Credit Card Guide | Credit Card Default solutions

latest RBI guidelines on Credit cards

2010-08-05T11:24:00.000-07:00

The RBI on has warned banks and financial institutions to strictly follow its guidelines on credit cards regarding transparency in charging interest rates and levying other fees on customers or face penal action.
"All banks are once again advised to strictly adhere to the guidelines... both in letter and spirit," an RBI circular said, adding that the violation would invite penal action.

The RBI has issued fresh directives in view of the numerous complaints from credit card holders, especially with regard to excessive finance charges and issuance of unsolicited cards, it said.

Besides, complaints like charging annual fee on what were being offered as free cards, issuance of loans over phone, disputes over wrong billing, difficulty in accessing the credit card issuers and poor response from the call centres, it said.

Giving detailed guidelines for credit card operations, the RBI had earlier asked the banks to declare upfront the interest rate, various charges and the methodology of calculation of finance charges with illustrative examples.

As per an RBI circular issued in 2007, card companies should prescribe a ceiling rate of interest, including processing and other charges in case of small value personal loans and loans similar in nature.

There should be transparency in levying differential interest rates, it had said, adding, the banks should publicise through their website and other means, the interest rates charged to various categories of customers.

The circular also advised banks to indicate to the credit card holder upfront, the methodology of calculation of finance charges with illustrative examples, particularly in situations where only a part of the amount outstanding is paid by the customer.

RBI had also asked banks to ensure that wrong bills are not raised and issued to customers. In case, a customer protests any bill, the bank should provide explanation and, if necessary, documentary evidence to the customer within a maximum period of sixty days with a spirit to amicably redress the grievances, the circular had said.

There are host of banks, which issue credit cards, including ICICI Bank, HDFC Bank, SBI Cards, Punjab National Bank. Besides, many foreign banks like Standard Chartered, HSBC, Citibank also offer them.

There are about 1.9 crore credit card users in India.
moreRBI guidelines on Credit Card

SBI Card - now the most trusted Credit Card

2010-06-12T10:51:00.000-07:00

SBI Card has received the title of the most trusted brand in credit card segment. The title was conferred by Reader's Digest Asia Trusted Brands Survey. SBI Card has been voted as the best since the last three years.

The card mainly focuses on customer directed activities. The 250 service camps laid recently had been a part of this move. The camps helped SBI Card reach 2,10,000 customers across 31 Indian cities.

Which Low interest Credit Card to Apply?

SBI Card in the only credit card in India which facilitates its customers with 13 different modes of payment.

Last year, SBI Card won several Indian and Asian awards including the most trusted brand in credit card category in the Reader's Digest Asia Trusted Brands 2009 Survey, a consumer choice award from CNBC Awaaz and ‘Asia's Best Mature Captive Services Delivery' award from the Shared Services Outsourcing Network (SSON).

Reader's Digest Asia Trusted Brands Survey was came into existence in 1999 and has successfully been carried out so far.

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"Pay with Points" from American Express

2010-05-14T10:21:00.000-07:00

American Express, through its Membership Rewards program, has introduced ‘Pay with Points’, a feature that makes booking flights easier and faster than before for its Platinum cardmembers and the Platinum Reserve credit cardmembers. Pay with Points feature allows cardmembers to instantly redeem membership rewards points for all or part of the cost of any leading airline ticket without blackout dates or restriction when booking travel through American Express Membership Travel Services.

Which Airline Credit Card to apply?

In the past, American Express cardmembers were able to convert rewards points to frequent flyer miles with Membership Rewards partner airlines. Now in addition, with this ‘Pay with Points’ feature, the cardmembers have an option to use their membership reward points to fly on any leading airlines free of blackout dates or restrictions or memberships to Frequent Flyer programmes.

Cardmembers can call American Express Membership Travel Services to book tickets availing of a choice of airlines to fly including leading domestic and over 50 international airlines. Cardmembers can pay for tickets by combining points with part payment on their American Express Platinum Cards as well as pay fully with the points earned.

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Credit Card Information - Fetches Big Money

2010-05-12T10:57:00.000-07:00

While economies went into a tailspin in 2009, credit card information, wrongfully extracted by hackers, commanded a huge premium in the grey market — more than double the price they did a year earlier.

In some cases, data encrypted on the magnetic strip of credit cards were being sold at six times more. The username and password of sites like PayPal that accountholders can withdraw cash from, were up by $600 per account.

On the other hand, bank credentials — account numbers, net banking transaction access codes and personal account passwords — appear to have become a little cheaper over the past one year. So are e-mail passwords over the past one year.

Card Protection Program FAQs

For instance, leading web security firm Symantec says credit card information — along with the card verification value (CVV) — was $30 per card during 2009 against $12 in 2008. CVV is the three-digit number on the opposite side of the card and is a must for making online transactions.

Data encrypted on the magnetic strip of a credit card, referred to as credit card dumps, contains the primary account number and the expiration date as well as card-holder’s name. Each credit card issuer has its own standards for encoding this information. The highest price for such information was $140 per card in 2009 against $25 per card in the previous year.

User name and password of sites, including PayPal, referred to as cash-out services, were selling at 50% of the total value of the cash that could be siphoned off from a single account during 2008. During 2009, the prices increased $600 flat.

Credit Cards during foreign travel - Points one must take care

Bank account information, however, dropped from $1,000 in 2008 to $850 in 2009. Over the same period, e-mail accounts sold at $20 on the higher side during 2009 against $30 in the previous year. Credit card info and bank accounts still top advertised items in the underground economy. However, credit card dumps saw a marked increase in advertisements.

Popularly called underground economy, there are a set of hackers who deploy various malicious methods to extract sensitive data from unsuspecting PC users. Having extracted a sizeable volume, they advertise on various sites to sell them. The potential of financial gain from these data determines the price for any set of information.

There is another set of hackers who use such stolen information to extract money, The ones that steal the information may not always want to use them and, therefore, remain unidentified. Hence, they are satisfied with selling them in the underground economy. The ones that buy them are capable or intend to take more risks than the ones that steal the information... Interestingly, there are two distinct sets of people.

Prices of credit card information have gone up because credit limits offered were raised over the past one year. Prices of bank account information have declined because it is becoming increasingly difficult to use bank information to siphon off funds.

Card Protection Program India

Prices are also dependent on factors like average credit limits on cards in specific countries. For example, credit card information in the US will fetch higher prices than those in India or Bangladesh. In contrast, bank account or debit card information from countries like India will fetch more money than in the US since Indians have a propensity to save and, therefore, likely to have more funds in their bank accounts than an average US citizen.

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Credit Card default settlement - with the help of BCSBI

2010-04-22T03:35:00.000-07:00

ABOUT BCSBI

The Banking Codes and Standards Board of India is an independent and autonomous watch dog to monitor and ensure that the Banking Codes and Standards adopted by the banks are adhered to in true spirit while delivering their services.

BCSBI is a boon for Indians under financial stress and who are credit card/loan defaulters. If anybody approaches BCSBI, the board will carefully examine one’s case and then recommend a workable solution to the applicant as well as the Nodal officer of the bank. However, you should be genuine with your information.

Procedure for settling your Credit Card / Loan Default:

Þ Collect the defaulting Account details

Þ Write a brief cover letter marked to the Officer BCSBI, Mumbai on why you have defaulted; what was your original amount, how much interest has accumulated over it, explaining your case.

Þ Download and Print the BCSBI Credit Counselling Form [PDF]

Þ Fill the BCSBI Form and send all the documents to Banking Codes and Standards Board of India C-7, 4th Floor, Reserve Bank of India Building, Bandra Kurla Complex Bandra (East)Mumbai – 400 051.

BCSBI will examine the case and guide you with its advice, and it will also recommend the Bank to consider your case for settlement. You can also refer our Credit Card Default Settlement - Step by Step Guide also.

