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Five things Credit card users should know-



 

Do you know these 5 Important points about Credit Card ?


1.Credit cards usage amounts to taking an unsecured loan from the card company. Interest rates on credit cards are high (22-48% p.a.). Interest is levied on monthly basis (39% p.a. is 3.25% monthly).


2.Credit cards come with an interest-free period — no interest is payable on the outstanding during this time. Typically, it is for 20-50 days.


3.Beyond interest-free period, monthly interest on outstanding will be charged. In addition, late payment fee and service tax (14.5% after Swachh Bharat cess) will be levied.


4.Paying minimum amount due does not mean interest need not be paid. It needs to be paid on balance. Benefit of paying minimum amount is to protect credit score.


5.You can withdraw cash using a credit card but the cash withdrawal limit is usually lower than the credit card spending limit.


Parag Nesarikar


 

Write your comments-

Exercise:

  1. Write 25 items which you always purchase through Credit Card-

  2. Which of the above trap you fall using Credit Card?

  3. Write- Which 10 points you will change in next 60 days using Credit Card?

 

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