Interest free cash offer from SCB but what is the catch?

Guna · 8th December 2009, 16:22

Quote:

Originally Posted by pjbiju

I have used their 3 months interest free cash (they charge 2% processing fee - which is their interest) offer a couple of times. I made sure to pay back everything before 90 days.

This is simillar except that it is for 6 months and the processing fee is around 1%. Probably I will look through the terms and conditions once again and accept the DD

Seeler_Rebeiro · 8th December 2009, 16:26

Quote:

Originally Posted by Guna

I always had the credit card and savings account from the same bank as it is easier to pay the credit card bills but never faced this problem, even when I had overshoot the due date etc. Unlesss someone has opted for the auto payment option, how can they transfer the money without the consent of the account holder? This must be done under some special circumstances.

Don't trust your luck too long.

bblost · 8th December 2009, 16:29

I have a question.

If you take a loan for 3 months or 90 days.
Then there are atleast 3 billing cycles in between.

The amount would show in the total amount due.
So will it calculated into the minimum amount to pay.

i.e. although the loan is for 90 days interest free. Would you need to pay the minimum or 2% every month.

Seeler_Rebeiro · 8th December 2009, 16:40

Quote:

Originally Posted by bblost

I have a question.

If you take a loan for 3 months or 90 days.
Then there are atleast 3 billing cycles in between.

The amount would show in the total amount due.
So will it calculated into the minimum amount to pay.

i.e. although the loan is for 90 days interest free. Would you need to pay the minimum or 2% every month.

No, 2 accounts are created. One your main CC account and the other the merchant account which is created. The min due is based on the outstanding on your main CC account. This was the case for me. But please verify with the advisor.
Also when you pay, you need to call and transfer amount to the merchant account.

shankar.balan · 8th December 2009, 17:15

If there is an overdue outstanding on a credit card, the bank is perfectly within its rights to "collect" its outstanding debts via the bank account and/or if required, through the employer.

This is why it is a seriously bad idea to rotate credit on the credit card. Always pay up the total amount due in full on or before the due date.

Else one will end up paying massive amounts towards interest and other levies which can be extremely difficult if it is allowed to go out of control.

Quote:

Originally Posted by Guna

I always had the credit card and savings account from the same bank as it is easier to pay the credit card bills but never faced this problem, even when I had overshoot the due date etc. Unlesss someone has opted for the auto payment option, how can they transfer the money without the consent of the account holder? This must be done under some special circumstances.

Guna · 9th December 2009, 10:26

Quote:

Originally Posted by Seeler_Rebeiro

Don't trust your luck too long.

Of course I will retain the credit card/savings combination but I will not get it in to messy situations.

Quote:

Originally Posted by shankar.balan

If there is an overdue outstanding on a credit card, the bank is perfectly within its rights to "collect" its outstanding debts via the bank account and/or if required, through the employer.

This is why it is a seriously bad idea to rotate credit on the credit card. Always pay up the total amount due in full on or before the due date.

Else one will end up paying massive amounts towards interest and other levies which can be extremely difficult if it is allowed to go out of control.

Still not sure if they can directly collect from the savings account just becasue one has overshot the due date. It may happen if he gets in to a pattern of not paying.
Of course I agree, it is not a good idea not to pay the credit card bills on time.

sanjayc · 9th December 2009, 14:00

Banks do not have have the rights to transfer money from one a/c to another (savings/current/cc whatever) unless and until some forms have been signed by the account holder authorizing such payments/transfers like ECS/auto debit etc.

Another catch maybe if the CC is issued based on the customer holding a savings a/c first, in which case the terms & conditions need to be read.

Hence, the best way to get a CC from the same bank where a savings a/c is also there is to apply separately and get this linked.

8th December 2009, 16:29	#18
bblost Team-BHP Support Join Date: Jul 2007 Location: Hyderabad Posts: 11,008 Thanked: 15,360 Times View My Garage	I have a question. If you take a loan for 3 months or 90 days. Then there are atleast 3 billing cycles in between. The amount would show in the total amount due. So will it calculated into the minimum amount to pay. i.e. although the loan is for 90 days interest free. Would you need to pay the minimum or 2% every month.
	() Thanks

9th December 2009, 14:00	#22
sanjayc BHPian Join Date: Nov 2009 Location: Chennai Posts: 952 Thanked: 8 Times	Banks do not have have the rights to transfer money from one a/c to another (savings/current/cc whatever) unless and until some forms have been signed by the account holder authorizing such payments/transfers like ECS/auto debit etc. Another catch maybe if the CC is issued based on the customer holding a savings a/c first, in which case the terms & conditions need to be read. Hence, the best way to get a CC from the same bank where a savings a/c is also there is to apply separately and get this linked.
	() Thanks