How to deal with evils of Credit Cards and manage it ?
Rate of Interest
Most Card companies charge 2.5% - 3.9% pm of interest if you don’t pay 100% of the dues.
All Card companies quote the interest rates as monthly but when you look at it is 30%-50% yearly.
So if you have a 1 lac due on your card you will have to pay Rs 2500- 4100 monthly as interest and which is as high as Rs 30000-50000 yearly.

Only use Credit Card as a convenience of not to carry cash and pay 100% on due date and only use 30-45 day of free credit period given by Bank. Never use Credit Card when you are not sure that you can pay 100% of your dues.
Withdrawal of Cash from Credit Card
Most Banks give you access to withdraw Cash on your Credit Cards from ATMs.
Consumers thinks it is at a nominal cost but it come with interest rate of 35-50% annually.

Credit Card is not an ATM card – only use Debit Cards to withdraw cash.
Even if you withdraw money in emergency , ensure you pay as early as possible.
Minimum payment Due
When you receive statements you see a minimum payment due amount which is 5% of your total bill.
A large part of Consumers think that is payable at that time and pay that much amount only.Instead Pay 100% of amount due,
as on rest 95% you have to pay 36%-50% rate of interest.

Only look at total due on your Credit Cards. Say yes to 100% payments on Credit Cards.
How to get real Reward points.
All Banks offer usage based reward points or Cash backs on shopping on Brands and Online shopping discounts these days.
A consumer needs to understand what he needs to use his Credit Card for.Otherwise all what looks like a attractive offer on shopping from credit cards ,doesn’t actually get you any discounts


Where do you spend most i.e. Petrol/ Airtickets/Shopping @ Particular store.
If at any place you spend more than 5000 a month and that place has a Cobranded card – just get that card- it will give you actual rewards.
You can save 1-2% of your monthly spends via that route and ensure you save money by using credit Cards and earn from it.

Multiple Credit Cards
Once you have one Card you are flooded with offers on other Bank Credit cards and at time you end up taking these 4-5 Cards different bank cards.
Most cards come with some sort of fees and then you feel the pinch.

Opt for Max 2 Credit Cards of that one can be Visa and other can be master card .
Opt for Free Annual charge Credit Cards and one card should be Co-Branded as per your usage needs.
Credit Card is an convenient plastic made to lure to spend more.Control and be disciplined and you will never fall in any Debt Traps.
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