Team-BHP (https://www.team-bhp.com/forum/)

-   Shifting gears (https://www.team-bhp.com/forum/shifting-gears/)

-   -   The Credit Card Thread (https://www.team-bhp.com/forum/shifting-gears/92603-credit-card-thread-113.html)

I have the IOC Citibank card - Can we redeem the points accumulated in this card in the restaurants as well? And the way we redeem is just go to restaurant listed on their website and ask them to swipe points - thats it?

Bhai I've never tried using IOC card in a restaurant.
I use IOC strictly for fuel only.
For rest like shopping/restaurants I use the Rewards card.
Yes you can ask the attendent to swipe points, provided you have accumulated that much points in your card.

Any idea which card charges the lowest cross currency markup for transactions in foreign currency and on foreign ATMs?

Any list for comparison?

The most premium card, I have, is HDFC Regalia (which has 2% forex markup). Apart from that, platinum/titanium (not specific to travel) visa cards of citi, kotak, icici, hsbc. I also have Standard Chartered Super Value Titanium, and HDFC Diner Club International.

I usually redeem them at IOC HSR layout. The one inside the layout. Another one is at indiranagar, the one at the beginning of old Madras road.

On Foreign ATMs I prefer ATM/Debit cards. I think my StanC Platinum ostensibly has zero charge. I have used it in ATMs in the gulf.

StanC Infinite Credit Card also is zero charge. This may be true for all 'Black' cards. I am not sure about the StanC Preferred. Titanium is not zero forex.

However, there was a discussion earlier on the thread that no card is actually zero charge.

Usage of Credit Cards on Foreign / Domestic ATMs qualifies as Cash Advance and you will be charged Interest . Spend on Merchant establishments are different though . Usually most of Banks will first convert foreign spends to USD and then to INR implying higher rate of conversion in case spends are not in USD . Travel cards in currency where you will be travelling will be much economical to use & carry.

HDFC Credit Card is offering me a loan of upto Rs. 3 lakh for a period of upto 4 years at 11.88%. Seems like a good deal at a time when auto loan is around 11% and personal loan at 14%. What do you all say?

Thank you all in advance, considering this thread is has no thanks button.

Couple of things to check:

1. Are there upfront costs like processing fee etc.? These could alter the APR of the loan. Check with your bank branch to see the best personal loan offer they can give you.

2. Credit card loans sometimes have a clause that you are not eligible for revolving credit during the period the loan is unpaid. Is that a cause for concern?

Remember, it is still unsecured loan, so there will be a lot of fine print.

I don't have any credit card now, but planning to get one. My salary account is in ICICI bank. I regularly get mails about their chip card.
Now here are my queries:-
Is is ok to buy a card from account operating bank? I mean can they deduct any amount from my account without my knowledge?
Is it possible to get a card with a very low credit limit as I want to use for online purchases (less costly items).?
Should be able to get fuel surcharge waiver at all fuel stations.

Thanks.

Is it OK? Yes, and it might even be convenient and the recommended option. Can they do it? I have heard of cases where they've done it. Is it legal for them to do so? I think yes; it is part of the T&C they make you accept at the time of applying. Is it ethical? I am of the firm belief that it is not a very ethical practice, but then my views on ethics and most banks' legal cells' views on ethics don't coincide.
The purpose of credit card sales team is to sell to you the highest credit limit you are eligible for (which is usually N times your monthly income, where N = 3 or so). You really have to work hard to get them to reduce it. All the best!
Not all cards offer this. You have to do your research. HDFC Bank, Axis Bank and SCB are the ones I know of with this facility.

Rajiv,

You are one of the few lucky ones to have stayed away from this quick sand.
As a fellow brother, my sincere advice is to stay off this addiction.

If you get in, there is no easy way out. Its a vicious circle with never ending payment cycles!!
Stay with debit, stay happy..

Thanks Arnab, advice worth considering.
As I said presently I don't have a card.
But long back sometime around 2006 I had an HSBC Gold card. During those times agents used to stand outside office gate with lifetime free cards. So that's how I got it.
But my usage was so rare that HSBC themselves cancelled the card in 2012 citing non usage and security concerns. I was more than happy.
But as you know during that time period there was hardly any online shopping done. Now if I want to buy something from overseas sites I don't have a payment option.
That's why I am looking for a card now, otherwise I am a debit card person.

I know Arnab means well but, like most things in life, credit cards have their pros and cons. If used wisely, they can be a tremendous asset.

I got my first credit card nearly 20 years ago and have been using them ever since. Here are some "best practices" from my own experience that may help you make the most of them and hopefully minimize the risk:
- Use the card only at trusted establishments and retain your copy of the receipt in each case. I use my card at good restaurants, hotels and petrol stations. The slightest whiff of suspicion and I revert to cash payments.
- Get a card that reimburses fuel surcharge. 2.5% of my monthly petrol bill comes to quite a big amount.
- Never use your credit card online. Of course it is much safer these days with "Verified by Visa" and the like, but you never know where the number you enter on a merchant site may make its way. There are much safer options these days (Billdesk, COD etc.)
- Credit cards are invaluable when it comes to booking international air tickets, conference fees, etc. where the amount spent is typically high. Even here, if you have an option to go pay at the airline office rather than pay online, exercise it.
- When you travel abroad, using credit card to pay for tickets etc may be more convenient than lugging huge amounts of travel exchange around, converting it, etc.
- A caveat: keep a reasonable credit limit. Typically banks will give you a limit commensurate with your earnings (which can be flattering) but you can instruct them voluntarily to lower it. This prevents the temptation to "go crazy" and is also useful in group situations where one person picks up the tab and the rest promise to pay him later (Have noticed that seldom happens! :D)
- Most important- pay your credit card bill promptly! Do not miss the due date even by a day since banks are ruthless when it comes to late charges, financial charges and interest (the former may get reversed but the latter two almost never). If you MUST roll your balance over, pay the minimum due promptly. Some banks allow you to set up a standing instruction to debit the minimum amount due on the due date in case you forget about it. Use this and save some interest and penalties!

Hi noopster, as I had mentioned in my earlier post, this is the specific reason for which I am considering applying for a credit card. As far as I know overseas shopping sites are not accepting debit cards.
The other points that you mentioned are spot on.
Thanks.

Thanks. I should clarify that I have myself used my credit cards online without issues for the most part. One time my corporate card was misused to buy air tickets to Atlanta and pay someone's TOEFL fees. But that was more likely attributable to a rogue hotel employee in Nairobi in whose possession my card (and CVV) were for some time as I waited to check out. That reminds me: do scratch off the CVV from the back of your card and remember it like you would any other PIN.