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Credit Cards vs Cold Hard Cash


The security benefits of using credit cards have long been recognised. Even with the extra attention that is being placed on identity theft and credit card fraud these days, using your credit card is still one of the safest ways to pay for things available.

All credit card companies will provide you with an emergency number to call if your card is lost or stolen and in the vast majority of cases, any loss that is incurred by your account will be fully refunded by the card provider. This will always be the case unless you are somehow involved or to blame for the fraud, such as by giving out your security details to someone you shouldn’t have trusted. This means that even if your cards and information are stolen, you generally have nothing to worry about so long as you report the incident. Replacement cards can be sent to you very quickly.

Another benefit of credit cards over cash is that you can use them with ease abroad. They are fast becoming an internationally recognised currency. While cash will be accepted everywhere within your own country, credit cards are accepted at a huge number of locations all over the world. As soon as you step off a plane, and especially if you are travelling through a number of countries, a credit card will be an invaluable means of payment everywhere you go.

Another huge benefit of credit cards, that is really only beginning to show itself with the growth of Internet shopping, is the ease with which payments can be arranged online. There are thousands of websites now, all over the world that will conduct business with you and give you access to great prices if you have a credit card to pay for it. Gone are the days when cheques would be mailed in the post. Now, with new payment systems such as pay pal, even individuals can accept credit card payments with great ease and for very little expense. You should take care with your personal information and payment details however, and conduct business either via an intermediary such as pay pal, or only with companies you know you can trust.

The disadvantage of credit cards is that they can cost you money. You pay interest on balances that you carry from one month to another and if you do use your credit card abroad, you will have to accept additional charges from your card provider.

What is a Credit Card?
It is commonly known as plastic money which is used in place of the cash. A credit card is used to purchase any product from the market on credit. It has 16 digit no., CVV no. and a unique pin no. which has to be kept secret by the user.

It has replaced currency notes and has found a permanent place in our wallets however it is an unsolved mystery for many and thus resulting into hundreds of complaints about excess fees, charges since its poorly understood even though banks give users all the needed information in form of a printed "terms and conditions" that come with their card kit.

The users usually have mixed reviews about a credit card. Some users are very pleased with these while some are so irritated that they strictly deny to have one in the future. We are going to discuss here about the same topic.

Generally, a credit card comes with benefits and some charges which are not actually hidden. Like different cards come with different annual fees, late payment charges and other charges. But when a person applies for a card, he/she often views only the benefits and not other rules and regulations. Somewhere, there is also the fault of sales person as he is not able to properly guide the customer. Which results in his negative feedback. So, is there any solution to this problem? Yes off course, a little attention can save you from unnecessary charges. What you need to do now is read these important tips to follow to play safe with the credit cards.

Any person applying for it must be aware of these facts:

- There is due date mentioned in the bill statement. You need to pay your bill before this due date to avoid late fees. All banks have different late fee like Rs. 750 for a month.

- In the bill statement, two amounts are mentioned namely Minimum due amount and Total Due amount. To avoid interest on your next bill, be sure to pay total due amount instead of minimum due amount. Paying minimum due amount will get you low cibil score and unnecessary charges on your bill. These charges vary with the bank and can be 3-4%

- All the cards have fixed bill cycle and payment date. So, don't forget to manage your expenses to pay the bill on time.

- Always check your bill statement. And if you think that it needs to be corrected, then do it within 60 days.

- Remember your credit card number always. In case, it is lost then it is easy for you to report it fast to the bank. Also, it can be easy for shopping online because you will not have to take it out always. However, at the time of shopping you also need CVV no. and expiry date. But it's good to remember your credit card no.

- Check the annual charges and other fees of the bank while applying for a credit card. All the banks have different fees and charges which you need to check. This will help you in knowing about your credit card and the upcoming charges. So, that you would not be surprised with these fees and charges.

- Credit cards come with certain points and rewards program. These points convert into the value like in some cases 2 points = Rs.1 while in some it's like 4 points = Rs.1. You need to know about these reward points to redeem later.

- Check that is your bank awarding you cashback with shopping. Cashback means that the amount of cashback that your card is liable for will get the cash back in your account at the time of bill cycle. The value of cashback gets debited in your account in the bill statement. This is a good feature and will help you in saving whenever your shop. For this you need to check out that what offer your credit card is offering.

- Don't use complete limit of your credit card as it can give a loss to your credit score. To maintain healthy cibil score, you need to spend no more than 50% of your credit limit.

- Don't use your card to pay the bills of other credit card or any other debt. It will lead to bad financial health. Instead you can apply for the personal loan which is available easily at very low rate of interest.