Bad Credit Cards - 10 Things You Need To Know

Bad Credit Cards : 

A credit card can be a blessing in disguise when you have no cash in your pocket. It is also a convenient way to carry money and is much easier to make payments with credit cards. But there are instances when credit cards can become bad for you. In fact, if not used with proper care, a credit card can ruin your finances completely. Here are 10 things you should know to recognize that your credit card is bad:

1. When you do not pay your bills on time: The first rule of using credit cards is to pay before the due date. If you fail to do this, you will be charged an exorbitant interest on the unpaid amount, which can be as high as 3.5% per month. Continuing this will not only entangle you in a financial mess, but it will also harm your credit score significantly. Further, late payment fees can harm you as well.
2. When you exceed your credit limit: Banks set the credit limit based on your credit standing, spend patterns etc. It is advisable not to spend more than 75% of the credit limit. If the credit limit is breached, it will again harm your credit score. Some banks stop usage of card when this happens.
3. When you regularly pay only the minimum amount payable: Paying the minimum amount can allow you to continue using the card. But remember that the unpaid amount goes into revolving credit and attracts interest. This ballooning of credit can definitely land you in trouble.
4. When you spend excessively albeit within the credit limit: Some credit card users take care not to exceed the credit limit, but do not think much about spending prudently. Remember that spending too close to the credit limit can also harm your credit score. Further, when you spend excessively, your finances can be greatly harmed, because at the end of the day, you will be the one to pay the bill.
5. When you use it to regularly withdraw cash: Credit cards allow you to withdraw cash. This feature should be used in an emergency. However, when this is made a habit, it can burn a hole in your pocket, as the charges for cash withdrawal are quite steep.
6. When you use your card only to get reward points: Sometimes, one uses the credit card only to gather reward points. If this becomes a habit, then you may end up spending excessively on unnecessary things.
7. When you use multiple cards: Using multiple cards can again land you in trouble. You may end up paying bills throughout the month as the payment becomes due for the different cards on different dates.
8. When you spend excessively while traveling abroad: Almost all major credit cards allow you to use them when you are traveling abroad. While this looks convenient, remember to check on the charges for such usage. Also don’t forget the exchange rate differential. It may be less expensive to use other payment modes when traveling abroad like using prepaid cards or travelers cheques.
9. When you are not careful about your CVV and PIN: Carelessness on the CVV or PIN of your credit card can again make your credit card ‘bad’ for you. This means you are giving an opportunity for someone else to use your card. This is disastrous and therefore you must be extremely careful of such passwords.
10. When you constantly transfer your balance to new cards: Some people transfer their unpaid balance to a new card or another existing card, if they are unable to pay it. You may save on the interest temporarily, but the interest will start to accrue after the initial period. Further, you will also have to pay balance transfer charges.

Read more ...

Check out the Best Credit Cards in India 2014

The world has been swept by the plastic money wave, and India is no different. Although the use of credit cards in India is much lower than other developed countries, there are several options to choose from various leading banks in the country. There are cards catering to specific needs like shopping, travel, entertainment, etc. and also catering to specific individuals like salaried class, women, doctors, etc. Here we list the best credit cards in India across different categories:

Citibank Rewards Card: A rewards-focused card, the rewards earned are high at 10 points for every Rs. 125 spent at partner outlets. Beyond this, you can earn 1 point on all other purchases. There is no joining fee, but annual fee is Rs. 1000. This can be waived if total annual spend exceeds Rs. 30000. You earn bonus points on special occasions, on crossing certain amount of expenses and on renewal. The points earned do not expire. Interest rate is 3.25% per month.

HDFC Bank Titanium Times Card: You can earn reward points of 2 points for every Rs. 150 spent. The joining fee and annual fee on this card is Rs. 500 each. There are welcome benefits in the form of gift vouchers across shopping, apparel and dining and discount offers on movie and dining and fuel surcharge waiver. Interest rate is at 3.15% per month. Interest free credit facility of upto 50 days is available from the date of purchase.

Corporation Bank CorpBank Gold Card: At an interest rate of 2.25% per month, this card scores well on account of the cost. There is no joining fee or renewal fee. You should however be a customer of the bank for atleast 3 months with a minimum net annual income of Rs. 2 lakhs. The free credit period is upto 50 days. The card gives you reward points of 1 point for every Rs. 150 spent.

