Credit Card Protection Tips

Don't have enough cash in hand to buy the latest Coby MP4 Player that you always wanted to? No problem. Use one of the several credit cards that you own from various abanks.

Of course using a credit card to buy goods and services you desire is indeed the most convenient way of shopping for millions of Indians, more so during the festive season, there are a few things you should know before you actually do that.

Remember that a credit card is an unsecured loan advanced by a bank or financial institution after ensuring that only those who meet certain credit parameters are qualified to use the credit card.

Here are a few MUST KNOWs before you start using your credit cards.

1. Always read the terms and conditions before using the credit card because once you use the credit card it is assumed that you have accepted the same.

2. A card is usually issued for two years and the annual fee is waived off only for the first year. The second year fee is usually charged and if you do not wish to pay this fee, you should cancel the card before using it in he second year because using it indicates that you have agreed to paying the second year's subscription.

3. 'Lifetime free credit cards' is a new trend in the industry and before opting for one you should check with the bank if all annual fees are indeed being waived off.

4. Always try and pay the entire amount outstanding to the extent possible because all unpaid amounts carry a hefty interest and turns out to be very expensive if you decide to roll your credit.

5. Whenever you make a large purchase on your credit card you will be given an option to pay by EMI (equated monthly installments). It is recommended that you pay the entireamount at the extent possible and avoid the EMI route as it is prohibitively expensive.

6. Avoid borrowing cash on credit card as it turns out to be very expensive because of the interest amount charged. Different banks levy different interest rates on cash borrowed on your credit card. Please ask your credit card issuing bank or company about the interest charged on such transactions.

7. Never choose a credit card for its insurance cover but for its core offering, that is, more than 50 days of interest free credit if you use it smartly.

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How to apply for a Credit Card

• Find out information about credit card plans, rates and terms on the Internet, in personal finance magazines and in newspapers.
• Fill out the paper application for a credit card of your choice, if you do not want to apply online. Ensure that the application is endorsed by the credit card company and is an original document, not photocopied.
• Apply on phone, by calling up the toll free number of the credit card company of your choice. This number can be found online, through yellow pages, newspapers or magazines. Follow the automatic instructions that you hear when you call the number.
• Apply online, which is usually the easiest, fastest and most preferred method of credit card application. Go online and search for the different credit card options offered by different banks, financial institutions and stores.

More on Credit card application

• Compare the different features as regards the fixed or fluctuating interest rates, APR, credit limits, interest-free days, penalties, grace periods, schemes for cash advances and balance transfers, attractive offers and other implied costs.
• Choose one to suit your requirements and search for applying options online.
• Check for the preconditions of applying, such as a driving license number, social security number, date of birth and address proof. Usually, there is no need to have a bank account in a specific bank, nor do you need to maintain a minimum bank balance.
• Fill in the details, double check the information included, read the privacy statement and click on "Apply."
• Apply for multiple credit cards if you choose. However, the authority to issue of all these cards simultaneously rests with the issuer, who will first ensure whether you have a reliable financial background.

which Credit Card to apply?

SBI - Spicejet Cobranded Card

Budget air-carrier, SpiceJet and public sector lender, State Bank of India, today launched their co-branded credit card SBI SpiceJet which offers a host of benefits to the airline's customers.

The offering under the credit card includes an absolutely free SpiceJet air ticket (inclusive of all taxes and surcharge and valid across all sectors and flights), a company press release said here.

A completely free SpiceJet air ticket on enrolment to the SBI SpiceJet Card and completely free SpiceJet air ticket on spends above Rs 1 lakh in a year, are some other benefits that a card-holder can avail, the release said.

The free air ticket is also inclusive of all taxes and surcharge, it said.

Besides, a customer would also be entitled to a Rs 1,000 SpiceJet discount voucher on enrolment to the SBI SpiceJet Card, which is redeemable against a SpiceJet return air ticket, the release aid.

We are pleased to introduce these new benefits for our SBI SpiceJet customers. Bringing new products that offer greater value to our customers has been an ongoing endeavour for us at SBI Card," SBI Card CEO, Diwakar Gupta," said.

This association with SBI card is yet another innovative step towards that and the airline is sure that its customers would find this to be meaningful for them, SpiceJet CEO, Sanjay Aggarwal, said.

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Credit Card Information for Sale

While the global economic turmoil is forcing Governments to initiate measures to arrest further decline in growth rates, cyber crooks operating in the underground economy seem to be cashing in on the opportunity.

