Thread by @managefin

Let's understand credit card and charges around it. Especially in India.
Many people's are afraid of credit cards due to interest,late payment fee, typically more spending habits.
Lets us try to explain on how to use credit card and njoy the rewards.
1/n
#creditcard
#managefin

Facts: Developing countries have more interest charges than developed contries.

In india the interest rate per month ranges from 1.8%-3.2% based on bank or the card you choose/eligible.

The interest rate calculated annually is called APR.

2/n

#managefin
#creditcard

Lets make it clear on when you will pay interest.

When you missed to pay the statement total amount interest rate will be calculated from that day.

If you withdraw money in ATM using #creditcard interest will be calculated from the day amount is withdrawn.

#managefin

3/n

Interest will be charged even you pay minimum due amount mentioned in the statement. Interest will be calculated for rest of the due amount.

So if you pay the total amount on or before due date. Your good.

Tip: Try not to pay on the last day.

#managefin
#creditcard

4/n

Lets talk about late payment fee. Multiple banks will have multiple late payment fee based on the credit you have.
If you have premium credit card the late payment will be higher or may be lower.
Sometimes it will returned based on your relationship with bank.

#managefin
5/n

Lets see how to utilise the credit provided to you. Never utilise more than 45% of the credit provided to you.
To the max it should be 55% if you want to maintain your credit score.
If you want more credit check with bank or lender to increase your credit limit.
#managefin
6/n

Tips:
*Never show 'credit hunger'
*Never make late payment
*Never utilise more than you could pay
*Control your spending habits
*Read your statement monthly to find any hidden charges
*Try to find right credit card for you based on category you will spend most

#managefin
7/n

Why we recommend use of credit card

*You will rewards based on spending
*Your credit score will improve- trust me
*You will learn more about finance
*You will get to know about your spending habits.
*You will be aware of amount you spend on unwanted material

#managefin
8/n

What not to do with credit card

*Never miss bill payment set reminders
*Never over spend than your limit
*Never spend more than you can repay
*Utilise credit as low as possible
*Control your spending habits

#managefin
#creditcard

9/n

Use #cred app to manage bill payments or manage your credit card.

10/n

Checkout below link to download #cred app.
cred.onelink.me/spQx/ae833c4e

#managefin
#creditcard
#personalfinance

@kunalb11 @CRED_club