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Credit Card default settlement - A helping hand from BCSBI

2010-04-19T20:07:00.000-07:00

By opting for counselling, borrowers can amicably settle the dues they owe the banks through debt restructuring.

If you are juggling with multiple credit cards that you happily accepted from aggressive banks without giving a second thought during the good times between 2003 and 2007, and are now hard-pressed to repay the outstanding dues, then you are not alone.

About 40 per cent of the retail borrowers who have approached the Banking Codes and Standards Board of India's (BCSBI)credit counselling wing to sort out debt woes are those who have outstanding ranging from a few thousand to a few lakh rupees on multiple credit cards.

Credit Card Default Settlement - Step by Step Guide

Individuals, who fell for the marketing spiel of direct marketing agents (employed by banks to push credit cards) about the utility of credit cards, may be keen to get out of their debt trap. By opting for credit counselling, they can amicably settle the dues they owe the banks through debt restructuring.

Banks, to a large extent, are obliging by agreeing to convert the credit cardholders' outstanding dues into personal loans, which carry a lower 18-20 per cent rate of interest.

Between 2003 and 2007, when

India

's GDP growth averaged 9 per cent, banks sold credit cards to all and sundry by diluting their credit appraisal standards. However, when the growth story turned awry following the global financial meltdown in 2008, the chickens came home to roost for banks in the form of credit card defaults.

Credit Card Default and Settlement

The number of credit cards in circulation in

India

has come down by about 56 lakh to 2.11 crore as of October-end 2009 compared with 2.67 crore as of October-end 2008, according to Reserve Bank of

India

statistics.

Member-banks, currently numbering 83, will, by and large, heed the advice of the credit counselling cell of the Board, which was established in 2006 as an independent and autonomous watchdog to monitor and ensure that consumers of banking services get what they are promised by the banks.

Though BCSBI started its credit counselling wing in Mumbai almost two months ago, only about 40 borrowers in the retail segment (credit cards, personal loans, vehicle loans, and home loans) had approached it so far for availing themselves of its services, which are rendered free of charge.

Faced with funds constraint, there is only so much that the board could do in terms of creating awareness about the utility of its new service for the masses.

BCSBI's credit counselling services are also available to micro and small enterprises whose credit exposure does not exceed Rs 50 lakh.

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Get a Business Credit Card and Organize your Business

2010-04-10T09:48:00.000-07:00

If you're a small business owner, there's always something that needs to be done and you are often the only person available to do it. From delivering your product to customer service and even the paperwork behind the scenes, you're responsible for all the steps that have to be taken to get your business from point A to point B.

Imagine being able to add a couple of shortcuts to the paperwork side of things. That would give you more time to focus on the part of the business that you love, and less on mundane, behind-the-scenes items that need to be done but are certainly no fun. A business credit card may help you do just that. There are a number of credit card companies who understand that small businesses have the same kinds of needs as larger businesses, and sometimes need a little extra buying power to remain at peak operating efficiency.

Which Business Credit Card to apply?

Many small business owners never realized that a business credit card will actually help them keep their records in order. Once you've gotten a business credit card, it should be used for all of your expenses. By doing so, you'll no longer have to sort through a large pile of receipts at the end of the month. Your credit card statement will have a list of all the vendors you paid and how much they received, in one easy-to-read and organized list. You can also do away with the aggravation of trying to read blurred or 'not quite printed' receipts.

A business credit card will also allow you to keep a tighter hold on where your organization's money is going. Every time the statement arrives, you can take a close look at just where your money is being spent. With everything clearly documented you may start seeing where expenditures are higher than you'd like and find ways to cut down, thereby affecting your company's bottom line.

Additionally, the card may be able to make your regular monthly bill-paying go a bit more smoothly. Many utilities and service companies allow regular payments by credit card. So, instead of being inundated with a steady stream of bills for which you'd have to physically write a check and pay, you can set them up on an auto payment plan through your credit card. Then you'd only need to write one check a month – to the credit card company.

There are also other bonuses that your business might benefit from by having a credit card. Depending on the card you choose, you could earn air travel miles, gas rebates or even cash back for the purchases you make. If your company normally has a significant amount of expenses, it could add up quickly and reward you with a little bit back. While many people think that lines of credit are nothing more than an additional burden, using your card in the right way can actually help make your operation run more smoothly as well as offer a few perks along the way.

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Calculation of Finance Charge by HDFC Credit Cards

2010-04-10T08:57:00.000-07:00

Many of you still don't quite understand how Finance Charge is calculated on balance amount by credit card companies. We found that HDFC Credit Card is one of the better ones which can explain it very clearly.

Here is a step by step guide on how Finance Charges are calculated.

Assume you have Zero balance on your card to begin with.
You now make a Biz Bazaar household purchases worth Rs 15,000 on April-10th. Then on 18th April you buy a Mobile Phone worth Rs 5,000. Lets say your billing cycle ends on the 18th of every month. So your April-18th credit card statement lists Total Dues as Rs 20,000 and Minimum Payment of Rs 1,000.
Due Date for making entire payment or at least minimum payment is May-2nd.
Lets assume you miss the May-2nd deadline. This is very bad to your credit history. Creditors think you don't even have the money to make minimum payment. Missing Minimum Payment will attract you additional fees known as Late Payment Fees.
If you make minimum payment by May-2nd then their is no Late Fees in your next credit card bill.
Assume you have not made a minimum payment by May-2nd and on 12th May you pay Rs 2,000.
You purchase groceries worth Rs 1,000 on May-14th.
On May-15th you make a payment of Rs 15,000
Thus on your May18th Bill you will see the following,

Late Payment Fees of Rs 350
Interest on Rs 15,000 @ 2.95% pm [whatever your APR is] from 18th April to 12th May.
Interest on Rs 13,000 @ 2.95% pm from 13th May to 15th May
Interest on Rs 5,000 @ 2.95% pm from 18th April to 15th May
Interest on Rs 3,000 @ 2.95% pm from 16th May to 18th May
Interest on Rs 1,000[Fresh Purchase] @ 2.95% from 14th May to 18th May

Add Service Tax on Late Payment Fees + Interest.

Total outstanding = Rs 4,000 [Rs 3,000 from Previous Bill and Rs 1,000 Fresh Purchase] + Service Tax+ Late Fees + Interest = Rs 5,000 say.

Thus you are un-necessarily paying a hefty fees of Rs 1,000 to credit Card company on just Rs 4,000 outstanding balance.

Always pay at least minimum fees by due date. Still better, pay off the entire debt by due date to avoid any FEES!!!!

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CashBack Credit Cards -- Consumer Tips Part-I

2010-04-10T03:35:00.000-07:00

How does a little extra cash in your pocket sound? Maybe you could use it for a nice dinner out on your birthday, a movie night with that special someone, a rainy day shopping spree, college savings for you or your child, or even to pay down your mortgage. Keep dreaming because if you had a little extra cash you could use it for anything--donate it to your favorite charity, compensate for high gas prices, pay down other debt, or buy a discounted airline ticket. For all these reasons, and the thousands of others you can dream up, a cashback credit card may be the perfect fit for your wallet.

CashBack Credit Cards are great IF...

...you don't carry a balance from month to month. Credit cards offering cash back tend to have a higher interest rate, which usually wipes out any reward you might receive if you carry a balance. According to CNNMoney.com statistics, interest rates on reward credit cards are, on average, approximately 1% higher than standard no-frill platinum credit cards. So if you plan to carry a balance your best deal is to look for the credit card with the lowest interest rate. Keep your financial health in mind and don't be lured by cards offering rewards that end up costing you more money.

President of Money Magic, Inc. and money educator Mary Ann Campbell (CFP) says, "The way for cash back to be a good option is if you are truly managing your credit cards where you are literally earning cash back but not turning around and paying it back in any other form." The cash you receive from a rebate card should be viewed as a reward for all the hard work you have done in lowering your credit card debt and paying your balance in full each month.