Wondering how? With shopping and banking transactions occurring online, password stealing has, for instance, become a common cyber crime. McAfee Avert Labs has seen the count of password stealing malware variants increase by nearly 400 per cent during 2007-08.

Symantec’s Report on the Underground Economy reveals that the most frequently advertised item on underground economy servers are bank account credentials (which consist of account numbers and authentication information) accounting for 18 per cent of goods and services available for sale.

The large supply of bank account credentials may be due to a shift towards online banking.

Forty four per cent of Internet users perform some degree of Internet banking in the US, it is higher at 67 per cent in Canada. It has just caught on in India. According to the report, the advertised prices for bank account credentials ranged from $10 to $1,000 (between July 2007-June 2008), with prices depending on the amount of funds available, the location and type of account.

The second most common advertised item was credit card numbers accompanied by CVV2 numbers, accounting for 16 per cent of the sale of all advertised goods and services. (Merchants at many online sites require the CVV2 number as part of their authorisation process and the number of sites requiring this authentication is increasing.)

The Report said credit cards with CVV2 numbers were typically sold in bulk, with packages ranging in size from 5 to 500. The advertised prices of these ranged between $0.50 and $12.

The third most common item advertised for sale on underground economy servers was credit cards, accounting for 13 per cent of all advertised goods during the reporting period. Symantec perceives credit cards as not being as popular as bank account credentials or credit card numbers possibly because these are difficult to exploit due to the time-sensitive nature of the stolen cards and increased security measures taken by merchants.

Credit card prices observed on the underground economy servers ranged from $0.10 to $25 per card number. Symantec estimates the value of the total advertised goods on observed underground economy servers at over $276 million during the said period.

While law enforcement agencies strive to arrest and indict those involved in frauds and identity theft, the global nature of these criminal enterprises is making it increasingly difficult to locate their operations and shut them down.

This is just the tip of the iceberg. Cyber criminals are on the prowl, looking for newer ways to make money. So, keep your identity and wallet safe by adopting security safeguards.

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Credit Card Defaulters trapped in Job Sites

If you are a credit card defaulter trying to escape the bank’s clutches by moving to another address, you may not be as lucky as you think.

Credit card companies and recovery agents could track you through your resumes posted on job sites.

Job sites have become ideal destinations to source correct addresses and latest contact numbers of credit card defaulters.

Here’s what happened with Nithin Dutta, a marketing professional in Bangalore who posted his CV on a job site on August 7.

Two days later, two roughnecked recovery agents knocked at Dutta’s door in Koramangala at around 8.50 pm and threatened his wife Mahati of dire consequences if the couple didn’t pay their credit card outstandings in a day. Dutta had a credit card outstanding of Rs 6,000 some 7 months ago.

But he did not pay up as he had lost his job. He later relocated to Dubai for a few months but returned to Bangalore as his wife found a new job in the city. He posted his biodata on a couple of job sites along with his new contact numbers and address.

“It is not that I did not want to honour the outstanding. But I was not in a position to do that. The thing is, we’d just moved to the new address and even our parents and close friends did not know where we were staying. But the credit card recovery agents could locate me there. One of the agents told me that they got my address from a job site,’’ says Dutta.

The jobs and salary cuts in the past one year has substantially increased the number of defaulters. Ramdas Venkat, who works as a recovery agent on behalf of a credit card company, says banks are frantically looking for genuine information on credit card holders who default intentionally or unintentionally.

And job sites are a useful source for information especially on younger customers who use such sites extensively.

Any employer can get the right to access CVs posted on job sites for a price. For instance, to view IT resumes from southern India for a year costs just over Rs 1 lakh. “We are in the contact content business and we will give access to employers who want to view profiles of candidates,’’ says an official at a job site.

Recovery agents use decoy e-mails too. Another defaulter Anoop Menon got a mail saying he won a three-day, twonight free trip to Malaysia for two.

He called up a number given in the mail. “In 30 minutes, two recovery agents tracked me down to my new office. I guess even telecom companies sell subscriber data,’’ says Menon.

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Credit Card Information Resources

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Offer Galore. Information on various Sales promo and Credit cards Offers.

Simply Bank. Information on credit card awareness and various Banking products.

Credit Card blog. Information on Indian and International Credit Cards.

Macfee Partner incentive. Information Credit cards, Business and stocks.

Arcalog. Information on Credit Card debt.

Apna Paisa. Information on Credit card, Insurance, Investment and banking


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