre-activated at the time of delivery to the customers. Users need to call bank’s toll free customer care, follow the instructions and answer all the security questions. Most importantly call from a registered phone number.

Also Read: India's Worst Train Accidents From Recent Times

8 Indian Beverage Brands You Should Know About

Know The Interest Rates:

Interest rates are the biggest burdens for the credit card users. In order to avoid tragic credit card stories, understand and compare the annual interest rates of various banks and read through the terms and conditions of credit cards, which helps you understand how to avoid recurring interests.

Credit Limits:

Credit limits are the maximum amount the customer can spend with in a billing cycle, the limit is set by the bank, based on user’s annual income, repayment records and spending history. Repaying full debts of the particular bill cycle within the due date will increase your credit limits considerably. But beware, as immediately after the first repayment your credit limit increases radically, which can be tempting but will eventually trap you into troubles. Understating your expenditure limits is much more important than credit limits.

Also Read: India's Worst Train Accidents From Recent Times

8 Indian Beverage Brands You Should Know About

 Reward programs:

Reward programs are the major benefits for a credit card holder, as they offer certain amount of cash back offers, as determined by the banks. Banks set various kinds of reward programs; some  users are rewarded for their very first debt repayment and some are rewarded for holding a superior repayment record. Thus it’s always better to learn about applicable reward programs before swiping credit cards.

Auto Pay:

AutoPay option will help users in automatic repayment of debts on credit cards from their personal bank accounts. This option can be further activated by presetting the payment date, minimum payable amount and total payable amount for a bill cycle.

Pre Planned Swipe:

Instead of using credit cards for unplanned expenses it’s noteworthy to use it on pre-budgeted purchases to avoid unnecessary interests. Planning can help you frame the credit card budget in order to avoid penalties. 

Also Read: India's Worst Train Accidents From Recent Times

8 Indian Beverage Brands You Should Know About

Benefits Of Using A Credit Card:

Apart from interest burdens, credit card users also get some minor benefits. If a store denies to refund money of the purchased product from which the user is not satisfied with, then the user can request the bank to revert the money from the store’s account. Some credit cards also offer extended warranty on products purchased and some offer purchase protection where you can claim the replacement of the defected product, which is under the warranty period. Purchase Price Protection is another lesser known benefit wherein the bank refunds the reduced amount of the purchased product, if the product’s price drops within certain period of time.

Also Read: India's Worst Train Accidents From Recent Times

8 Indian Beverage Brands You Should Know About