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Old 20th February 2014, 12:12   #1531
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Default Re: The Credit Card Thread

Thanks Aditya.

Regarding your transaction, it looks like you may trace the path I have .. Helpdesk wasnt helpful. So next step is the dispute form that's available on their website for Rs 225/-.
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Old 20th February 2014, 12:48   #1532
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Originally Posted by gemi_kk View Post
Would someone please answer my queries.
I see that some one made enquires on my Cibil report. But i haven't applied for any home/car/bike/personal loan. How can i get it fixed?
Cancelling a Credit Card will have any impact on my CIBIL score? its a new card and i am not satisfied with it.
What all documents one need to take from the bank when he closes his credit card?
Do i have to check anything else?
In CIBIL report you might have seen all details related to the inquiry, like date, bank/institutions name, purpose and amount. So you contact the particular institution for queries. I think CIBIL's functioning is not very error proof. You might have seen many errors in the report.

Closing a credit card will not negatively impact your CIBIL score, on the other hand it may improve a bit. Having one or two credit card with neat repayment history will give good impression.

After closing the credit card, you may take a no due certificate from the bank. Else you can write to customer care and take it in writing.
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Old 20th February 2014, 13:12   #1533
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Quote:
Originally Posted by MaxTorque View Post
In CIBIL report you might have seen all details related to the inquiry, like date, bank/institutions name, purpose and amount. So you contact the particular institution for queries.

Closing a credit card will not negatively impact your CIBIL score, on the other hand it may improve a bit. Having one or two credit card with neat repayment history will give good impression.

After closing the credit card, you may take a no due certificate from the bank.
Thanks Max.
I see that some enquiries have been made by HDFC. But i haven't applied for any loans from HDFC. These entries are around 1 year old. Some entries are 3 years old too From SBI.
Now, if i contact HDFC & SBI, Will they correct these old records?


Currently i have 2 CC accounts and 3 cards with neat repayment history from the past 5+ years. So, if i close 2 cards now, will it get any better?
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Old 21st February 2014, 17:34   #1534
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Default Re: The Credit Card Thread

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Originally Posted by gemi_kk View Post
Thanks Max.
I see that some enquiries have been made by HDFC. But i haven't applied for any loans from HDFC. These entries are around 1 year old. Some entries are 3 years old too From SBI.
Now, if i contact HDFC & SBI, Will they correct these old records?


Currently i have 2 CC accounts and 3 cards with neat repayment history from the past 5+ years. So, if i close 2 cards now, will it get any better?
I am not very sure about the way credit rating agencies work. I think they can share the details of a person among the participating organisations (banks) without taking consent of an individual. In my opinion, you need not worry about those queries.

Regarding the cancellation of the cards, it may improve your credit profile but not guaranteed. If you are leaving a good portion of your credit limit as unused it will definitely help to improve the score.

Other members can through some more light on this topic.
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Old 21st February 2014, 23:48   #1535
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Default Re: The Credit Card Thread

Quote:
Originally Posted by gemi_kk View Post
I see that some enquiries have been made by HDFC. But i haven't applied for any loans from HDFC. These entries are around 1 year old. Some entries are 3 years old too From SBI.
Now, if i contact HDFC & SBI, Will they correct these old records?
I suppose this is the CIBIL report you had requested yourself and not something a bank obtained to view your credit score.

The CIBIL report received by the bank does not have any info regarding the queries nor does it have the credit card issuer details. What it shows is that you hold a credit card with xxxx limit and are there any missing payment. There is one such entry for each credit card you hold. It also has similar entries regarding any loans you have. I wouldn't worry about any queries.

How do I know all this? I saw my CIBIL report that SBI received for processing my car loan. They had one query regarding an outstanding CC payment and asked me for clarification. There was no indication about what card was it. Luckily for me, the outstanding amount matched exactly with the previous month statement of one of my credit cards and I could provide them with proof of payment.
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Old 27th February 2014, 13:35   #1536
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Default Re: The Credit Card Thread

I have a ICICI bank credit card and I want to make a $15 purchase online. It's for purchasing a software license online from a US website.

