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Old 22nd June 2013, 22:57   #1141
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Default Re: The Credit Card Thread

Quote:
Originally Posted by hellmet View Post
Why are you looking for a credit card?

Btw, I've a zero balance savings account with ICICI and I'm charged for NEFT.
Online shopping. Since i am just a student, i would prefer EMI's and that is possible only on CC's.
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Old 22nd June 2013, 23:46   #1142
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Default Re: The Credit Card Thread

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Originally Posted by searchingheaven View Post
Online shopping. Since i am just a student, i would prefer EMI's and that is possible only on CC's.
Ideally a credit card should only be used for those rare occasions when you do need 'credit' or a loan such as in an emergency. They're really good at that because they're a liquid source of instant money and frees your actual money for higher interest investments.

The problem with credit cards, however, is that they tend to give you a false sense of having more money than you really do and could possibly ruin your finances in the medium to long term.

And regarding the EMI, the only thing your money should be going to every month is into an investment account or deposit, not to some merchant who's going to get rich with your money.

The idea of splurging money can be tempting as a student (been there done that) and after having destroyed my finances at one point of time I changed for the better.

May I suggest you instead stack some money every month and then buy whatever you want to buy in full cash? I've discovered that I really feel bad parting away with physical money than in digital forms. Or buy used.

You don't have to take my advice, but please do give it a thought.
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Old 23rd June 2013, 09:33   #1143
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Quote:
Originally Posted by searchingheaven View Post
I am looking for a proper FAQ on credit cards. I am a complete noob when it comes to CC's. Have always used debit cards. Any links or docs?
FAQ
NO 1 : credit card is a very high interest rate option interest works to nearly 42% per annum so never use credit card for credit. Credit card must be used just as a means to avoid carrying cash and some times defer payment within free credit period.
No 2 : apply for credit card if and only if you have a regular income from your own sources.
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Old 23rd June 2013, 17:52   #1144
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Default Re: The Credit Card Thread

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Originally Posted by searchingheaven View Post
I am looking for a proper FAQ on credit cards. I am a complete noob when it comes to CC's. Have always used debit cards. Any links or docs?
In a nutshell, the difference between credit card and debit card is similar to the difference between postpaid and prepaid mobile plan.

Quote:
Originally Posted by searchingheaven View Post
Online shopping. Since i am just a student, i would prefer EMI's and that is possible only on CC's.
If you are a student, it would be difficult to get a credit card since you don't have an income.

Some unsolicited advice from my side:
1. Don't opt for a credit card until you start earning
2. Don't buy electronic gadgets on EMI

Rohan
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Old 23rd June 2013, 18:22   #1145
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Default Re: The Credit Card Thread

Quote:
Originally Posted by rohan_iitr View Post

Some unsolicited advice from my side:
1. Don't opt for a credit card until you start earning
2. Don't buy electronic gadgets on EMI

Rohan
Quote:
Originally Posted by amitk26 View Post
FAQ

No 2 : apply for credit card if and only if you have a regular income from your own sources.
Quote:
Originally Posted by hellmet View Post

You don't have to take my advice, but please do give it a thought.
Advice understood and taken. . I had heard from some people that CC's could damage finances quite a lot. But didn't think deeply as i had no one to refer to. So i won't take any CC's now.
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Old 23rd June 2013, 19:02   #1146
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The credit card is a very dangerous piece of plastic in ignorant hands.

Think of them like the evil moneylenders of our 80's movies.They charge enormous interest.they always tempt you into spending more.tempt you into increasing credit limits.

The fine print hides terms that are highly favourable to them.And most people sign without reading them, just like the illiterate farmer putting thumb print.

They will partner with shady operators who will swipe your card in a jiffy and exhaust all your credit limit in the garb of EMI. And share the spoils with them.

They will make your life difficult with collection agents and CIBIL records.

On the other hand, if you use it as plastic money i.e. always clear dues on time. Never enter a shady EMI deal, Watch your back security wise., its an excellent tool to carry for those emergencies and opportune purchases.

