Credit Cards to Reward your Health - Part.II

HDFC Health Plus Credit Card
This health reward credit card from HDFC comes with a free cashless Mediclaim cover of Rs.50,000 plus a critical illness cover of Rs.1.5 lakhs. The critical illness cover includes open heart surgery, cancer, kidney failure and vascular stroke. You can avail cashless mediclaim facility at any of more than 3000 networked hospitals of the Third Party Administrator (TPA) across the country. HDFC has a tie-up with TTK Health care services for this purpose. The hospitalization benefits viz. the Rs. 50,000 Mediclaim and the critical illness cover of Rs.1.5 lakhs can be extended to 2 add-on card holders and thus can be used to cover your near and dear ones also. The add-on cardholders can also avail the discounts at participating hospitals.

Every Rs. 150 spent on this credit card earn you 1 reward point, which can be redeemed for exciting gifts and offers from the credit card provider. The credit card holders can also avail a 30 percent cash back on all domestic airline ticket bookings on Cleartrip.com up to 25 December 2007. This cash back offer is valid on a maximum base fare of Rs.3500.

The HDFC Health Plus credit card has an interest rate of 2.95 percent per month. A joining fee of Rs.300 and an annual fee of Rs.700 is charged on this credit card.

Health reward credit cards are a great way to put that plastic pay for your healthcare needs. However, as it with all other reward credit cards, the terms and conditions, especially pertaining to the reward programs, their eligibility, limitations, preferred partners and way the rewards can be redeemed should be given special attention and all the facts should be clarified before you start using the credit card. As the variety of offerings increase with increasing competition, we should expect a number of banks coming up with more health and fitness related credit cards.

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Credit Cards to Reward your health - Part.I

Think of the word 'credit card reward' and immediately the idea formed in your mind is that of cash back, airline rewards, shopping discounts, slashed fares on hotel reservations etc. Do health rewards strike a chord? For most of us, the answer could be a simple 'No' or 'I don't think that there are credit cards with such rewards'. Don't stretch your imagination, there are credit cards, which earn you benefits related to hospitalization or better know as 'health rewards' as you spend with that piece of plastic. The health costs are all set to rise dramatically and since, most of us have little time in our busy lives to pay proper attention to our health, its high time our credit card expenditure earn us health rewards. Here we review two such credit cards, which promise great health rewards.

ABN AMRO Wellness Card
This credit card from ABN Amro has a special tie-up with Max Healthcare and provides health rewards in more than one ways. This credit card has great health care offers from Max Healthcare and also carries a complimentary health screening voucher. The healthcare benefits can be extended to other members your family because up to two Add-on Cards can also be availed for your spouse, parents, dependent brothers or sisters and children over 15 years of age.

Staying fit is the additional benefit you get with the ABN Amro Wellness Credit Card. At Esporta gym it offers a 25 percent off on all printed tariffs and at Fitnesolution gym, the cardholders can get 1 month free on 3 months enrollment, 2 months free on 6 months enrollment and 3 months free on 1 year enrollment. In addition to these discounts a 10 percent off is also given on personal training sessions.

This credit card also offers Spa and Massage benefits. Cardholders can avail 15 percent off on Rs.1000 or above billing at Reeta Juneja Aromatherapy & Spa. If you want to avail membership at the Spa, the credit card will get you a 30 percent off on half yearly membership and 40 percent off on annual membership. Cardholders can also get 2 year subscription of Asia Spa Magazine - health, wellness, beauty, luxury and lifestyle magazine at a special offer price of Rs.400 and there is also a free gift waiting for all those subscribing it.

Every Rs. 50 spent on the card earns you 1 Bonanza Reward Point. and these reward points can be exchanged for exclusive gifts. However, you must accumulate 500 Bonanza Reward Points before they can be redeemed.

This MasterCard issued by ABN Amro charges an interest rate of 1.49 percent per month and has a joining fee of Rs.295. This credit provides the above mentioned offers at an annual fee of Rs. 750 and add-on cards can be availed by paying an add on card fee of Rs. 395 per card.

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How to lodge Credit Card Complaint

India's banking ombudsmen received as many as 3,087 credit card-related complaints against foreign banks and 7,020 such charges against Indian banks in the financial year 2007-08.

The number of credit card-related complaints against foreign banks and Indian banks stood at 2,187 and 5,501, respectively, during the previous year, according to Finance Minister P Chidambaram.

The finance minister said in Rajya Sabha recently that the Reserve Bank of India had undertaken a study on the credit operations of banks, which also included issue of unsolicited calls.

*Credit Card Goof-ups by Banks

In the wake of the global economic crisis, it is important to note that banks in India are not very stringent in terms of assessing the credit worthiness of people before doling out plastic money. The credit card outstanding dues with all banks amounted to Rs 26,596 crore (Rs 265.96 billion) as on May 13, 2008.

It's only when defaults start rising that banks sit up and take notice. Many a times, a card may be misused by someone else taking the 'defaulter' by surprise. Despite the RBI's strict guidelines on issuance of credit cards, the problem persists and complaints continue to pile up against banks.

