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Use Credit Cards Or Avoid Them ?

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bobby_123
Use Credit Card or avoid Credit Card in India

Credit cards are a great tool. You get cash back or rewards. You get added safety. This is why I am a huge fan of using credit cards for those who can use them like a debit card. 


Should we continue keep using it regularly or only in emergency ?
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We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
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Deal Lieutenant Deal Lieutenant
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@bobby_123 ... in my opinion, one should use it as much as they can but only for their own expenses and occasionally for their friends/relatives.

People create situations where they can pay via credit card and I guess because of this, some of them even land in trouble and get notice from Income Tax department. Then there's revolving credit and what not. Even that's debatable, if someone can handle all this efficiently, good for them but certainly not an example to be set for people new to this space.

In short, if someone is a disciplined spender and can keep track of their finances, credit card is a good thing, in fact the best thing 😇

P.S. I hold 13 credit cards and happily use them to their max. potential and track payment via Excel spreadsheet.

Helpful Helpful
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Hi bro can you share excel template with me in DM as I am holding 20 credit cards😂

Deal Lieutenant Deal Lieutenant
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@rockingneo here's how it looks :

image

Deal Captain Deal Captain
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Using CC since 2003, at one point, I had 27 cards, now 8... I use them as pee requirement and have aligned all cycles such that all of them have 21 to 20 billing... I get salary on 5th and pay on same day as mostly 7th is the due date.

I easily manage spend by using an Excel file, which has my MF tracking,  fixed expenses like school fees for kids, insurnace premium, and other tracking. I track all bank accounts of mine and family, home loans, wallets,etc. through that file. First made in 2005 with a simple table, now with 15 tabs and huge interlinking, update it once a week to track my overall expenses and not only CC related... at any point, I have a budget made for the next 12 to 15 months for fixed and known expenses, which helps to plan better... I am a finance guy, so may be it's inbuilt...

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Deal Cadet Deal Cadet
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Use regularly.

Keep control on your spending

Deal Lieutenant Deal Lieutenant
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@bobby_123 ... in my opinion, one should use it as much as they can but only for their own expenses and occasionally for their friends/relatives.

People create situations where they can pay via credit card and I guess because of this, some of them even land in trouble and get notice from Income Tax department. Then there's revolving credit and what not. Even that's debatable, if someone can handle all this efficiently, good for them but certainly not an example to be set for people new to this space.

In short, if someone is a disciplined spender and can keep track of their finances, credit card is a good thing, in fact the best thing 😇

P.S. I hold 13 credit cards and happily use them to their max. potential and track payment via Excel spreadsheet.

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Hi bro can you share excel template with me in DM as I am holding 20 credit cards😂

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Helpful Helpful
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@bobby_123

everything on cc

Deal Newbie Deal Newbie
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How to get credit card, I have excellent credit score but don't have any income..

Deal Lieutenant Deal Lieutenant
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you can start with FD based (secured) credit cards like OneCard, you can DM me for referral

for metal credit card, minimum 50k FD is required

other options are IDFC Wow credit card which is also FD based, I can refer for this as well 😊
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Helpful Helpful
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I have 10 cards and started using credit cards since 2006.

It has been great experience and many of my friends till now haven't used cards because of fear, misconceptions.

I used google calendar repeating tasks for payment reminders , now cred app also helps.

I used to keep excel sheets for statements with Reward Points calculation. Did it for few years and realised that there was hardly any mistake in calculation by banks so haven't bothered much since last few years now.

Deal Newbie Deal Newbie
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If u have money then use credit card get rewards and pay the money same day via cred, mobikwik.. if u don't have money don't touch them u will pulled into a debt spiral

Deal Newbie Deal Newbie
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This is a good sheet. However, it takes too much Manual tracking on a regular basis. Unfortunately in India, we do not have Personal Finance Software like Quicken since 99% of banks are not regulated and do not have compliance standards. Only the top 20 or so maintain standards and services. Rest 180 banks keep dragging their services. A good way to maintain and consolidate all accounts would be apps like Walnut or CRED given the fact we recieve timely sms that is tracked.

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Deal Captain Deal Captain
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Using CC since 2003, at one point, I had 27 cards, now 8... I use them as pee requirement and have aligned all cycles such that all of them have 21 to 20 billing... I get salary on 5th and pay on same day as mostly 7th is the due date.

I easily manage spend by using an Excel file, which has my MF tracking,  fixed expenses like school fees for kids, insurnace premium, and other tracking. I track all bank accounts of mine and family, home loans, wallets,etc. through that file. First made in 2005 with a simple table, now with 15 tabs and huge interlinking, update it once a week to track my overall expenses and not only CC related... at any point, I have a budget made for the next 12 to 15 months for fixed and known expenses, which helps to plan better... I am a finance guy, so may be it's inbuilt...

Deal Cadet Deal Cadet
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@sahil1033 How can we optimize for 750 HDFC Platinum DC cashback?

I know about 400 cashback. Not 750.

Deal Lieutenant Deal Lieutenant
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HDFC Millennia DC gives 1% cashback upto Rs. 400 on wallet load whereas HDFC Platinum DC gives 1% cashback upto Rs. 750 on Telecom and Utilities category.

For optimizing maximum cashback, keep all your CCs statement date between 20th to 22nd of every month. So, if at all your total bill across all your CCs crosses Rs. 75,000 mark, pay Rs. 75,000 by 2nd last day of the month i.e. 30th/31st or 28th/29th in case of February and rest of the bill in next month. Why 2nd last day and not last day of the month you may ask ... that's because it has happened with me once, I paid bill on last day but it was settled on next day, so, missed out some cashback there (complex explanation but I hope you got my point).