You can save on exclusive offers and bill payments.Its also a good way to increase your credit score and enhance your customer profile with the bank without taking a loan.
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Old 23rd June 2013, 20:58   #1147
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Default Re: The Credit Card Thread

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Originally Posted by Raccoon View Post
Well, NEFT is definitely free when done thru my ICICI B2 account. An ICICI savings a/c holder told me its free for savings a/c too. They must be charging for current accounts only.
Well, their charges are listed here: http://www.icicibank.com/Personal-Ba...neft-rtgs.html

The charges for NEFT upto 1 lakh is the same as HDFC Bank, Rs. 5 + ST. The URL says "Personal Banking" so I'm sure these charges are applicable to savings accounts except the "privileged" accounts where you need to maintain relationship of Rs. <big number> with the bank.

Quote:
Originally Posted by searchingheaven View Post
I had heard from some people that CC's could damage finances quite a lot. But didn't think deeply as i had no one to refer to. So i won't take any CC's now.
To take a concrete example: Here is a deal from HDFC Bank's website (I think this deal is available at all high-street retailers like Croma, e-Zone etc.)

http://www.shop.hdfcbank.com/Product...d-3149299.aspx

I will not present the calculations here (Excel/Calc XIRR function), but assuming you maximize your free credit period, this scheme works out to 12.5% APR for the 6-month EMI scheme.

Having said that, credit cards have their plus points too. Emergency source of funds, some level of buyer protection, ability to do international transactions, some ownership-linked privileges (airport lounges etc.) and some decent loyalty programmes are a few such.
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Old 23rd June 2013, 23:00   #1148
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Default Re: The Credit Card Thread

I have had enough of issues with Standard Chartered Credit card. Each and every month i have something or the other issue with the bank. They are very arrogant and unethical. So i have decided to opt out of the SC Card. The benefits that i am getting are:
1)Surcharge waiver plus 2.5% cash back for fuel fills.
2)5% Cash back for utility bills, telephone bills.

I tried to figure out the same kind of benefits with other banks but identified none. Can someone suggest any good option on par with the SC card benefits.

Thanks in advance.
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Old 2nd July 2013, 23:54   #1149
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One of my Uncle's recently passed away.He had a plethora of Credit Cards issued from multiple banks. While reconciling his assets and liabilities recently we got to know that his Credit Card outstanding is a substantial amount. Now I'm wondering
1. Whether this liability would pass onto the legal heirs?
2. Since CCs are an unsecured credit line, what happens if the legal heirs do not pay the amount. (Since my uncle has passed away the CIBIL rating doesn't matter)
3. What action could the Banks take to recover the debt?
4. What should be the future course of action for the legal heirs in terms of paying/settling or distancing themselves from this debt?
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Old 3rd July 2013, 02:04   #1150
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Default Re: The Credit Card Thread

The card holder and co-signer/joint holder are the only persons accountable for credit card debt. Authorized user is not responsibile for the liability. Banks should be informed of the death so that they could change the account status to deceased.

Collection agencies may try to recover money from the family using various tactics but legally the banks are supposed to eat the loss.


Quote:
Originally Posted by mohandasnikhil View Post
One of my Uncle's recently passed away.He had a plethora of Credit Cards issued from multiple banks. While reconciling his assets and liabilities recently we got to know that his Credit Card outstanding is a substantial amount. Now I'm wondering
1. Whether this liability would pass onto the legal heirs?
2. Since CCs are an unsecured credit line, what happens if the legal heirs do not pay the amount. (Since my uncle has passed away the CIBIL rating doesn't matter)
3. What action could the Banks take to recover the debt?
4. What should be the future course of action for the legal heirs in terms of paying/settling or distancing themselves from this debt?
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Old 3rd July 2013, 02:36   #1151
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Default Re: The Credit Card Thread