The central bank guidelines provide that any loss arising out of misuse of such unsolicited cards will be the responsibility of the card issuing bank only and the person in whose name the card has been issued cannot be held responsible for the same, Chidambaram said in the Rajya Sabha.

He added that an RBI circular issued earlier advised banks that unsolicited credit cards should not be issued.

"In case an unsolicited credit card is issued and activated without the consent of the recipient and the latter is billed for the same, the card issuing bank shall not only reserve the charges forthwith, but also pay a penalty without demur to the recipient amounting to twice the value of the charges reversed," the RBI circular stated.

The International Consumer Rights Protection Council states that ICICI Bank issued a credit card to a person who passed away 12 years ago. This card was misused and the statement was sent to the person's son for payment of Rs 36,000.

Recently, after a family of four committed suicide in Mumbai, it was found that two members of the family had 72 credit cards! How did they manage to secure so many cards? Who will pay up in cases like this?

The number of complaints received by the banking ombudsman offices has constantly increased, with more than a three-fold increase in 2005-06 from the previous year after the Banking Ombudsman Scheme 2006 was notified.

The increase was also observed in the year 2006-07 with a 22 per cent rise over the year 2005-06, said the Reserve Bank of India's annual report on banking ombudsman.

*Credit Card Operations of banks- RBI Guidelines  

In 2006-2007, SBI Cards topped the list of complaints from credit card-holders, with the banking ombudsman receiving 2,654 complaints against it. There were 1,451 complaints against ICICI Bank.

In 2005-06, the ombudsman offices received 31,732 banking-related complaints. In 2006-07, the number of complaints received was 38,638.

The RBI had first introduced the Banking Ombudsman Scheme in 1995 to provide expeditious forum to customers resolving their complaints relating to banking services.

The complaints often related to deposit accounts, deficiency in servicing of loans and advances and delay in collection of cheques/bills.

In 2006-07, the largest share of complaints received were credit cards complaints, which accounted for 20 per cent. Among the complaints received, there were 7,688 credit card-related complaints and complaints on deposit accounts stood at 5,803.

The non-issue of credit cards, issue of unsolicited cards, non-despatch of account statements on time, levy of excessive service charges, levy of late fees despite payments being done on time are some of the common complaints.

Many people also face the problem of banks refusing to cancel credit cards, freezing of cards without informing the cardholder and harassment by recovery officers.

Here's how can you get your banking-related problems solved...

The RBI states that in the case of any banking-related complaint, the customer has to first try to get a solution from the bank. He can file a complaint before the Banking Ombudsman if a reply is not received from the bank within one month of the bank receiving his complaint. He can also move the Banking Ombudsman if the bank rejects the complaint or if he is not satisfied with the reply given to him by the bank.

The complainant can file his/her complaint in any form, including online. You can file your complaint onlinehttps://secweb.rbi.org.in/BO/compltindex.

The customers can also appeal to the Reserve Bank of India against the awards given by the Banking Ombudsman

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Credit Card Balance Transfer

Today all banks try to induce potential customers to switch from one credit card to another by offering balance transfer that too at a cheaper rate. It is generally known that low interest rates or sometimes even zero interest rates are available for balance transfer. But you should know that these rates are for introductory period only (say 3-6 months) and once this grace period is over, it returns to the normal rates, that is, what your previous credit card company charged you.

Even still the rate of interest which you might be paying for your outstanding credit dues will always be higher than the balance transfer interest rate.

What does balance transfer mean?
Balance transfer is a facility offered by all the credit card issuing companies to cardholders which enables them to transfer the existing outstanding or debt of one credit card to another one that is less used or even new.

The credit limit of the new card or less used card on which you want to transfer the balance amount reduces proportionately to the balance transfer amount. Say the credit limit of your card is Rs 25,000 and you have opted for a balance transfer of Rs 10,000, then the credit limit on your original card will be reduced to Rs 15,000.

But here too you must remember that your balance transfer amount should not exceed 80 per cent of your credit limit. That is, if your credit limit is Rs 10,000 then the maximum balance transfer you can have will 80 per cent of this amount which is equal to Rs 8,000.

Balance transfer process
Before entering into balance transfer, it is important for you to know the process involved.
As a first step, you have to inform the credit card issuer from whom you would avail of a balance transfer that you want to avail of the balance transfer facility.

The credit issuer will then send an officer with a balance transfer form. Here you have to fill in all the details of your old credit card and also attach your latest bill statement.

Normally after 7 to 10 working days, the credit issuer will send a demand draft (DD) to your residence which will be in the name of your old credit card issuer. After you submit this DD to the old credit card issuer your outstanding gets cleared. Now you have to pay the transferred amount to the new credit card issuer.

Credit Card Balance Transfer - Few Tips

What to watch out for...
On reading the above process carefully, you will find that there are certain things on which you have to keep a very close watch.

As you know that the entire process takes 7 to 10 working days or even more, here you need to sense the catch here. While you are waiting for the balance transfer amount there are high chances that you may miss the due date of your existing card's payment.

If you miss this due date then you have not paid even the minimum amount due on your card thus defaulting on your monthly obligations. This can have an adverse effect on your credit report.

Thus it is always advisable to keep on paying the minimum due amount till you receive the DD of balance transfer amount.

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