Can I make a dollar payment using my CC ? Do I need some international card ? Any extra charges or conditions that I should know of ?
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Old 27th February 2014, 14:25   #1537
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^^You can use your credit card, but you will be charged a currency conversion charge. I'm not sure of the exact percentage, but there is a charge.
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Old 27th February 2014, 17:00   #1538
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IIRC it is something around 1 - 3 %. So hardly anything for just 15$. So go right ahead.
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Old 28th February 2014, 04:11   #1539
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Default Re: The Credit Card Thread

I need help. I have an HDFC credit card for some time and now and have an EMI on a handset purchased on it in October for 6 months. It will end in April.

There were some untoward expenses on the credit card in the last bill cycle. The total amount to be paid is 32300/- and I have a minimum due of about 5700 including the EMI on the phone.

I should have been able to pay this amount but unfortunately, the IT cutting meant that I did not get the expected salary this month. I would be able to pay about 20k to the Credit card this month.

I have not yet missed a payment in the past one year of the Credit card, so i dont know how this works. How much of a hit am I to take on this. The CC due date is 4th of this month, and I can go without using the CC till the next bill cycle. (It will still have the last EMI on the handset.) and I can repay the amount before the due date on the next bill cycle. I can borrow from a friend to tide over for this month, but i really dont want to do this as I have not done so in about 3-4 years. I do can borrow, if required.
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Old 28th February 2014, 05:48   #1540
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Default Re: The Credit Card Thread

Quote:
Originally Posted by govigov View Post
I need help. I have an HDFC credit card for some time and now and have an EMI on a handset purchased on it in October for 6 months. It will end in April.

There were some untoward expenses on the credit card in the last bill cycle. The total amount to be paid is 32300/- and I have a minimum due of about 5700 including the EMI on the phone.

I should have been able to pay this amount but unfortunately, the IT cutting meant that I did not get the expected salary this month. I would be able to pay about 20k to the Credit card this month.

I have not yet missed a payment in the past one year of the Credit card, so i dont know how this works. How much of a hit am I to take on this. The CC due date is 4th of this month, and I can go without using the CC till the next bill cycle. (It will still have the last EMI on the handset.) and I can repay the amount before the due date on the next bill cycle. I can borrow from a friend to tide over for this month, but i really dont want to do this as I have not done so in about 3-4 years. I do can borrow, if required.

If you pay as much as you can, but not the full amount due, for this one month, then in the next billing cycle they will charge you interest at some 3%, calculated on the total outstanding amount on your card.

If you can bear that 3% hit, then you can revolve the credit on your card for just this one month and survive it. It wont really hurt, except that you would be paying that extra interest amount.

If, on the other hand, you have any other source of cheap funds, like 'borrow from a friend' then you can try that, so that your repayment history is smooth and you will not have to pay the interest either.

The Income tax hit is always a problem in the last month of the Financial Year.
But that is the curse we carry for living in this country and if we have not planned our money cash flows etc properly enough.

You will perforce, do better next time so take it cool.
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Old 28th February 2014, 06:26   #1541
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Default Re: The Credit Card Thread

Quote:
Originally Posted by shankar.balan View Post
... they will charge you interest at some 3%, calculated on the total outstanding amount on your card..
I think the interest is on full amount, from the date of purchase / transaction.

It doesnt pay to buy with cards :(
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Old 28th February 2014, 08:30   #1542
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Default Re: The Credit Card Thread

Quote:
Originally Posted by govigov View Post
The total amount to be paid is 32300/- [..] I would be able to pay about 20k to the Credit card this month.