Which Cash Back Credit Card to apply?

And if you happen to be wondering how credit card companies can pay you cash for free, here's the answer-the merchants you shop at are charged a fee for every credit card purchase. So let them pay for you to get a well deserved reward!

You don't carry a monthly balance BUT...

...not all cards are created equal either. You will need to do some shopping around and maybe even pull out your calculator or utilize our online calculators to determine the best card for your spending habits and lifestyle. Consider it an investment of your time with the payout being a little monetary freedom. Here are some things to keep in mind:

Is there an annual fee? This is a huge red flag. With all the different cash back reward cards that do not charge an annual fee, you should not have to settle for one that does. If a card with an annual fee seems too good to resist, then it is time to do some calcuations in order to compare the rebate to other cards without an annual fee.

Which Credit Card to apply?

Does the card require you to carry a balance or offer enhanced rebates if you carry a balance? This is another red flag because any interest you pay will most likely be more than the amount of cash you get back. Determine how much you will charge for the year, how much it will cost you in interest, how much you will pay in fees, and how much you will receive in cash. If you do end up still receiving more cash than you pay in interest and fees, then you need to compare it to other cards to see which will give you the greatest rebate. But remember, reward cards tend to have higher interest rates and carrying a balance on any credit card is generally not advisable.

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LIC Credit Card and Credit Card Protection program

2010-04-02T10:20:00.000-07:00

LIC credit card holders can now report loss of any of their cards from anywhere in the world to a 24-hour helpline launched by LIC Cards Services.

LIC Cards Services Ltd has launched Card Protection Plan for its credit card customers in partnership with CPP Assistance Services which will safeguards all of the LIC cardholder's payment cards - credit, debit and ATM cards.

The members can also be able to register their non-financial cards such as store cards, loyalty and membership cards.

Credit Card Security

Besides these, customers will be able to retrieve important details on lost/stolen documents like passport, PAN and driving license also

To avail the new service, customers would need to purchase a membership plan offered by LIC and register their cards with CPP.

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Deutsche Bank Airline/World miles credit card

2010-03-30T11:28:00.000-07:00

Deutsche Bank is set to launch a credit card that will allow the users to redeem points — or flight miles — accumulated by booking flight tickets using the card — named WorldMiles credit card — against airline tickets. The WorldMiles credit card is offered in two variants, Platinum and Signature.

To use the service, card holders need to log on to their accounts — created automatically once the card is issued — on myworldmiles.com and buy tickets from any airline (international, domestic, full service as well as low cost) through the portal.

In addition to ‘FlightMiles’ accumulated on tickets purchased on the portal, the user also earns ‘SpendMiles’ for booking the tickets through the card. These SpendMiles, too, can be redeemed against flight tickets. Spends made on the card for purposes other than air travel also yield ‘SpendMiles’. On the Signature variant, every Rs 100 spent will fetch you three SpendMiles — two in the case of Platinum. These miles can be collected in addition to the points you would earn as per the airlines’ frequent flyer programmes.

While such schemes offered by airlines restrict the redemption to their tickets bought from the carrier, this one is airline-agnostic — you can redeem the miles accumulated against tickets of any airline. It also allows you to accumulate miles when you fly low-cost airlines which, barring a few, do not run frequent flyer schemes. You can accumulate the miles if you use the card to book tickets for your family members, friends or associates as well.

Which Airline Credit Card to apply?

There are certain limitations, though. Since the miles earned can be redeemed only against flight tickets, those looking for a diverse rewards programme may not find this offering appealing. The points earned on an airline’s frequent flyer programme cannot be clubbed with the miles earned via this credit card. That is, assuming a traveller has accumulated 500 points on the airline’s frequent flyer programme and another 500 miles on the WorldMiles credit card — and assuming, hypothetically, that 1000 miles entitle a card holder to one free ticket — the two cannot be clubbed together to buy one ticket. The miles accumulated from the card and the airline’s scheme will have to be redeemed separately.

While the joining fee for the Platinum variant is Rs 5,000, one will have to shell out Rs 7,500 for the Signature card. In addition, the annual maintenance fees amount to Rs 1,500 and Rs 2,500, respectively.

The card and the programme are operational on a pilot basis, and the bank is planning a full-fledged launch shortly.

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Which Business Credit Card to apply?

2010-03-28T10:45:00.000-07:00

Demand for business credit cards has increased substantially among the Indian consumers. Business credit cards are preferred for their convenient terms and conditions and host of financial benefits.

A number of credit card providers offer business credit cardsfor the Indian customers. Features of business credit cards are designed to take care of the financial requirements of all types of customers. In India, business credit cards come with wide range of basic and additional benefits. Lucrative reward schemes that are offered with business credit cards make them highly popular among the credit card users in India.

Business Credit Card Issuers in India

There is no dearth of business credit card providers in India. Reward schemes and benefits offered by business credit cardsare different for different credit card providers. Some of the leading business card issuers in India are as follows:

Þ HSBC

Þ ICICI

Þ State Bank of India

Þ American Express

Þ Citibank

Leading Business Credit Cards in India
Following are the leading business credit cards available in

India

Þ Deutsche Bank Corporate Credit Card

Þ Standard Chartered Executive Credit Card

Þ HDFC Bank Corporate Credit Card

Þ BOBCARD Corporate Global Credit Card

Þ HDFC Bank Gold Business Credit Card

Þ Cancard Visa Corporate Credit Card

Þ Jet Airways CitiBusiness Credit Card

Þ Axis Bank Corporate Credit Card

Deutsche Bank Corporate Credit Card
Following are the main features of Deutsche Bank Corporate Credit Card:

Þ It is a corporate branded credit card.

Þ Cash advance fee is 2.5% per month. Minimum cash advance fee is INR 250.

Þ Cardholders can monitor and manage expenditures of their personal business enterprises on Internet. This facility is known as MIS.

Þ Issuer is MasterCard.

Þ Cardholders receive insurance benefits.

Þ Issuing bank is Deutsche Bank.

Þ Joining and renewal are free.

Þ There are 0% fuel surcharge facilities available at all outlets.

Þ Regular interest rate is 2.95% per month.

Þ There are special rewards.

HDFC Bank Corporate Credit Card
Following are main features of HDFC Bank Corporate Credit Card:

Þ There are MIS reporting facilities.

Þ Regular interest rate is 2.65% per month.

Þ Cardholders receive discounts all over the world.

Þ Cash advance fee is 2.5% per month. Minimum cash advance fee is INR 300.

Þ There are 0% fuel surcharge facilities.

Þ Issuer is MasterCard.

Þ Interest rate is low.

Þ Issuing bank is HDFC Bank.

Þ There are accident insurance cover facilities.

Þ There are special corporate rewards.

Þ There are no joining and renewal fees.

How to apply for a Credit Card

Which Airline Credit Card to apply?

2010-03-27T10:36:00.000-07:00

There are 25 major airline credit cards available in India. These cards provide a number of travel related benefits to cardholders.

Diners Club British Airways Credit Card
Following are some interesting facts about Diners Club British Airways Credit Card:

Þ First year is free.

Þ Renewal fee is INR 3000.

Þ Cardholders can earn 2.5 BA miles. This offer is applicable for every INR 100 spent by cardholders with the card.

Þ Regular interest rate is 2.75% per month.

Þ Cardholders get access to international standard business centers and lounges.

Þ Cash advance fee is 3% per month. Minimum cash advance fee is INR 100.

Þ Cardholders receive priority booking facilities in busy flights. They receive meal and seat preferences as well.

Þ Issuer is Diners Club.

Þ There are no joining fees.

Þ Co-brand of this card is British Airways.

