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Old 5th May 2021, 16:22   #4396
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Default Re: The Credit Card Thread

Credit cards are a boon IF used sensibly.
Apart from the convenience of having a large sum at your disposal during emergencies, it's the points and rewards which are the biggest attraction to me at least.
On numerous occasions, I have redeemed them for flight tickets and hotel stays which exceeds the annual charge you pay for them.
Unless you don't start relying on Credit cards it's a very safe game but other way round should be avoided at all costs.
I have been fortunate to have all the cards 4 of them) all lifetime free except one for which the annual fee is still worth considering the rewards I am getting.
For Instance, the card provides me vouchers for 10k on a certain annual spend and the annual charges are 5k so still, I get a benefit of 5k + the points accrued yearly are still intact.

Quick question for the forum members. Paytm has recently started adding charges while recharging the wallet using Credit cards.
Any alternate way out to get it recharged without paying that sum. Being more specific I wanted to know how can I use Amex cards to recharge Paytm wallet without paying that charge.

Thanks in advance.

Last edited by Artyom : 5th May 2021 at 16:51.
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Old 5th May 2021, 16:37   #4397
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Default Re: The Credit Card Thread

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Originally Posted by Jaguar View Post
There are multiple instances, especially during emergencies where credit cards are extremely useful, if not indispensable.
Emergency line of credit is one of the few use-cases these days that require a credit card. Don't think anyone here would argue against it.

Though, in the specific case of medical emergency you should have adequate medical insurance too.

My policy is to not pay for credit card. I haven't paid any annual fee/joining fee/whatever fee on any card for 15+ years now. I pay the card issuer whatever I charge on the card in full each month. But I also take comfort in the fact that I can raise several 7-figures in an emergency situation without batting an eye.
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Old 5th May 2021, 17:33   #4398
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Default Re: The Credit Card Thread

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Originally Posted by Artyom View Post
Quick question for the forum members. Paytm has recently started adding charges while recharging the wallet using Credit cards.
Any alternate way out to get it recharged without paying that sum. Being more specific I wanted to know how can I use Amex cards to recharge Paytm wallet without paying that charge.

Thanks in advance.
What i do is load money in paytm bank & use it in all transactions. It's difficult to add money in wallet without charges.
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Old 5th May 2021, 17:34   #4399
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Default Re: The Credit Card Thread

Simple rules that I follow:
1. Don’t accumulate debt through credit cards
2. Pay all outstanding amount by due date - No EMIs even if interest free
3. Avoid cards with annual charges unless 100% sure of getting the amount back
4. All international transactions need to be booked through credit card (works better in case of dispute resolution)

Been using credit cards for 10 years now, I consider it as a big boon. No debit card can offer the kind of rewards/returns that a good credit card provides.
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Old 5th May 2021, 17:55   #4400
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Default Re: The Credit Card Thread

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Originally Posted by binand View Post
Though, in the specific case of medical emergency you should have adequate medical insurance too.

My policy is to not pay for credit card. I haven't paid any annual fee/joining fee/whatever fee on any card for 15+ years now. I pay the card issuer whatever I charge on the card in full each month. But I also take comfort in the fact that I can raise several 7-figures in an emergency situation without batting an eye.
There are instances where medical insurance is not possible/available, especially if the person is above 80. There are also hospitals that do not have a cashless facility. My colleague could get a bed in only such a hospital for his covid treatment. Our company provides us good insurance coverage but that was of no use in this case.

100% agree with your CC usage and fee policy. I fell into the trap of an Amex paid card once, but the bonus rewards made up for it. Now, I too don't have any paid cards.
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Old 6th May 2021, 11:49   #4401
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Default Re: The Credit Card Thread

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Originally Posted by warrioraks View Post
Simple rules that I follow:
1. Donít accumulate debt through credit cards
2. Pay all outstanding amount by due date - No EMIs even if interest free
3. Avoid cards with annual charges unless 100% sure of getting the amount back
4. All international transactions need to be booked through credit card (works better in case of dispute resolution)

Been using credit cards for 10 years now, I consider it as a big boon. No debit card can offer the kind of rewards/returns that a good credit card provides.
That is precisely what I do.

If for nothing else, you get a credit for upto 50 days not only with no charges, but you get points (does not matter how measly) that can be used later. I take the points as a reward for using cards.

Yes there are times especially during medical emergencies, when you have to pay first and argue later. Cards save you a lot of hassle and cash handling.
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Old 7th May 2021, 12:37   #4402
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Default Re: The Credit Card Thread

I see a lot of people trying to show that people using credit cards are relying on debt to cover for their expenses. As a matter of fact, I know of a good amount of financial sound people using credit cards to their benefits and saving 8-10% of their total expenditure of the year by using credit cards.

So anybody who feels they are doing very well financially by not using credit cards at all are actually paying about 8-10% extra money every year on their regular expenses. This translates to about 80K to 1 Lac on a spending of approx. 10 Lacs annually to quantify the losses.

That money is good enough for a 5 days vacation for a family of three within India.

