I also asked D, why she didn’t own a credit card. Her response: I don’t believe in the mechanism of credit — it’s not my money to begin with. By credit, I include credit cards, loans, overdrafts etc. — any money that’s not mine. I’m also not aware of the procedures to repay the amount. […]
I was curious to know why a friend of mine didn’t own a credit card — especially in this day and age. My friend’s response: Haasige iddashtu kaalu chaachu (idiom for: I don’t want to spend money that’s not mine to begin with). Add to that the hassles of remembering payment due dates, amounts, etc. […]
Because, Indian banks are now free to charge an annual interest rate of up to 49% from credit card customers for late payment. Read the complete story here. It’s not a great idea to carry your credit-limit-beyond-what-I-can-pay (most often …) credit card in your wallet especially in these lean times. You might be the most […]
I have often heard the argument that the credit limit on a credit card serves the purpose of an emergency fund. This strategy by itself is both myopic and dangerous. However, what can make this strategy both farsighted and safe is if you have a real emergency fund with real cash in a savings account […]
I’m a BIG fan of Suze Orman simply because she gives practical advice on personal finance. I try and catch her show every Sunday on CNBC (here’s the TV schedule). I happened to read this recent interview with Suze Orman where she answers questions posed by a group of personal finance bloggers. Though some of […]
A reader recently wrote: I have a friend who needs some guidance on a problem she’s facing with her Barclays Credit Card. Barclays is forcing her to avail a membership called Barclays Priority Circle. They call her several times a day asking her to pay around Rs 9,000 as membership fee and late payment charges. […]
I have an HDFC Bank Credit Card — one that I haven’t used since I received it over an year ago. I therefore decided to cancel it. A week back, I dropped a request-for-cancellation letter at an HDFC ATM near my house. Today morning, I called to check the status of my request. A few […]
Reader Shankar asks, Is there any Master Circular issued by the Reserve Bank of India on Credit Cards issued by Indian Banks? There certainly is: Download the Master Circular on Credit Card Operations of Indian Banks. Download an update to the Master Circular. There’s some pretty useful information in these documents. Again, take some time […]
When you see a financial offer that sounds too good to be true, you should always read the fine print. For example, a recent issue of Outlook Money carried an ad from Kotak Mahindra Bank that touts a 48-day interest free period on cash withdrawals done using the Kotak Fortune Gold [Credit] Card in lieu […]
In describing my credit card usage policy, I said, I should look at every other option before opting to purchase with a credit card. For reasons that still remain a mystery to me, I recently used my credit card to pay for goods and services when there were a whole set of other options readily […]
Source: RBI Notification. Banks have been advised that unsolicited credit cards should not be issued and that in case an unsolicited card is issued and activated without the consent of the recipient and the latter is billed for the same, the card issuing bank shall not only reverse the charges forthwith, but also pay a […]
In my financial independence checklist, I mentioned as the first point: I should not have any credit card debt. While this is true today, such was not always the case. A long time ago, I had an outstanding debt in six-figures on an American Express credit card and no bank balance to pay it off. […]
The following is a true account of a close friend’s experience after losing a credit card: How the credit card was lost? My purse was stolen on 20th January 2008 at an IKEA store in Elizabeth, NJ. I lost my Driver’s License, an HSBC credit card, and all my Debit Cards. I contacted the police, […]
There are principally three ways by which you can pay for petrol at a gas station: Cash, Credit Card (plain or co-branded), or Pre-Paid Petro Card. There are advantages and disadvantages in each option, mainly depending on your spending or budgeting beliefs. I always prefer paying in cash for all my expenses, except for airline […]