American Express Kingfisher First Credit Card
Following are some points on American Express Kingfisher First Credit Card:

Þ Cardholders receive air accident insurance with the maximum coverage of INR 1 crore.

Þ Renewal fee is INR 10,000.

Þ Cardholders receive a maximum of two round trip tickets for free in Kingfisher Airlines. These services are provided on the basis of

Þ expenditure made with the card.

Þ Issuer and issuing bank is AMEX.

Þ Cardholders receive special discounts provided by Airtel.

Þ There are 0% fuel surcharge facilities available at HPCL outlets.

Þ Joining fee is INR 50,000.

American Express Indian Airlines Credit Card
Following are some interesting facts about American Express Indian Airlines Credit Card:

Þ Cardholders get 15% discounts in economy class flights and 10% rebates in business class flights.

Þ Joining and renewal fees are INR 3750 each.

Þ There are 5% discounts on super saver fares.

Þ Regular interest rate and cash advance fees are 1.9% each.

Þ There are business class upgrades for free.

Þ AMEX is issuing bank and issuer.

Þ There are complimentary tickets.

Þ There are 0% fuel surcharge facilities at HPCL outlets.

Following are some other airline credit cards available in

India

Þ ABN AMRO Smart Gold Credit Card

Þ Jet Airways Citibank Platinum Credit Card

Þ ICICI Bank Gold American Express Â Credit Card

Þ Jet Airways Citibank Silver Credit Card

Þ Deutsche Bank Classic Credit Card

Þ American Express Indian Airlines Gold Charge Card

Þ Deutsche Bank Smart Gold Credit Card

Þ American Express Indian Airlines Green Charge Card

Þ Deutsche Bank Platinum Credit Card

Þ GoAir SBI Credit Card

Þ Deutsche Bank Miles & More Platinum Credit Card

Þ Standard Chartered Emirates Platinum Credit Card

Þ Deutsche Bank Miles & More Signature Credit Card

Þ Standard Chartered Emirates Titanium Credit Card

Þ HDFC Bank Platinum Plus Credit Card

Þ HSBC Platinum Credit Card

Þ HDFC Bank Platinum Plus Credit Card

Þ Yatra Barclaycard Platinum Credit Card

Þ HDFC Bank Visa Signature Credit Card

Þ ABN AMRO MakeMyTrip Go Credit Card

Þ Jet Airways Citibank Gold Credit Card

Þ ICICI Bank Platinum Identity Credit Card

Þ Deutsche Bank Airline/World miles credit card

How to apply for a Credit Card

Which Cash Back Credit Card to apply?

2010-03-26T10:37:00.000-07:00

There are 20 different cash back credit cards available in India and these cards offer a host of lucrative financial rewards to the cardholders.

HSBC Gold Credit Card
Following are some salient features of HSBC Gold Credit Card:

Þ There are 0% fuel surcharge facilities available at all outlets.

Þ Renewal fees is INR 2,000.

Þ There is balance transfer option.

Þ Regular interest rate is 3.1% per month.

Þ There is a maximum of 10% cash back offered on travel bookings.

Þ Cash advance fee is 2.5%. Minimum cash advance fee is Rs. 250.

Þ Credit limit is high.

Þ Issuer is VISA.

Þ There are no joining fees.

Þ Issuing bank is HSBC.

Citibank Cash Back Credit Card
Following are some facts about Citibank Cash Back Credit Card:

Þ There is a maximum of 30% cash back. This offer is available at some selected outlets in India.

Þ Cash advance fee is 2.5% per month. Minimum cash advance fee is INR 250.

Þ Cardholders always receive cash back benefits upon swiping the card at a particular outlet.

Þ Card issuer is VISA.

Þ There is a fuel transaction waiver. The rate is 2.5% and offer is valid only in petrol pumps of Indian Oil.

Þ Issuing bank is Citibank.

Þ There are no joining and renewal fees.

Þ There is 0% fuel surcharge facility that is available only at Indian Oil outlets.

Þ Regular interest rate is 3.19% or 38.28% per annum.

ABN AMRO Titanium One Credit Card
Following are main features of ABN AMRO Titanium One Credit Card:

Þ There is a maximum of 2% cash back that is available on regular purchases.

Þ Renewal fee is INR 2,000.

Þ There is a maximum of 5% cash back that is available on payments of utility bills.

Þ Regular interest rate is 3.5% per month.

Þ There is 0% fuel surcharge facility that is available at all outlets.

Þ Cash advance fee is 2.5%. Minimum cash advance fee is INR 300.

Þ There is balance transfer option.

Þ Issuer is MasterCard.

Þ Credit limit is high.

Þ Issuing bank is ABN Amro.

Þ Joining fee is INR 500.

Following are some other cash back credit cards that are available in

India

Þ Deutsche Bank Landmark Platinum Credit Card

Þ SBI Gold and More Credit Card

Þ ABN AMRO One Credit Card

Þ SBI (State Bank Of India) Silver and More Credit Card

Þ HDFC Bank Gold Credit Card

Þ LG SBI Credit Card

Þ HDFC Womans Gold Credit Card

Þ Axis Bank Visa Platinum Credit Card

Þ HDFC Bank Platinum Plus Credit Card

Þ Taj Epicure Diners Club Credit Card

Þ HDFC Bank Platinum Plus Credit Card

Þ Kotak Mahindra Trump Gold Credit Card

Þ HDFC Bank Value Plus Credit Card

Þ ICICI Bank Ascent American Express Credit Card

Þ Standard Chartered Super Value Titanium Credit Card

Þ ICICI Bank Platinum Identity Credit Card

Þ Bajaj Allianz Super Value Titanium Credit Card

How to apply for a Credit Card

Which Reward Credit Card to Apply?

2010-03-25T09:06:00.000-07:00

There are five different types of rewards credit cards available in India – points, hotels/ travels, retail, auto and fuel.

American Express Platinum Credit Card
Following are some points on American Express Platinum Credit Card:

Þ Cardholders receive complimentary membership facilities at Taj loyalty and Kingfisher Airlines A gold tier programs.

Þ Renewal fee is INR 10,000.

Þ Cardholders can earn 1 reward point for every INR 40 spent by them with the card.

Þ Card issuer is AMEX.

Þ Points can be converted to miles to avail faster flight services.

Þ 0% fuel surcharge facilities are available at all HPCL outlets.

Þ Joining fee is INR 50,000.

Þ There are special features like platinum rewards.

American Express Gold Charge Card
Following are some facts about American Express Gold Charge Card:

Þ There are not any preset spending limits.

Þ Regular interest rate is 5% on amount that has not been paid.

Þ There is a powerful reward program.

Þ Cash advance fee is 3.5% per month.

Þ There are travel services.

Þ Issuing bank is AMEX.

Þ Joining fee is INR 1500.

Þ 0% fuel surcharge facilities are available at all HPCL outlets.

Þ Renewal fee is INR 3100.

Þ There are special features like rewards programs.

ABN AMRO Smart Gold Credit Card
Following are some points on ABN AMRO Smart Gold Credit Card:

Þ Points may be converted into airline miles.

Þ Renewal fee is INR 2000.

Þ There are 0% fuel surcharge facilities at every outlet.

Þ Regular interest rate is 3.5% per month.

Þ Points may be redeemed for free fuel.

Þ Cash advance fee is 2.5% per month. Minimum cash advance fee is INR 300.

Þ Credit limits are high.

Þ Issuer is MasterCard.

Þ Cardholders receive credit shield and air accident insurance for free.

Þ Bank is ABN Amro.

Þ Joining fee is INR 500.

