Heiisenberg
Heiisenberg
Unnamed

Mindful credit card usage

Hello folks, Due to some financial crunch, I'm planning to get a credit card but I've heard from people about the scary stories of credit cards. Can any body who owns credit card can give his experience or any tips what card or how to use the card or any other general advice.

I just want to use cc for online purchases and maybe in emergency situations.

Thank you in advance.

9mo ago
TinyHumidity
TinyHumidity
Stealth9mo

Credit card is a tool to use only if you already have money sitting in bank. If that is not the case you would be stressed for whole month. Interest rate is highest in credit card, better to take other products like flexible OD or best is credit card + flexible OD( so you don't worry about credit card bill payment)

Heiisenberg
Heiisenberg
Unnamed9mo

Will really look into flexible OD thanks.

SteveRogers
SteveRogers
Stealth9mo

There is only one simple rule. Buy only that thing from a credit card which you can comfortably buy using your debit card.

Heiisenberg
Heiisenberg
Unnamed9mo

Yesss I will keep that in mind.

Thanks.

CosmicLegend
CosmicLegend
Amazon9mo

You mentioned you're facing financial constraints. Having some loans can be beneficial, but credit cards are costly tools to manage during a financial crunch.

Loans to consider in order of complexity (left to right) - hand loan (from friends/families), salary advance from employer, gold loan, property loan, personal loan, credit card loans, mobile app loans..

Heiisenberg
Heiisenberg
Unnamed9mo

Well I know it's a costly tool but I want to try it out i would refrain from asking from family or friends personally. I hope i would make better use of it and maybe learn something about money management

FancyChino64
FancyChino64
Stealth9mo

just pay the bill on time....you will be good

once you don't pay, they put interest charges of 3-4% per month which will compound like crazy

Heiisenberg
Heiisenberg
Unnamed9mo

Yup I need to be financially disciplined.

LovelyTech
LovelyTech
Gartner9mo

I started using CC a year back and here is what I have learnt :

  1. Dont buy anything which you don't need just because you have a limit of say 2.5 or 10lakhs. 2.Use it instead of debit card/upi to earn points for big/small purchases. 3.Never invest the money from credit card. 4.Dont fall into the trap of online sale/impulse buying. 5.Never exceed you card usage above 30% of your savings (unless there is emergency). 6.Always check your bill statement before you pay it. 7.Always take a card which gives max points.

Imitially I did a lot of mistales but now I have controlled it and it helped me planning my expenses /savings for the next 2 months.

Heiisenberg
Heiisenberg
Unnamed9mo

Yup I need to get financially disciplined. Thanks for the heads up.

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