Tips for the usage of credit cards | Be careful with the usage of credit cards and the method for cancelling them

August 14th, 2010| Uncategorized.

Tips for the usage of credit cards | Be careful with the usage of credit cards and the method for cancelling them

credit cardsCredit cards were given out forcibly earlier.  Many companies sold the cards with free life time usage and one plus one credit card offers.  And now banks are getting ready to decrease the card value along with collecting various charges.

Credit cards should be used intelligently.  It comes to our rescue in emergencies.  If one is oblivious it cheats the person in the form of various charges.  So people, who took more than one card, because the banks were offering, should surrender them.  Keep only one or two cards.  Otherwise there may be problems.

Don’t be in the feeling that more cards one has, the more credit one can get.  Come out of such feelings quickly.  Request the banks to increase the credit limit of an existing credit card.  If the number of credit cards is more it is not easy to remember to pay the bills of so many cards.  If the bill of a credit card is not paid before the due date, the interest rates will empty the pockets.  If this practice of not paying the bill on time is repeated for two, three times, Credit Information Bureau India will black list the customer name. The credit score decreases because of this.  This score is important to get a new card or a loan in future.  No bank will give loan to a person who was black listed.

Find the specialties of each card.  Take in to account the details like fees, interest rates and penalty fees.  Compare the reward points. Keep the card with more facilities like add-on card and free insurance.  Do not hesitate to cancel other cards.

Clear all the bills before cancelling the cards.  Then there would be no chance for the company to reject cancelling or to take time.  Some companies ask to pay the penalty.

Cancelling a card

Call the customer service center and request them to cancel the card.  Companies do not cancel the cards easily because cancellation of cards affects the sale targets of the company and the company has to lose revenue, which comes in the form of charges and revolving credit card fee.  Do not just stop by requesting them to cancel the card over phone.  Write a letter to the company.  Then only the customer can receive a letter from the company informing the cancellation of the card.  The customer will not be responsible for the transaction happened after the cancellation.  This letter from the company can be used as a legal proof.  Destroy the credit card after receiving the letter.

Having one credit card is best.  Two cards are better.  If one card is not working, the second one can be used.  If the first card is refused by any shop the bill can be paid with the second one.  Maximum benefits can be had when they are used with intelligence.

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