Following are the other major rewards credit cards available in India:

Þ ABN AMRO Adlabs Credit Card

Þ Deutsche Bank Corporate Credit Card

Þ Deutsche Bank Platinum Credit Card

Þ Standard Chartered Emirates Platinum Credit Card

Þ Deutsche Bank Miles & More Platinum Credit Card

Þ Standard Chartered Emirates Titanium Credit Card

Þ Deutsche Bank Miles & More Signature Credit Card

Þ Axis Bank Visa Platinum Credit Card

Þ Deutsche Bank Landmark Gold Credit Card

Þ Yatra Barclaycard Platinum Credit Card

Þ ABN AMRO Freedom Credit Card

Þ Kotak Mahindra League Platinum Credit Card

Þ ABN AMRO Wellness Credit Card

Þ Kotak Mahindra Royal Signature Credit Card

Þ ABN AMRO Barista Credit Card

Þ Kotak Mahindra Trump Gold Credit Card

Þ HDFC Bank Silver Credit Card

Þ Kotak Mahindra Fortune Gold Credit Card

Þ HDFC Bank Visa Signature Credit Card

Þ American Express Gold Credit Card

Þ HDFC Bank Corporate Credit Card

Þ ABN AMRO MakeMyTrip Go Credit Card

Þ HDFC Bank Gold Business Credit Card

Þ ABN AMRO Platinum Credit Card

Þ American Express India Today Group Credit Card

Þ Delhi Metro Citibank Credit Card

Þ Deutsche Bank Classic Credit Card

Þ ICICI Bank Ascent American Express Credit Card

Þ Deutsche Bank Smart Gold Credit Card

Þ ICICI Bank Platinum Identity Credit Card

How to apply for a Credit Card

Which Low interest Credit Card to Apply?

2010-03-23T05:32:00.000-07:00

A number of banks are offering low interest credit cards in India in order to help the cardholders manage their finances in a better way. Some of the low interest rate Credit cards available to Indian customers are

ICICI Bank Platinum Credit Card
Following are some salient features of ICICI Bank Platinum Credit Card:

Þ Cardholders receive priority access facilities to airport lounges.

Þ Regular interest rate is 1.99% per month.

Þ Cardholders receive air accident insurance coverageworth INR 1 crore.

Þ Cash advance fee is 3.15% per month.

Þ Cardholders have higher cash limits and credit limits.

Þ Card issuer is VISA.

Þ The card is offered via invitation only.

Þ Issuing bank is ICICI Bank.

Þ Joining fee is INR 25,000.

Þ There are 0% fuel surcharge facilities.

Þ Renewal fee is INR 2,500.

American Express Indian Airlines Credit Card
American Express Indian Airlines Credit Card has the following salient features:

Þ The cardholders receive 10% discounts on business class flights and 15% discounts on economy flights.

Þ Renewal fee is INR 3750.

Þ There is a 5% discount on super saver fares.

Þ Regular interest rate is 1.9%.

Þ Cardholders receive business class upgrades for free.

Þ Cash advance fee is 1.9%.

Þ Cardholders receive complimentary tickets.

Þ Credit card issuer is AMEX.

Þ Joining fee is INR 3750.

Þ There are 0% fuel surcharge facilities that can only be availed at HPCL outlets.

HDFC Bank Titanium Credit Card
Following are the salient features of HDFC Bank Titanium Credit Card:

Þ Cardholders receive exclusive concierge services.

Þ Regular interest rate is 2.65% per month.

Þ Cardholders receive rebates at hotels and clubs.

Þ Cash advance fee is 2.5% per month. The minimum cash advance fee is INR 300.

Þ There are accelerated rewards programs that are provided on the basis of expenditure with the card.

Þ Issuer is MasterCard.

Þ Cardholders receive 0% fuel surcharge and balance transfer facilities.

Þ Issuing bank is HDFC Bank.

Þ Joining fees and renewal fees are variable.

Following are some other low interest credit cards that are available in India:

Þ HDFC Bank Visa Signature Credit Card

Þ BOBCARD Exclusive Woman credit card

Þ HDFC Bank Platinum Plus Credit Card

Þ BOBACRD Exclusive Youth Credit Card

Þ HDFC Bank Corporate Credit Card

Þ BOBACARD Silver Credit Card

Þ Hero Honda SBI Credit Card

Þ BOBACARD Exclusive Credit Card

Þ BOBCARD Corporate Global Credit Card

Þ Axis Bank Secured Credit Card

Þ NEXTGEN BOBCARD Gold Credit Card

Þ HSBC Platinum Credit Card

Þ BOBACRD Gold Visa Credit Card

Þ Yatra Barclaycard Platinum Credit Card

Þ BOBACRD Gold MasterCard Credit Card

Þ ABN AMRO Platinum Credit Card

How to apply for a Credit Card

Which Gold Credit Card to Apply?

2010-03-22T05:15:00.000-07:00

There are forty gold credit cards available in

India

. Here they are:

Þ American Express Gold Credit Card

Þ SBI UBI (United Bank of India) Gold Credit Card

Þ American Express Gold Charge Card

Þ NEXTGEN BOBCARD Gold Credit Card

Þ ICICI Bank Travel Smart Credit Card

Þ BOBACRD Gold Visa Credit Card

Þ Axis Bank Gold Plus Credit Card

Þ BOBACRD Gold MasterCard Credit Card

Þ Axis Bank Gold Credit Card

Þ Cancard Visa International Gold Credit Card

Þ HDFC Bank Gold Credit Card

Þ ICICI Bank Orchid An Ecotel Credit Card

Þ HDFC Womans Gold Credit Card

Þ Axis Bank Secured Credit Card

Þ HDFC Bank Gold Business Credit Card

Þ Deutsche Bank Smart Gold Credit Card

Þ American Express HPCL Credit Card

Þ HSBC Gold Credit Card

Þ Deutsche Bank Landmark Gold Credit Card

Þ ICICI Bank Solid Gold (Visa) Credit Card

Þ Barclays Bank Gold Credit Card

Þ ICICI Bank Solid Gold (MasterCard) Credit Card

Þ Citibank Cash Back Credit Card

Þ ICICI Bank Gold American Express Â Credit Card

Þ Jet Airways Citibank Gold Credit Card

Þ ICICI Bank HPCL Gold Credit Card

Þ Jet Airways CitiBusiness Credit Card

Þ ICICI Bank Big Bazaar Gold Credit Card

Þ IndianOil Citibank Gold Credit Card

Þ ICICI Bank Airtel Gold Credit Card

Þ Citibank Gold Credit Card

Þ ICICI Bank Toyota Credit Card

Þ Reliance Gold Credit Card

Þ Times Card from Barclaycard and TimesofMoney

Þ Standard Chartered Gold Credit Card

Þ Kotak Mahindra Trump Gold Credit Card

Þ Standard Chartered Rotary Credit Card

Þ Kotak Mahindra Fortune Gold Credit Card

Þ SBI Gold and More Credit Card

Þ ABN AMRO Smart Gold Credit Card

How to apply for a Credit Card

Which Premium Credit Card to Apply?

2010-03-21T05:11:00.000-07:00

There are 33 various premium credit cards available in India.

Þ American Express Platinum Credit Card

Þ Bajaj Allianz Super Value Titanium Credit Card

Þ ICICI Bank Platinum Credit Card

Þ Standard Chartered Emirates Platinum Credit Card

Þ ICICI Signature Credit Card

Þ Standard Chartered Emirates Titanium Credit Card

Þ ICICI Bank Titanium Credit Card

Þ Axis Bank Visa Platinum Credit Card

Þ ABN AMRO Titanium One Credit Card

Þ Yatra Barclaycard Platinum Credit Card

Þ Citibank Platinum Credit Card

Þ Deutsche Bank Platinum Credit Card

Þ ICICI Bank Platinum Premiere Credit Card

Þ Deutsche Bank Miles & More Platinum Credit Card

Þ Deutsche Bank Landmark Platinum Credit Card

Þ Deutsche Bank Miles & More Signature Credit Card

Þ HDFC Bank Visa Signature Credit Card

Þ HSBC Platinum Credit Card

Þ HDFC Bank Platinum Plus Credit Card

Þ SBI (State Bank of India) Platinum Credit Card

Þ HDFC Bank Platinum Plus Credit Card

Þ Kotak Mahindra League Platinum Credit Card

Þ HDFC Bank Titanium Credit Card

Þ Kotak Mahindra Royal Signature Credit Card

Þ Jet Airways Citibank Platinum Credit Card

Þ ABN AMRO MakeMyTrip Go Credit Card

Þ American Express Kingfisher First Credit Card

Þ ABN AMRO Platinum Credit Card

Þ ICICI Bank Thomas Cook Titanium Credit Card

Þ ICICI Bank Ascent American Express Credit Card

Þ Standard Chartered Platinum Credit Card

Þ ICICI Bank Platinum Identity Credit Card

Þ Standard Chartered Super Value Titanium Credit Card

How to apply for a Credit Card

Which Credit Card to apply?