If you keep 20th as statement date, in worst case scenario, your due date will either be 4th or 5th of next month giving you enough time to clear the bill even if you pay promptly on 1st of next month taking into account 45 days interest free period.

This way, in each billing cycle, you can extract Rs. 1,500 cashback as opposed to Rs. 750 😊

P.S. In HDFC Bank internet banking -> Bill Pay & Recharge, paying your credit card bill comes under Utilities category and that's how you get 1% cashback on CC bill payments.

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Deal Cadet Deal Cadet
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If you have very strong self control on your expenses then you can.

One of my close friend over the years got so addicted to spend using credit card that from last 1 year he's credit card  bill is always 1.5-2X of his salary.

He do things which he can't afford. He went to international trip despite his high cc bill, buys expensive phones, go to expensive pubs  and from last 1 year he's just rolling over his CC bills using various wallets and losing 2-3% every month in the process.

Most of the times he's always dry on cash, his salary gets completely over in the 1st day itself to pay CC bills.

Benevolent Benevolent
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That's why they say ,always cut your coat according to your cloth.😌

Deal Newbie Deal Newbie
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If you don't know how to use it, don't use it, credit cards are always better than using your own money

Review Expert Review Expert
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If you cannot pay all your credit card bills in full every month then STOP using them. A credit card is the absolute worst way to borrow money / take a loan on interest.

If you can pay your credit card bills in full every month and have the willingness to evaluate every entry in your statement for a cost-benefit analysis then continue to use them.

Heart of Gold Heart of Gold
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I'm managing a spreadsheet which is simple and easy to manage for tracking all the expenses and bills for my CC's, below is an example of what it looks like.

image

Deal Cadet Deal Cadet
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Couldn't see the link anywhere:(

Deal Newbie Deal Newbie
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Main point to remember -

Best for People who can use their CREDIT CARD as a DEBIT CARD.

Analyst Analyst
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The question should be who is spending more, one who spends with CC or who uses cash. I tried 3-4months with cash and my spends cut by 4-5K every month. CC , we don't know the pain of swiping which we feel and when we touch and count the cash. Of course its personal though.

Lets say i buy grocery from D-mart as its the best place to spend 1500 4 times using amex CC. after 4th swipe if we fall short of 1500 which is case many times i grab chocolates or something near to counter to make it 1500 there by buying unnecessary things and spending 150-160 more every time. Net net unless someone plans well ahead or lives in joint family who have more than 25K spends a month or runs a small shop or business or do rotation business, its not possible to use all CC to their max potential. My personal opinion.

My first cc in year 2000 with SBI and Standard Chartered.

Deal Subedar Deal Subedar
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I had no issue with managing my 4 credit cards. Using them maximum, being careful regarding payments on due dates and availing offers on these cards is what I follow. Another rule I have is never live on credit cards. So far very good experience with these cards.

Deal Subedar Deal Subedar
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It's simple for some credit card is good & for some not. If are not enough earning & keep spending credit cards then at some point you will will trapped in debit. So spend it wisely.

Deal Cadet Deal Cadet
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if you can control these things than its fine to keep credit cards ... else big no 

1. Pay always on or before time ..  
2. Don't overspend or lavishingly  which you can't pay later , see your income first 

3.Try not to get EMI's . more than 1 at a time ... it creates unecessary burderns , interest as well extra charges 

else credit cards will trouble you like any ghosts .. 

Deal Cadet Deal Cadet
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I think one credit card is good enough. More than one change our expense habits.

Deal Cadet Deal Cadet
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Requesting dimers like @sahil1033 @InvestPotato @arorasid should discuss and develop a common excel which will help to track bills and cashbacks. if possible as mentioned by @arorasid there should be a master excel where everything is available.

Deal Newbie Deal Newbie
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As I do biz I have more than 20+ cards and usually spent on air ticketing bill payments and  many other online  spends and my spending is around 2.5L per month .. usually I m decreasing my spending from my cards and increasing usage from frnds and family cards

Deal Cadet Deal Cadet
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Don't be penny wise, pound foolish. The amount of time you would invest in searching offers, tracking cashbacks, maintaining expense spreadsheet to save pennies, will yield huge returns if invested on yourself (learning, networking, upskilling, fitness)

Deal Cadet Deal Cadet
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As provided with the content with OP that credit card is always good when used as debit card and I always prefer to use like this.

I am currently holding 4 unsecured credit cards which covers the sale offers. 

I have a rule "don't buy a product if you don't have that amount in your account" and strictly no EMI.


Deal Newbie Deal Newbie
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Hi

Deal Newbie Deal Newbie
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I never used credit cards, I have my debit cards and that's more than enough to manage all my expenses and needs and I don't like buying thing by taking a credit or loan.

Cool Cool
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Having credit card does not mean u can buy only on emi or loan

Use credit card card like a wallet

Earn cashback and offer from credit card and pay amount of credit card instantly from your debit card

I do this simply and have earned more than 15k cashback from sbi credit card in 9 month

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Deal Captain Deal Captain
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Its Good to Avoid for your peace and happiness in Life

Deal Newbie Deal Newbie
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Use credit card with discipline..

Deal Subedar Deal Subedar
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Any tips to get the AU Zenith card reissued without charges please

Budding Star Budding Star
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@abhishek012  any guidance ?
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