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The dark side of the credit cards

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Deal Cadet
suryadimer

Owning credit cards and getting offers a side.If you use credit cards regularly without planning there is other side of it. It unnecessarily increases your loans and creates false beliefs of what exactly you have. As long as you dont maintain any active EMIs and you can pay pending debits as soon as you availed offers then it is good. Credit cards is a trap created by banks to earn intrests on EMI and late payments.

For example , you have 50 lakhs bank balance and 2 lakh outstanding credit card EMI which you pay regularly then it is false belief that you still have 50 lakh bank balance. Many of inexperienced credit card owners think this way. if you are realy not worried about 1-5% cashbacks of payments then better not to have any credit card and loans. it is okay to maintain if you are paying complete amout after availing credit card offer.

Never buy anything big on credit cards thinking that you are paying small EMI. Before doing such things imagine if you really purchase same item on your debit card on singe payment.

Matured way of using credit cards is to pay credit card balance immediately from bank balance as soon as you use the offer and staying away from unnecessary EMI purchases. Have 1-2 credit cards max and don't accept any credit card even issuing bank offers for life time free beyond 1-2.

Many people I know felt into trap and ended up paying interests and late fees. Life throws many financial challenges and get ready . Never have too many loans!!

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Deal Lieutenant Deal Lieutenant
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This all happens because people dont understand PERCENTAGE in practical way:) 

Percentage of interest hurts IN COMPOUNDING WAY:) -> reverse logic of COMPOUNDING IN ASSETS

so if one understood percentage of how it works THEY WOULD NEVER TOOK EMI ON CREDIT CARDS:) 



HOW CREDIT CARD corrupts your mind?

1) bill date forgetting DONT TRUST ANY APPS, if you can't remember all your credit card "statement date + due date" WITHOUT WRITING IT DOWN, then credit card is NOT FOR YOU

2) if you seem to think CREDIT CARD BALANCE AS YOUR BANK BALANCE -> then credit card is not for you

3) you need to BUDGET BEFORE EVERY SPENDING or else credit card is not for you (first learn what is budget)



Tips for safe discipline AROUND CREDIT CARD USAGE:

1) try to remember all the dates around credit cards

2) never think credit card is bank account, just think of it as YOU TOOK LOAN FROM YOUR OFFICE AND YOU NEED TO PAY IT IN FULL BEFORE DUE DATE, TO KEEP JOB UP OR ELSE YOU WILL LOOSE JOB kinda thought you need ALWAYS, then you will be safe

3) just keep YOUR SPENDING MONEY ALREADY IN BANK and use THAT EXACT AMOUNT IN CREDIT CARD and then you are safe because you can repay instant the moment bill generates:) 

Budding Star Budding Star
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Even after utilising emi offer on card , i close emi and pay instantly after bill generation joy joy

Deal Subedar Deal Subedar
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I did it all!! Paying down payment for the first car through CC, withdrawing cash, EMI's, balance transfers, min/part payment, missed payment  and owning multiple credit cards. Literally every available CC at one point. 

BUT since last 15 years or so, maintained just one CC and pay the whole outstanding on the day statement is generated. I use CC just for points and discount offers. Pay not even a dime extra!!

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Deal Lieutenant Deal Lieutenant
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This all happens because people dont understand PERCENTAGE in practical way:) 

Percentage of interest hurts IN COMPOUNDING WAY:) -> reverse logic of COMPOUNDING IN ASSETS

so if one understood percentage of how it works THEY WOULD NEVER TOOK EMI ON CREDIT CARDS:) 



HOW CREDIT CARD corrupts your mind?