2010-03-21T03:22:00.000-07:00

In Indian credit card market there are 12 major types of credit cards being provided by banks and financial institutions. These cards provide a wide variety of financial benefits to holders.

Major India Credit Card Types

Following are various types of credit cards available in India:

Þ Premium Credit Cards

Þ Cash Back Credit Cards

Þ Gold Credit Cards

Þ Airline Credit Cards

Þ Silver Credit Cards

Þ Business Credit Cards

Þ Balance Transfer Credit Cards

Þ Co-branded Credit Cards

Þ Low Interest Credit Cards

Þ Lifetime Free Credit Cards

Þ Rewards Credit cards

There are some additional credit cards that are available in

India

as well. Rewards credit cards available in India can be subdivided into six categories – Points, Hotels and Travels, Retail, Auto and Petro cards.

How to apply for a Credit Card

ABN Amro Credit card cuts credit limit

2010-03-15T19:12:00.000-07:00

ABN Amro India has chopped the credit limit of some credit card customers to a tenth and raised the minimum amount payable to 7% of total dues from 5%, possibly to persuade them to surrender their cards as it draws closer to selling its retail operations to UK’s Hong Kong and Shanghai Banking Corp, or HSBC.

ABN Amro, owned by UK’s troubled Royal Bank of Scotland, or RBS, has also decided to freeze fresh retail lending, including credit card and personal loans, to arrest a pile-up of bad loans.

Credit card Application and default clause - must read article

ABN Amro continues to do business in India under its original moniker even after RBS took over its Asian operations in 2007. HSBC is said to have signed a deal to buy RBS’ retail businesses in India, China and Malaysia and is awaiting regulatory approvals in the three countries.

ABN Amro has been up against a large number of employee exits to competitors after the deal with HSBC came to light. It has also laid of some of its employees in the credit card and personal loan departments.

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Dining Movie & play spends card from Kotak credit cards

2010-02-21T09:24:00.000-08:00

Kotak Mahindra Bank has launched a credit card which offers 10% cash back on dining and movie and play spends. This cashback facility is offered throughout the year, the bank said in a statement.

How to lodge Credit Card Complaint

This credit card called Kotak Trump Card extends this cash back facility in all restaurants , fast food joints, pubs, bars and movie theatres, the bank added. The card doesn’t charge any interest to the customer for the first three months. Similarly, any purchase above Rs 5,000 can be converted into EMIs

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Travel Credit Cards

2010-02-21T08:58:00.000-08:00

A travel card is like having cash with you everywhere and that cash is acceptable almost every part of world. And you don't need to convert the cash after going to conventional money exchange centers. And travel credit cards are offered for this purpose to the travelers and tourists. They are easy to use and the tourist and traveler can also earn different types of points and rewards on these cards on every purchase. And afterwards he can use these travel rewards in his tour or he can take back these rewards in the shape of cash.

Credit Cards during foreign travel - Points one must take care

Hence a travel credit card also serves as travel reward card and a tourist or traveler can use this travel reward which he gets from different ways in his shopping and in air mile discounts. The best travel credit card which has travel credit is either travel mastercard or travel visa cards because of the fact that American Express Travel credit card is not acceptable everywhere in the world.

Most ATM machines have the MasterCard and Visa Card logos so it is easy for the traveler to use these cards and get rewards if he's using travel reward credit card. He can simply use these rewards later on in his journey to get points or to get discount.

Card Protection Program FAQs

There is another type of travel credit cards which are available for business personnel and executives of different companies to use them in their travel. And these cards have special features for such prestigious people around the world. These cards are well known by their name Travel Business Cards. And traveling while someone has these travel credit cards in his pocket is the best credit card travel or at least if not best than it is one of the best ways to use these cards.

Though express card which is backed by American Express Card system is not acceptable all over the world but it is acceptable in major parts of the world and in almost all free countries so it is not a bad choice even to use this card. But its acceptability is not as wide as Visa or Master Cards.

Beware of VISA cards

Many travel credit card providers also offer credit card travel insurance to their credit card holder however this insurance doesn't apply to their cardholder when he has reached his destination but some credit card providers also give this facility and a travel credit card holder can find these types of card providers for a safer journey.

In this way travel credit cards work and there is another plus points in these travel credit cards and that is their acceptability in some major and famous money exchangers. This can help the traveler if he needs to have cash in liquid form. Then it is another opportunity for him to use his travel credit card because they are acceptable to currency exchangers so a traveler does not need to look around for the ATM machine in this case.

back to Credit Card Basics

Combo Card from Corporation Bank

2010-02-10T21:09:00.000-08:00

State-run Corporation Bank is considering launching a multi-utility cash card, which can be used as a debit, credit and pre-paid card, in

the current year.

Petro Cards- A review

If the initiative fructifies, then Corporation Bank would be the first Indian bank to come out with a one-stop technical solution through a combo card -- a fusion of credit, debit and pre-paid cards.

Though the combo card concept is widely accepted in developed countries, India is yet to witness its benefits by which a person can use a single card as a debit, credit, and pre-paid card.

But there were certain challenges the bank needed to address in terms of infrastructure.

The bank has the infrastructure but the problem is there is no infrastructure at the user-end and they have to create that first. Corporation banks can make the facility available at there ATMs but then there were the ATMs of other banks and Point of Sales. So, this may take some time.

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Loans for Credit Card defaulters

2010-02-08T18:29:00.000-08:00

If you have a large outstanding on your credit cards and are paying the usual high interest on the same, here is an opportunity to convert it from credit card loan to a lower interest bank loan on a long tenure.

Credit Card Default Settlement - Step by Step Guide

Many banks are offering lucrative schemes to card holders in order to pare down their credit card exposure following a sharp increase in bad assets linked to them. Almost all major banks, including ICICI Bank and Citibank, are offering similar schemes but don’t want to publicise them, which could increase the risk of more card users defaulting on regular obligations and opting for these easier settlement options.

So, if you have an outstanding loan of around Rs.2 lakh and are paying an interest as high as 18%, you can convert this into a regular loan, spread over a period of three years, where your interest rate may be as low as 12%. There is a retention-oriented, assistance-based collections process, and if there is a genuine inability to pay, the bank will work closely with customers to offer repayment solutions based on his or her cash-flows.

Citibank has around 2.5 million card holders. A spokesperson for CIBIL said that when a bank reports a restructured loan it gets captured as such in the CIBIL records and is reflected similarly in the credit report.

Banks have refused to reveal their bad loan, but it is evident that they are very cautious about the business now.

The credit card base had dropped 21% to 21.1 million by the end of October 2009 from 26.7 million a year ago. Credit card outstanding has also declined by 12.13% to Rs 5,660 crore at the end of October 2009, from 6,442 crore a year ago.

According to a research report from Venture Infotek, all banks are pruning their credit card business. ICICI Bank alone has brought down the number of card holders from 9 million in 2008 to 7 million in 2009.