I can borrow from a friend to tide over for this month, but i really dont want to do this as I have not done so in about 3-4 years.
There are two basic rules of personal finance:

1. Do not rollover credit on a credit card.
2. In case of doubt, refer to rule #1.

Borrow from your friend. Check if your firm can give you a salary advance. Check with family (parents?) for a short-term loan. Even the "loan approved within 1 minute" personal loan is better when compared to rolling over credit on a credit card.

Quote:
Originally Posted by shankar.balan View Post
The Income tax hit is always a problem in the last month of the Financial Year.
But that is the curse we carry for living in this country...
Any country you know which doesn't levy income tax (except for some known tax havens)?

Last edited by binand : 28th February 2014 at 08:36.
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Old 28th February 2014, 09:23   #1543
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Default Re: The Credit Card Thread

Quote:
Originally Posted by govigov View Post
I need help. I have an HDFC credit card for some time and now and have an EMI on a handset purchased on it in October for 6 months. It will end in April.

...I do can borrow, if required.
Quote:
Originally Posted by binand View Post
There are two basic rules of personal finance:

1. Do not rollover credit on a credit card.
2. In case of doubt, refer to rule #1.

Borrow from your friend. Check if your firm can give you a salary advance. Check with family (parents?) for a short-term loan. Even the "loan approved within 1 minute" personal loan is better when compared to rolling over credit on a credit card.
Totally agree with binand. As long as you keep paying the full amount due, there is no interest involved. The moment you do carry over balance, things start getting ugly. The interest calculation is not for the outstanding amount, but interest calculation starts from the day of purchase. Interest is usually calculated on daily average balance.

Let us consider a small example (sorry about the long calculations). Consider a billing cycle of 1st to 30th of every month and an APR (Annual percentage rate) of 30% (Check with your company for the actual APR). You purchased something for Rs.50,000 on 10th of the month. The statement for the month will have a outstanding amount due of Rs.50,000 with a due date of 15th of the 2nd month. If you pay off the 50,000 before due date, no interest will be charged. If you make a partial payment of say Rs.25,000, then interest calculation goes like this :

Interest on Rs. 50,000 from 10th to 30th of 1st month - Rs.821 - The formula is (APR*Amount*Days)/(100*365)
Interest on Rs. 50,000 from 1st to 15th of 1st month - Rs.615
Interest on Rs. 25,000 from 16 to 30th of 2nd month - Rs.308
Total interest - Rs.1744

So, you will get an interest of Rs.1744 added to the 2nd month statement.

This is a very simple example where I assume interest is calculated only once a month on the daily average balance. If the credit card company calculates interest on a daily balance basis, then the interest would get compounded as well and you will end up with a higher interest component. Every month you carry over the balance, the situation will become worse. This is where the credit card companies make money. I do not know how your EMI will be treated in the interest calculations.

As binand suggested, try to pay off the complete due by any means. A personal loan to payoff the credit card would work out cheaper than leaving a balance on the card.

Last edited by graaja : 28th February 2014 at 09:25.
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Old 28th February 2014, 11:06   #1544
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Default Re: The Credit Card Thread

Quote:
Originally Posted by govigov View Post
I need help. I have an HDFC credit card for some time and now and have an EMI on a handset purchased on it in October for 6 months. It will end in April.

There were some untoward expenses on the credit card in the last bill cycle. The total amount to be paid is 32300/- and I have a minimum due of about 5700 including the EMI on the phone.

I should have been able to pay this amount but unfortunately, the IT cutting meant that I did not get the expected salary this month. I would be able to pay about 20k to the Credit card this month.
Came across this useful tool that calculates the payoff time and interest paid for a credit card due.

http://www.rupeetimes.com/calculator...calculator.php

Per this calculator, if you pay 20k this month, and the rest next month, and if HDFC charges 24% APR, you will have to pay an interest of about Rs.900. If you are ok with this interest, you can go ahead with your plan.
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Old 28th February 2014, 11:28   #1545
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Default Re: The Credit Card Thread

Please pay it in full, even if it means borrowing money in the short-term. Why pay interest for nothing and perhaps more importantly, why tarnish your credit history?
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