1) bill date forgetting DONT TRUST ANY APPS, if you can't remember all your credit card "statement date + due date" WITHOUT WRITING IT DOWN, then credit card is NOT FOR YOU

2) if you seem to think CREDIT CARD BALANCE AS YOUR BANK BALANCE -> then credit card is not for you

3) you need to BUDGET BEFORE EVERY SPENDING or else credit card is not for you (first learn what is budget)



Tips for safe discipline AROUND CREDIT CARD USAGE:

1) try to remember all the dates around credit cards

2) never think credit card is bank account, just think of it as YOU TOOK LOAN FROM YOUR OFFICE AND YOU NEED TO PAY IT IN FULL BEFORE DUE DATE, TO KEEP JOB UP OR ELSE YOU WILL LOOSE JOB kinda thought you need ALWAYS, then you will be safe

3) just keep YOUR SPENDING MONEY ALREADY IN BANK and use THAT EXACT AMOUNT IN CREDIT CARD and then you are safe because you can repay instant the moment bill generates:) 

Deal Lieutenant Deal Lieutenant
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best way to use cc is to use it as a debit card , i use it as a tool to loot banks  😝 but always spend on things i will spend on regardless of having cc or not ,many of people i know use cc as they bank balance and buy stupid expensive stuff they cant afford like iphone 15 pro for 1.3l on emi with earning of 25k  😂
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Budding Star Budding Star
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Even after utilising emi offer on card , i close emi and pay instantly after bill generation joy joy

Deal Lieutenant Deal Lieutenant
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TILL DATE I NEVER TOUCHED ANY EMI on credit cards:) REALLY NOT WORTH THE RISK and their EVER CHANGING T&C of cancellation fees.. not worth the hazzle
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Deal Subedar Deal Subedar
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I did it all!! Paying down payment for the first car through CC, withdrawing cash, EMI's, balance transfers, min/part payment, missed payment  and owning multiple credit cards. Literally every available CC at one point. 

BUT since last 15 years or so, maintained just one CC and pay the whole outstanding on the day statement is generated. I use CC just for points and discount offers. Pay not even a dime extra!!

Benevolent Benevolent
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The fact of the matter is, Jitna chadar ho, utna hi pair pasaro (Cut the coat according to the cloth).

Deal Subedar Deal Subedar
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Is this a ritual here that a new matured guy comes once in a while  to advice on usage of credit cards ?

Deal Baba Deal Baba
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Snap Fingers 🤌🤌🤌

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Deal Subedar Deal Subedar
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Only opted for no cost emi when there was extra discount for opting for emi 

Otherwise I earn monthly around 1000 just by rotating 30k to 40k on different credit cards

Deal Lieutenant Deal Lieutenant
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i heard u still need to pay gst on no cost emi intrest
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Deal Cadet Deal Cadet
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People spewing a lot of financial responsibility in this thread. But just wait till BBD and a lot will be splurging lakhs using all their different CCs and EMIs😄

Deal Captain Deal Captain
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When there is a risk, there is a reward.

Yes, cc is a debt trap, we are spending someone's money interest free for a short period of time.

Post Mogul Post Mogul
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Thanks for the kind information ❤️❤️

Aap nahi btate to Hume Pata hi nahi chalta

Deal Cadet Deal Cadet
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Credit card is the only industry, where the company earns from heavy interest/late fees who break the rules, in order to give some part of it in form of rewards/50 days credit to the people who follow all the rules.

Their every changing strategy is to aim mostly those customers who may break the rules but pay up all the charges+principal to maintain good credit profile.

Hotshot Hotshot
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I have 20+ cc ,mostly ltf except few amex mrcc sbi card(2) I use cred to see payment date etc never missed any payment yet. I use cc for all purchases. I keep so many cc because of 10% off offers. I Wishlist stuff and wait for offers. I do not rotate any of card balances. Using cc is a skill that not everybody posses. 

I will give a small example. I went to titan showroom near my old apartment which is 25km from my new. I liked a watch but i did not carry my neucard with me. So I was not going to buy from other cards as rewards was not so much. The agent came to my home with my car and swiped his machine and then he went home. though in my case i bought the watch as it was a once in a lifetime experience for me (titan nebula)

https://www.titan.co.in/product/nebula-grey-dia...

Plus they gave 10% discount.

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