Success Blog

It is important to get hold of your credit card before it is too late. I think credit card should be used more as a back up and convinience of payment rather than easy access to money. If you plan properly it can be a great asset. Recently, the TOI published some tips on credit card usage. Let me share that with you all:

1. Read the terms and conditions carefully and evaluate before signing

2. Advisable to have not more than 2 cards

3. Understand the billing cycles and capitalize on the interest free period

4. Restrict your credit card limit to 4 - 6 times of your monthly salary

5. Don’t use credit card for cash withdrawls. The interest rate are very high

6. Tighten your spending in line with your budget. Don’t be an impulsive buyer

7. Try to clear the entire outstanding at one go. Don’t succumb to the minimum due payable. You end up paying high interest along with taxes

8. Avoid taking EMI option for big purchases. It will push you into a long repayment cycle at high cost

9. 5% of your salary can be a credit card bill for personal expenses

10. Go for a holistic saving plan, it’s better option to invest rather han taking credit and spending depreciating assents

- Written by debojyoti Ghosh and originally published in Times of India.