Here's how Prabhakar S uses his credit card smartly and avails of a long credit-free period:
Generally people have a wrong notion about credit cards. They feel they will lose money by using credit card. It is not true. If used properly, it is one of the best options available to meet the short term cash requirement.
I have three credit cards. I do my purchases after the billing date. That is if the billing date is on 18th of every month then I do my purchases after 18th. By doing this I get 45 days time to pay back. In between these 45 days I get 2 salaries. Hence I am able to pay it on time.
During the festival season I have to make purchases for Rs 10000 to Rs 15000. So after 45 days I pay some Rs 2000 or Rs 3000 and go for a balance transfer for the remaining amount to another card for 0% interest and 1% processing charge. So I get 3 more months.
Even after 3 months I am not able to clear my outstanding I transfer the outstanding to another card. Mostly I repay in one balance transfer.
So ultimately I get 45 days + 3 months time at 1% interest. This is simply superb.
Apart from this we get bonus points. These we can redeem.
'Received bills despite not having a credit card'
Here's how Sham Tadwalkar was offered a free credit card which was never delivered to him:
I was offered a credit card free of any charge by a reputed bank. I politely refused the card and never received it. But for three years I received bills for payments on address I was not residing. By chance I came to know about it. I lodged a complaint and I received the following reply.
"I refer to your email dated 29 June, 2007 addressed to Mr.xxxxxxxxxx, our Nodal Officer, expressing concerns on your (Reputed bank name) Credit card account. I sincerely regret that we have given you an occasion to complain on our services.
Having checked your account information, I wish to inform you that the card sent to your mailing address was returned by the courier agency. The balance on your card account is due to the annual fees levied. I have arranged to reverse the annual charges and subsequent late fees and finance charges on your account."
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