16 Using Credit Cards

Once upon a time, having a credit card was a novelty.  I remember I got my first credit card some 22 years ago.  When I presented it for payment, it felt great.  I could see the awe in my friends’ faces too when they saw me paying through the card!!

Nowadays almost everyone has a credit card or on the verge of owning one.  Most of the card companies have done away with the one-time card fee. They have waived it off only for the lower variant of their card offerings.  Recently I saw an offer where the card company was offering Rs 1,000 if you went for their card!!

The key to using any credit card is to pay off the entire expenses before the due date.  Once you delay the payment, the interest keeps piling up and in the end you end up paying a lot more than what you bargained for. 

I charge my credit card for all the expenses that I can pay through it.  It includes electricity bill, mobile payments, gas payments, school fee payments, cab hire payment, medicines, doctor consultations, grocery buying, movie bookings, insurance payments, etc etc.  For all the payments that you make using the credit card, the credit card companies offer you reward points. It ranges from 1 point per Rs 100 to 5 points per Rs 100 or other variations to it.  Using these points you can then either redeem them for card annual fees, if there are any, or for gifts offered by the credit card.  Usually they have a list of gifts based on the reward points.  You can order them online and have them delivered to you.

Thanks to these reward points, I was able to procure an Air Fryer and a Sandwich Maker with the points, which otherwise would have cost me about Rs 7,000-9,000.  Normally I also use these points for paying for Book My Show tickets.

The expenses that I use the card for are actually the expenses that I would be mandatorily spending for.  Instead of paying by cash or a cheque, I pay by credit card.  I don’t but anything on the credit card that I cannot afford!!  Buy only for less-than-whatever-amount you have in your bank account so that the credit card bill is paid in full when the bill comes.

Also look out for offers on your credit cards.  Many credit card companies have tied up with different superstores where on swiping your credit card, you get some 3-5% instant cash back on your card.  Others have offers of 15% discount on dining.  While dining out on some special occasions, use that card and get the benefit.

Happy spending card-wisely!! Cheers!

Today’s daffy definition

Magnifying Glass - A tool for making mountains out of a mole hill!!