Banks do not send your statemnts on time and for sure give you gaps of couple of months so that you being busy forget to pay the amount due which in tern attracts levies, surcharges, late payments etc.???? This modus of operandi is rarely watched by millions??? I am victim of Standard Chartered Bank myself !!! Shubhrant Chandra
RE:Banks play villaneous role
by AMIT KUMAR on Apr 16, 2007 06:03 PM Permalink
You are absolutely correct. In this regard, Standard Chartered Bank does not seem to have any banking ethics. They are more into lynching money from the customers rather than providing hassle free banking services. I have had very experiences with Standard Chartered Bank.
I think that the interest should me charged on the outstanding amount beyond due date. Any purchases made in between , the interest should not me charged until the amount gets due. Kindly clarify and mention the actual practice. I believe there should be an unfirm policy for all credit card issuers. Is there any uniform policy or it varies from campany to company?
RE:Clarification!!!!!!!
by Rakish Poulose on Apr 16, 2007 09:56 PM Permalink
If you have previous outstanding on your credit card, for any purchases made subsequently, it becomes due immediately. That way, it is true that interest is charged only after the due date. The due date may not always be the due date mentioned in your statement. The due date on your statement is the date by which you have to make the minimum amount due. Read the terms and conditions of your credit card carefuly. All credit cards explicitly state these things. People take it easy and do not read these and then complain that banks are cheating. Banks are also around to make money and not for charity.
And where will the money come to pay after a float period of 45 days or 90 days or so? The writer is just tempting ordinary people in an innovative manner to go for the purchases which one normally can not afford to buy. Never use a credit card. This is a social evil. Living on borrowed money will sure invite troubles. In case you are in need of a genuine credit, look for the other options. Please do not rush to credit cards. Mighty and powerful card issuing companies are working against ordinary citizens just to make money. In fact, the government of India should bring out harsh legislation against the mindless use of credit cards.
RE:Use of Credit Card is a social evil
by AMIT KUMAR on Apr 16, 2007 06:12 PM Permalink
You will have to pay back the debt amount anyways. The author is just saying that you get a margin of 45 days. It is useful in the cases if you are expecting funds in the near future and it is imperative for you to make a purchase before you have those funds. In such a case you can use a Credit Card.
There are always good things and bad things associated with everything. Nothing is good or bad in absolute. Credit Cards are good if you identify your spending limits and spend in those limits.
The author is just asking you to be prudent while making a purchase through a Credit Card.
RE:Use of Credit Card is a social evil
by Jermina Menon on Apr 16, 2007 02:27 PM Permalink
i think this is totally incorrect. If one thinks while spending money i.e. cash, one needs to think the same while using a credit card. Its money in a non-cash form. People over-indulging and over-spending cannot be a reason to stop issuing cards. As per your logic, government can decided how much we need to spend for our daily baisc needs and allocate us only that as salary!!!
RE:Use of Credit Card is a social evil
by arun singh on Apr 16, 2007 03:20 PM Permalink
Gujrat Government has recently stopped students from getting a credit card. Such laws should be enforced by every government.
This article exactly gives out how I practice my spendings using credit card. I have 5 credit cards each with a different billing cycle. Ie. 3rd, 9th, 13th, 18th and 27th every month. I use the credit card which is at the start of the billing cycle & keep switching to the next credit card. This way all my spendings have around 40 - 45 days credit period. My average spending per month through credit cards is around Rs. 20000/-. Assuming 5% Rate of interest, I save Rs. 123/- every 45 days. Besides this I also enjoy redeeming reward points. And I dont pay any annual fee as all my cards are lifetime free ones.
RE:Credit card a Boon
by srikanth patnam on Apr 16, 2007 12:30 PM Permalink
I too practice the same method of using my credit card, i dont crib if i dont receive my monthly statements on time as i know my spending pattern and payment dates. I've been using atleast 4 cards since the last 4 years and not a single default till date.
This article is very useful information to all those who are not able to use credit cards effectively (including me;). I think there shoukld a reverse trend on on the credit card usage.
If you have an outstanding in the card say just 100/- then what ever purchases u make will attract 2.99% interest from the day you mak a purchase. The 50days interest free is only when u dont have any outstanding. THIS IS NOT MENTIONED ANYWHERE BUT IT IS TRUE
RE:never use plastic
by a saravanan on Apr 16, 2007 07:24 PM Permalink
its not emi. NEMI Never Ending Monthly Instalment. when you pay by instalments most of your instalments are interest, only a minimum amount goest towards your intial amount.
RE:never use plastic
by Rakish Poulose on Apr 16, 2007 10:01 PM Permalink
All these are mentioned in the Terms and Conditions. At least for Citibank, ICICI Bank and SBI, I know it is because I use those cards and I have read it. People who are lazy to read the documents that come along with the card compain that Banks are cheating!!!
RE:never use plastic
by BRIJ MIMANI on Apr 16, 2007 12:17 PM Permalink
Agreed. We have to understand finer points also. Once an emi is running in card any further purchase on any date would be attracting interest. So don't purchase form the card which is runnig an emi.
RE:Debit card sare plastic too
by Rakish Poulose on Apr 16, 2007 10:02 PM Permalink
Debit cards are like cash and the limit is the balance in your account.
RE:Use of plastic money
by Rakish Poulose on Apr 16, 2007 10:03 PM Permalink
If you do not know how to use Plastic Money, it is better to stay from it... lol!!!
Articles on rediff are too long - most of time good articles due to un-necessary detailes is ignored. Authors should write small article giving key inputs