SBI Platinum Card: SBI’s Platinum card is expensive with a joining fee of Rs. 2,999 and annual fee of Rs. 2,999. However, reward points earned are high at 10 points for every Rs.100 spent on dining, department stores and international spends and 2 points for every Rs. 100 spent on other transactions. There are a whole host of other benefits like welcome gift worth Rs. 3000, spend rewards worth Rs.3000, Rs. 3000 worth anniversary gift, airport lounge access, specialized concierge facilities for various services and fuel surcharge waiver. Interest rate is 3.35% per month.

American Express Payback Credit Card: This card is good for shopping purposes and focuses on rewarding payback points. You can get 3 payback points for every Rs. 100 spent on behalf of American Express plus multiple points from more than 40 payback partners, thus giving you extra earning benefit. You can also get welcome benefits in the form of discount vouchers and bonus payback points depending on your expenses in the initial 60 days. There are offers on dining, movie ticket and travel spend as well. However, the annual fee is Rs. 750 in the first year and Rs. 1500 from second year onwards.

ICICI Bank Instant Titanium Credit Card: This card is issued against your fixed deposit and can be got instantly. The card gives you Rs. 200 worth movie tickets every month. You also get minimum 15% discount on dining through the bank’s Culinary Treats program. You can earn 3 payback points for every Rs. 100 spent and also enjoy a fuel surcharge waiver in select HPCL petrol pumps. Interest rate is comparatively low at 2.49% per month.

For more information visit the given link hope that helps you -  http://www.bankbazaar.com/credit-card.html

Read more ...

Apply for Credit Card and Make Payments Conveniently

Vikram was a little hesitant while applying for his first credit card because he knew that even a small mistake could cost him a lot of money. For this reason, he decided to wait and research regarding the best credit cards available in the market. This is actually what a user needs to do as acquiring a credit card can prove to be one of the most intimidating tasks ever. When you apply for credit card, the bank does a complete background check on you and ensures that you have a good credit history. If they find your creditworthiness and credit score to be good, you can get your credit card in no time. In case you fail to fulfill the eligibility requirements, you might have to start afresh which will cost you a lot of time and money.

In actuality, there are various things to know about credit card application and a user needs to ensure that he/she keeps a track of all the essential pointers so that a good credit card can be acquired.

Information and Documents Required

Anyone who wants to apply for credit card needs to provide certain information and documents to the bank so that their application can be processed smoothly. 

• Full name and birth date

• Email address, home address and address proof

• Information on present and previous employers

• Key information on other cards you hold (If any)

• Income proof

• Salary slips

• Bank account statements

• ID proof

The photocopies of all such documents are to be submitted along with the application form. 

These documents must be duly attested by the borrower and any failure in this may result in the application getting rejected.

Comparing the Interest Rates and Special Features

The process of applying for credit cards usually starts when you choose a bank for granting you credit card services. This is also the most significant step that you’ll take because you have to share all your personal details with the bank that offers you a credit card. There are innumerable factors which are to be taken into consideration such as the reward points offered by the bank, the cash back discounts and the processing charges levied by the bank. As a smart user, you must apply for credit card only when you’ve thoroughly gone through the different credit card schemes available in the market. 

Have a closer look at the top features being offered by the banking institutions providing credit cards.

Banking Institution	Special Features
HSBC Credit Card	Domestic flight ticket vouchers, movie ticket vouchers, enhanced rewards program
American Express Credit Card	5X membership points, exclusive dining offers, exceptional reward point programs
ING Vysya Credit Card	No annual fee, 0% fuel surcharge, double reward points for international expenditures
SBI Credit Card	Discount deals on hotels, best airfare deals, car rental deals
ICICI Credit Card	Discount on airfare, exclusive reward points programs

As on 18th March, 2014

Go for a credit card that offers a moderate limit :

Some credit card companies offer the kind of credit history required to get approved for the listed credit cards. If you’re planning to get your first credit card, it is crucial for you to choose a card which offers a moderate purchase limit. Usually, people tend to spend unabashedly when they get credit cards for the first time. Avoiding such a situation will help you in not just choosing the right card but also using it in the right manner.

Don’t take denials too seriously

Anyone who applies for a credit card must stay aware for the impending rejection. So, you should never take such denials seriously, but instead you must focus hard on improving your credit score so that you don’t get rejected the next time. Find a secured credit card which comes along with innumerable reward points and exclusive programs such as free airline and movie tickets.

The process of applying for a credit card can be made much more convenient if you already know the different schemes being offered in the market.

Read more ...