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SBI Card and eBay Cash back offer

2010-02-02T09:22:00.000-08:00

SBI Card and eBay

India

have come together with cash back offer for all the existing SBI Credit Card holders. So you will need to use your SBI Card to make the purchase at eBay. There are actually three categories of cash back which can try using this offer. That is 7.5%, 10% and 15%. It depends on the spend you make at eBay using your SBI Card. The maximum discount you can get with this offer is Rs. 1000.

If your purchase value is between up to Rs. 2499 then you cash back amount will be 7.5%. Similarly if your purchase value is between Rs. 2500 and Rs. 4999 your cash back would be 10% and likewise if your purchase is above Rs. 5000 you will get 15% cash back into your SBI Card within 21 days of your purchase. As said above the maximum cash back you can get is Rs. 1000.

Co-branded credit cards - Pros and cons

To avail this offer, you will need to visit eBay.in and register for free and if you already have an account with eBay.in then login to your account. Search and find the product that you want to buy. After adding the same to your shopping card, then use the coupon code SBICARD123 at the appropriate place to be eligible for the cash back into your SBI Card. Then pay using your SBI Card. And that’s all. You will get your cash back according to the purchase value, into your SBI Card account within 21 days of your purchase.

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How many Credit cards are better ?

2010-01-24T05:34:00.000-08:00

Until a few years ago, multiple credit cards were considered a status symbol, which is why perhaps many find it difficult to refuse a 'lifetime' free or platinum card offered to them either by their bank, airline, retailer or employer. Added to this are debit cards which many banks have started issuing to all their account-holders. Today, these multiple debit and credit cards compete in our wallets to get swiped at the merchandise. As a result, usage of multiple cards lead to tracking errors, missing payment dates or ignoring a wrongful entry at the bank’s end.

shuffle your cards

How many credit cards?

Don’t opt for more than two credit cards. Most banks offer good credit limits which reduce the scope for having additional cards. If you have a low credit limit, it could be either an issue with your credit score, or some banks follow a staggered approach in enhancing credit limit with new customers.

“With a spate of credit card offers such as cash backs, i-mint points, etc, a customer gets convinced about signing up for an additional credit card. These offers are complicated, worded differently and are offered by most cards today. Hence, a customer should just stick to a Visa and Master Card, which are widely accepted throughout the world,” says Suresh Sadagopan, a certified financial planner with Ladder 7 financial Advisories.

Managing payments

Keep a primary credit card so that you route all your expenses through that card. First, get a stock of what kind of credit cards you own. When it comes to co-branded cards such as a petro card, airline card or a shopping card such as ICICI Bank-Big Bazaar credit card, it’s obvious these cards would be given a preference for specific use because of higher reward points, which would offer better mileage than a plain vanilla credit card. In such cases, you could route all expenses through this particular card and keep the regular card as a back-up. “It would be easier to track your expenses as the second card would not generate any bill on a regular basis,” Mr Sadagopan adds. However, it’s best to use a debit card for your routine expenses as you would be constrained by the amount in your savings account.

Planning billing cycle?

If the bill on the first credit card is due on January 30, then keep the second bill due date as February 15. The logic behind having a staggered billing cycle is you would get enough time to repay dues. For example, on the first credit card, the last day of the billing cycle would be January 10 and the second one would be January 25. So if you have an emergency big-ticket expense after January 10 and before January 25, then you could swipe you first card as you would get longer time to settle your bill. When the bank offers a credit card, they set a billing cycle in accordance with the issue of the card. But you have a choice to change the billing cycle to suit your convenience.

Avoiding debt trap?

If you are spending 30% of your take-home salary to pay off some debt (excluding home loans) then there is a problem. “The logic is you will be spending 30-40% of your take-home for lifestyle and other living expenses. If you spend another 30% on consumption loans, then that leaves little money for your goal management,” says Kartik Jhaveri, chartered wealth manager and director of Transcend India.

Similarly, if you are unable to pay the outstanding amount on credit card statement, it’s a definite sign of trouble calling. The monthly interest rate charged on a credit card is between 3% and 4%. If you are unable to settle the balance even in the second month, the jump in the outstanding balance is very steep. Hence, in the first month itself, it makes sense to liquidate some low-yielding instrument to pay off this debt. The logic being that a FD may offer just 7-8% over a year, which is much lesser than 40-50% rate charged on a credit card on an annual basis.

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The Aditya Birla Group-SBI co-branded credit cards

2009-12-25T06:45:00.000-08:00

The Aditya Birla Group and SBI Card has announced a partnership to offer co-branded credit cards to all customers of the Aditya Birla Group companies.

The Aditya Birla Group-SBI co-branded credit cards will be available to over 28-million customers of Aditya Birla Group companies--Aditya Birla Retail, Aditya Birla Financial Services Group (which includes Birla Sun Life Insurance and Birla Sun Life Mutual Funds), IDEA and Madura Garments.

When Cards become Foes

The initiative will be led by the financial services arm of the Aditya Birla Group -- Aditya Birla Financial Services, the release said.

The Aditya Birla Group already has a strong presence in the financial services business, as a significant player in the non-bank space. The card will be made available across more than 2000 retail outlets of Aditya Birla Group companies.

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Check on high Credit Card Interest

2009-12-15T02:40:00.000-08:00

High interest rate charged by credit card companies have caught the attention of law makers and they have set up a key Parliamentary Standing Committee.

The committee has suggested that all credit card charges levied by credit card companies should not be left at the discretion of banks, urging RBI to regulate the credit card market closely.

"The RBI should review this matter and re-formulate their guidelines or norms governing credit card services with a view to providing the much-needed relief to the general public," the committee said in its report.

Most credit card companies charge interest rates around 3 percent per month for a credit card which on annualizing comes out to be more than 40 percent.

In its report the committee notes: "Banks have been given complete freedom to charge any rate of interest regardless of their benchmark prime lending rates, thereby enabling them to charge exorbitant/usurious interest."

Do's and Dont's with your Credit Card

Credit card companies defend their stand of charging high interest rates by saying that credit is totally unsecured and therefore pose a greater risk to the credit card companies.

The recommendations of the committee are not mandatory but the government has to present an action taken report to justify its action in case it does not accept the recommendation.

Defaults in the credit card segment are over 15 percent for most lenders, highlighting the risk associated with the business. Risks are higher because companies depend on internal due diligence before giving out cards.

back to Credit Card Finance Charges

Credit Card Default Settlement - Step by Step Guide

2009-12-12T08:52:00.000-08:00

Here is how you have to deal with it. When you have queries on credit card defaults and delayed payments which has taken the payment obligation of the banker to few Lakh rupees.

Talk to the bank who issued the card and tell them you would like to settle off in good faith and ask for concession and negotiate hard, yes put all your negotiation skills to work here.

Once you both settle on some amount these are the steps you MUST and Should follow. It is better to negotiate with the bank itself rather than the collection agent because Bank Pays to the Collection Agent commission as high as 15% of the recovered amount and he will haress you until you pay it to the bank because the agent is awaiting his comission.

§         Get a letter from the bank in which they mention "Final Settlement of Outstanding dues" with your complete name, address and credit card number on which you have defaulted.

§         Make your payment by CROSSED CHEQUE only

§         As soon as the payment is done, close this credit card account by giving writing instructions saying w.r.t Final Settlement, I have cleared all the dues and want this account to be closed. [Keep a proof of closing this account, say banker stamps on the second copy of the lettr or send it by registeredA.D]

Preserve all this documentation for the next 5 years, atleast.
Chances are the your name will be in the CIBIL defaulters list, give time of 6 months before you apply for another loan so that the bank clears your name off defaulters list.
§         Work and Plan your finances well before you opt for any other form of credit - card, personal Loan, auto loan etc

§         Next time when you apply for any kind of credit, if your name is still in the defaulters list, then you have every right to know on which account you have defaulted. If this is the same as the credit card account on which you have defaulted, then all those documents of Final Settlement, crossed Cheque payment will come in handy here. Attach attested photocopies and try to get your name cleared off the defaulters list. Don't submit the originals you have.