My next point is towards the belief that people should keep only Life-Time Free credit cards. I would not negate that belief. Its a good thing to do if you are not a regular credit card user. If you are a regular credit card user and have been paying all your bills on time, it is my strong recommendation to at least have a look at the benefits of cards with Annual Fees.

A very conservative estimate of mine puts the returns of Annual Fees of Credit Cards paid till date in my life to be around 8x of the Annual fee. Had reached about 20x in 2018 & 2019 and dropped because I opted for a card with a humongous annual fee. Even the stock market doesn't give this consistent returns.

Just kidding on that comparison with stock market.
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Old 7th May 2021, 13:06   #4403
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Default Re: The Credit Card Thread

There is also the added benefit of earning interest on your funds while making use of the 50 day interest free credit offered by most credit cards. If you monthly spend on the cards is around 50K, for a 50 day period that averages to approximately 85K. Interest on 85K at a conservative 6% amounts to 425 rupees per month, free money apart from the rewards & points that you anyway receive for card usage.
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Old 9th May 2021, 08:05   #4404
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Default Re: The Credit Card Thread

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Originally Posted by kannan666 View Post
There is also the added benefit of earning interest on your funds while making use of the 50 day interest free credit offered by most credit cards. If you monthly spend on the cards is around 50K, for a 50 day period that averages to approximately 85K. Interest on 85K at a conservative 6% amounts to 425 rupees per month, free money apart from the rewards & points that you anyway receive for card usage.
I see it differently, the cost of the goods we purchase already factor in the MDR charges and reward points we get. So, in a sense we don't gain much in reality.
However, if one uses cash, one would end up losing money since the overheads are already factored into the retail price.
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Old 9th May 2021, 08:27   #4405
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Default Re: The Credit Card Thread

Hi Guys,

Query to all CC users on the forum. Had purchased phone on HDFC debit card EMIs(in 2019, 1/6 EMIs bounced due to wrong account linking but the charges were immediately paid up in next installment). I had applied for Icici Amazon credit card card in Apr 2021 but my application got rejected (no reason mentioned on website). Any idea where I can check cancellation reason as no response is received from email id ?

I do not have a dying need for credit card but just wanted to have one for good credit history purposes. Currently using add on credit card issued on father's name.
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Old 9th May 2021, 09:05   #4406
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Default Re: The Credit Card Thread

Doubt on paying bills via NEFT using Credit Card

I have to pay off an increased society bill this quater owing to the repairs undertaken. It has been proportionately divided in 10 installments. Now, considering the amount I wish to use my Credit Card. The society permits only NEFT/RTGS transfers.

Can I pay using my credit card in an NEFT transaction? Then pay off the bill like any other transaction.
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Old 9th May 2021, 09:25   #4407
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Default Re: The Credit Card Thread

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Originally Posted by VWAllstar View Post
Doubt on paying bills via NEFT using Credit Card

I have to pay off an increased society bill this quater owing to the repairs undertaken. It has been proportionately divided in 10 installments. Now, considering the amount I wish to use my Credit Card. The society permits only NEFT/RTGS transfers.

Can I pay using my credit card in an NEFT transaction? Then pay off the bill like any other transaction.
It's not possible to use credit card NEFT transaction.
An alternative is to use one of the rent/society maintenance payment platforms like Nobroker, mygate or others.
Their platform allows you to use the account/bank details of the society and pay it through credit card. There are charges involved ofcourse.
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Old 9th May 2021, 12:05   #4408
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Default Re: The Credit Card Thread

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Originally Posted by VWAllstar View Post
Doubt on paying bills via NEFT using Credit Card

I have to pay off an increased society bill this quater owing to the repairs undertaken. It has been proportionately divided in 10 installments. Now, considering the amount I wish to use my Credit Card. The society permits only NEFT/RTGS transfers.

Can I pay using my credit card in an NEFT transaction? Then pay off the bill like any other transaction.
Some platforms like MobiKwik also allow you to deposit the money into your bank account from credit cards for a small fee. You can do this and pay from the bank, indirect way of using the credit card.
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Old 9th May 2021, 12:22   #4409
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Default Re: The Credit Card Thread

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Originally Posted by Artyom View Post
Quick question for the forum members. Paytm has recently started adding charges while recharging the wallet using Credit cards.
Any alternate way out to get it recharged without paying that sum. Being more specific I wanted to know how can I use Amex cards to recharge Paytm wallet without paying that charge.
There is no way to avoid fee while using CC to recharge Paytm wallet. If you are looking for ways to make 4 txns of Rs.1500 each, then Amazon Pay is one option. I haven't come across any other wallet recharge that would accept Amex.
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Old 9th May 2021, 12:28   #4410
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Originally Posted by tejas08 View Post
I know of a good amount of financial sound people using credit cards to their benefits and saving 8-10% of their total expenditure of the year by using credit cards.
How do you figure that? That people are saving 8-10% of expenditure over a year by using credit cards?

No doubt there is some benefit to be had by judiciously using the loyalty/reward system and free credit period; but (I can only speak for myself here) I believe it requires significant amount of planning and timing and brand loyalty all of which I don't want to indulge in.
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