Quote:
Originally Posted by mohandasnikhil View Post
One of my Uncle's recently passed away.He had a plethora of Credit Cards issued from multiple banks. While reconciling his assets and liabilities recently we got to know that his Credit Card outstanding is a substantial amount. Now I'm wondering
1. Whether this liability would pass onto the legal heirs?
2. Since CCs are an unsecured credit line, what happens if the legal heirs do not pay the amount. (Since my uncle has passed away the CIBIL rating doesn't matter)
3. What action could the Banks take to recover the debt?
4. What should be the future course of action for the legal heirs in terms of paying/settling or distancing themselves from this debt?
The card companies have thought of that already. They have claim on the estate of the deceased person that is subordinate only to secured debt - the cardholder agreement that you sign with the issuing bank covers this point. It is the responsibility of the executor of the deceased's estate to make sure they are paid off. If the person died intestate (ie, no will) then as per Indian Succession Act the court appoints an administrator (usually a lawyer) who is the executor.

For example, see SBI's cardholder agreement (clause 9.5):

https://www.sbicard.com/header_foote..._0_011915.html

"The total Outstanding on the Card Account [...] will become immediately due on [...] death of the Primary Cardholder... The Primary Cardholder's estate will be responsible for settling any Outstanding on the Card Account..."
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Old 3rd July 2013, 13:38   #1152
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Default Re: The Credit Card Thread

Folks I received this emailer a couple of days ago from HDFC Bank. It seems too good to be true as they talk about a repayment holiday of 3 months for all retail spends. No interest or processing fee either. Have a look!
Attached Images
  
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Old 3rd July 2013, 13:59   #1153
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Default Re: The Credit Card Thread

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Originally Posted by nkapoor777 View Post
Folks I received this emailer a couple of days ago from HDFC Bank. It seems too good to be true as they talk about a repayment holiday of 3 months for all retail spends. No interest or processing fee either. Have a look!
There is no fine print here. i got for 5 months last year from HDFC. I paid at the end of 5 months
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Old 3rd July 2013, 14:04   #1154
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There is no fine print here. i got for 5 months last year from HDFC. I paid at the end of 5 months
Thanks rkg for clarifying! I have still written to customer care just to be doubly sure. Good one though from HDFC!
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Old 3rd July 2013, 14:44   #1155
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Default Re: The Credit Card Thread

HDFC bank strikes again:

I have been an HDFC credit card customer for a while now. Since, I have a lot of cards acquired over the years (and I have been on a spree to reduce them for a while now and use them in very limited numbers). Now I had over 4,000 plus points on the card which I had not redeemed (4,000 + roughly amounts to having spent INR 4,00,000).

Last Friday, they sent me an SMS stating that my card is getting cancelled for prolonged inactivity. I was happy at this message but sad for loosing the points; so I called up the customer care and I was advised that If i use the card, they wont cancel it; I was okay with this suggestion as I thought I'll redeem the points by then and cancel the card.

Now comes the high point; On saturday I used the card to make some payments and was hoping that the card will remain active.

My son was rushed to the hospital again on Monday in Pediatric ICU and I had the opportunity to use the card again for making security deposit payments. I gave my HDFC card and voila! it was declined. It was cancelled by the bank already! Then I gave my other card for making the necessary payments and admitted my son.

My grouse when I spoke to them now:
  • Not ready to take a complaint against their representative who gave a false information that If I use the card, it'll remain activated.
  • Cheap tactics of cancelling the card over a weekend not allowing the customer to redeem his/her points.
  • Still insisting that I apply for a new card but not ready to accept their mistakes.

While I was speaking to them, I kept on saying that I support the bank's policy of cancelling the card for prolonged inactivity; but 1/2 working day TAT is not how it should be. They should also allow the customer to redeem his points.


Now, I have lost the card, lost my points plus I owe the bank some money as the idiot banker suggested me to swipe the card


All in all, my credit card was the only relationship I had with HDFC which was a happy story, but it too eventually turned sour.


1 credit card cancelled. Good Riddance.
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