§         And finally you have to live with this painful process.

If Settlement Amount is as Large as Rs 300,000 [3 Lakh] ? Hire a lawyer because the deal is big and in any case save all the documentation.

back to Credit Card Default Settlement

Getting higher limit in your Credit Card

2009-11-25T01:12:00.000-08:00

There is a specified credit limit available on a credit card for a person. This limit is the amount till which a bank will allow an individual to spend on his/her card. The cardholder will have to ensure that the total amount of use on the card does not exceed this figure. There are also times when one would like to see the available credit limit increased so that higher spends are possible. Here is the manner in which this can be achieved depending upon the situation.

Natural increase

Credit card issuing banks continuously monitor the extent of the use of a credit card along with the payment habit of the cardholder. One of the ways in which a good record is built up is by ensuring that the various dealings with respect to the card are handled properly. A responsible behaviour which means making regular payments along with the regular use of the card that is near the overall limit will be one factor that will be monitored. Once there is an adequate record the bank is likely to offer a higher credit limit to the cardholder. The rise might not be very high as compared to the previous limit but just enough to ensure that there is a higher amount available for the cardholder to spend on his/her card.

Credit card customers must read fine print

Supporting documents

Often there is a situation where the individual has had a significant rise in the salary or there might even be a shift of jobs, which results in a higher pay coming in. This will also require a higher use of the credit card for which a higher limit is required. A way in which a higher limit can then be availed from the issuing bank is by supplying it with the necessary details. This will enable the bank to evaluate the existing position of the cardholder and after seeing a rise in the level of the income the lender is likely to give a higher credit limit on the card. This will help one in using the card better and will also suit the changed conditions that are now applicable.

Change card

There are times when the existing limit on a credit card remains very low. This could be because the card was issued long ago or that a particular bank is assigning a low credit amount for the person. In such a situation, there might not be any significant rise in the limit even though there are efforts to convince the existing bank. Here, there is a better alternative available for you. This would consist of changing the credit card or even the bank issuing the card. This will involve applying for a new credit card with the necessary details to the bank. This will ensure that the new card is then taken on the basis of the latest information, which will also mean that the limit is likely to be higher for this card while the older card with the other bank can be cancelled and given back. Another route is to upgrade the card that is held by you. This will mean moving from a gold card to a platinum card and this is possible when you fulfill the required conditions. Both these steps will also ensure that there is no rise in the number of credit cards that are carried around but at the same time there is an effective use made of the limit and this has been revised upwards.

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How to Resolve Unfair Credit Card Charges

2009-11-23T10:19:00.000-08:00

You know the feeling. You open your monthly credit card statement to find the balance larger than you anticipated due to an unfair credit card charge. Whether the charge stems from the credit card company itself, or from a vendor, there are steps you can take to dispute and (often) reverse the fees. Instead of getting angry, get busy disputing those unfair credit card charges.

§ Save everything. This is an important step and you should follow it faithfully whenever you use your credit card. That means saving all your card receipts, at least until you know the merchant did not tack on additional charges. In addition, save the initial documentation that came with your new credit card by putting it into a folder. As long as that card is active, you must file that information.

Catch errors early. As soon as you receive your statement, by email or snail mail, review it carefully. Don’t wait until the last day of the grace period before checking to make sure the charges are accurate.
Call your credit card company with the intent of presenting your side of the story but not until you calm down. Credit card customer service agents are only doing a jog they were hired to do. They do not set policy but they may be able to reverse an unfair credit card charge. Chewing them out will not help your case.
Compare your credit card charges with your receipts. If a different amount was charged by the merchant, you will probably get a refund quickly as long as you can send a scanned copy of the receipt to the credit card company. The online customer service representative will give you the mailing address or it will appear on your statement.
Know what types of unfair charges you may dispute. If you find unauthorized charges, charges with the wrong date, charges with incorrect amounts, you should be reimbursed for all of these.

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Credit cards can cause Swine Flu

2009-11-20T19:14:00.000-08:00

Whether you’re worried about catching a seasonal cold or something more drastic like the worldwide panic over the H1N1 flu virus, you might want to rethink how you use your credit cards if you plan to stay healthy. You probably haven’t really thought about it, but the truth is that your credit cards can make you sick!

How Credit Cards Might Make You Sick

Credit cards aren’t special. There’s no deep dark secret behind them when it comes to your health. It’s just common sense. The more people that touch something, the bigger the risk there is of germs being present. Chances are that you aren’t the only person touching your credit cards (not to mention other items involved in your credit card transactions). You can take steps to be more cautious though, cutting down on your risks.

How to Stay Healthy When Using Your Credit Cards

Here are several things you can do to avoid getting sick when using credit cards:

1. Swipe your credit card yourself. — Don’t let other people handle your credit cards unless absolutely necessary. If you can swipe or scan the card yourself, do it.

2. Carry your own pen. — If you’ll have to sign for purchases, carry your own pen. You have no idea how many other people (ill or not) have handled a store pen before you.

3. Avoid directly touching key pads. — If you instead have to enter a PIN, try not to actually touch the key pad with your bear hands. Use the pen you brought, a napkin, or something else. Many people have probably used that touch pad before you during the day, and they could have left germs behind.

4. Shop online. — If you’re aware of a particular outbreak in your area, you might want to avoid crowded public places like stores as much as possible. You can do that and decrease your risks by doing some of your shopping online (a situation where your credit card actually protects your health).

5. Wash your hands. — If you must handle your credit cards, wash your hands as soon as possible afterwards. That way you’ll at least minimise your risk of transferring any germs from the card to your mouth or nose by way of your hands.

Simple changes in how you use your credit cards can make a big difference in keeping yourself healthy all year long, even when people aren’t worried about a specific medical outbreak. The only thing that should make you “sick” when using credit cards is the thought of paying high fees or interest. Exercise common sense and basic hygiene and you’ll keep yourself safer.

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Credit Score Ratings by CIBIL

2009-11-17T03:59:00.000-08:00

Credit report contains information about all the loans and credit cards that a customer has and some other details like:

§ Personal identification details like name, address, pan no, passport and driving license.

§ The repayment status of the account

§ Details of all the closed accounts

§ No of enquiries made by member banks

§ Amount overdue

Depending upon the payment track record of all the current as well as closed accounts that a customer has CIBIL gives rating to every individual in forms of score. It ranges between 100-900 and is a 3 digit code which shows the position of the borrower in terms of making the payments, may it be for a card or for a loan and any other facility obtained. CIBIL ratings are given on the basis of score of an individual.

CIBIL Credit Score Range

It further is divided into 3 broad categories; excellent, good, poor and fair. We can also say that CIBIL scoring id divided into three categories:

» High Score

» Low Score

» No or Zero Score

§ When a customer’s account is clean as he has been regular in making all his payments, there is no amount overdue in any of the loan and there has been no bounce or settlement in the closed accounts too, his CIBIL score would be high.

§ If the borrower has been a non performer with amount outstanding any of his account and also has settlement with member banks on his accounts, it means that he is not a good customer and his CIBIL score is going to be low.

§ If you have taken no loan till and there are no matches in your report for a credit facility, your score will be Zero.

*How to lodge Credit Card Complaint

Let us understand what does an excellent, good, poor and fair CIBIL ratings signify:

§ If the score given to you by credit bureau is in between 751-900, it is considered to be very high and your rating is excellent.

§ Anything between 700-750 is high and the rating is good.

§ If it is less than 700 and 500 it is considered to be average in case of 700 and very low for 500 and below. Similarly the CIBIL ratings go on like fair and poor if the score is less than 500.

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