Credit Cards – Good or Bad

Almost everyone is lured to buy a  Credit Card if he is earning. But is owing a credit card good for all. Credit Card has lot of conveniences and free bees

Best Features of Credit Cards.

1. No need to carry Cash
2. A free credit period of Max 45 days.
3. Discounts offered on Usage at outlets.
4. Reward points and gift v/s reward points redemption
5. Free air tickets or free miles .
6. Petrol vouchers for Credit card usages turned rewards.
7. Helps to start the credit score which is must to take loans in future.

Disadvantages of Credit Card

1. Yearly fees from 150-10000.
2. If you forget to pay in time, late payment fee and charges
3. If you pay part of your total expenditure you will have to pay interest rates of over 40%-60% a year which is unthinkable.
4. Loss or theft of credit card and risk involved with it.

So owning a credit card is good if you know how to manage it but if you don’t know- how to control your expenses with a Card you can ruin your financial life. With credit cards you happen to spend more as your wallet becomes a 50000 purse which tempts to buy things.

To pay in EMI over in Cards, is not also ensuring you are going overboard with it.

Have two cards one for general use and other for the co branded with the product where your spends are most.

For E.g. if you spend on fuel take a Co-branded fuel card like Indian Oil CITI or HPCL Amex.

If you air travel get a Jet airways or Indigo co branded card and get free air tickets for family.  Never overspend or get into pay later mindset. Just use your card and pay 100% within time and enjoy the free bees.