Share Market Basics Learning » Credit Limit http://www.sharemarketbasics.com/blog Stock Market Basics blog on Investments and Trading Fri, 25 Feb 2011 12:00:47 +0000 en hourly 1 http://wordpress.org/?v=3.3 Do you have a Credit Card ? Use it wisely http://www.sharemarketbasics.com/blog/do-you-have-a-credit-card-use-it-wisely/ http://www.sharemarketbasics.com/blog/do-you-have-a-credit-card-use-it-wisely/#comments Wed, 28 Jan 2009 21:06:01 +0000 admin http://www.sharemarketbasics.com/blog/?p=23 Credit cards must be used with great caution. It is a good practice to monitor your outstanding balance and also pay within the credit period so that you may not have to pay any interest.  For those who can pay up the entire amount within the credit period, the credit card is a boon. However, if you go in for the (usually 5 per cent) repayment option, and if payment is not made within the credit period, you may have to incur a late fee. In some banks it is as high as Rs 150. In some, it is around 15 per cent of the minimum outstanding amount or Rs75, which ever is higher.

Credit cards are issued on the basis of your annual income. The annual fee charged varies, depending upon the types of card you go in for . It may be as low as Rs 400 or has high as Rs 3,000 as the credit limit increases. The usual fee charged by most banks is just under Rs 1,000.

The credit  card scenario is so mind-boggling that you may have a problem selecting the best card. Every credit card issuing bank has a number of cards with various fringes attached.  Go through the Web sites of these banks and pose questions to the credit card representative before you select the card best suited to your needs. Compare the charges or Fees any any other hidden costs that you may have to incur when you go in for a credit card.

Today credit cards are dime a dozen. You may be offered a waiver of annual fee for the first year. But don’t forget, nothing comes free in today’s world. The usual ploy is that you will end up paying the first year’s in the second year!

A Tip -
When you go in for credit cards. find out which bank offers you maximum free credit period even for a basic card.

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