Why do we need Credit Card!. Review on Tips on Credit Card Use

Few of us started to using credit card, but still many of us hesitate to use due to fear about the electronic system. We must start using the credit card, at the same time we must be discipline in spending. This will help to reduce the black money and tax evaders. Let us see why do we need to use Credit Card(CC)

Reasons:

1. Sales tax: ST is one of the important avenue for Government income, but not even 10% of retail sale is accounted. When you pay cash, they collect money including the service tax, unfortunately the most of the money never reached the govt account. Because they're using dummy bill book and eat those money. If we use credit card, this is accounted, they must pay the tax since it is accounted and settled through banks.

For example if you are going to hotel and spending Rs. 1000 for your food. They add tax 5% and collect Rs. 1050. Rs. 1000 only for hotel and Rs. 50 should got Govt kitty, but they pay 1/10 the money only because of cash payment help them to cheat sales tax with dummy bill, but can't for credit cart transaction

1. You pay the right amount: When your bill is Rs. 968, you never get change Rs. 2. It may be small amount, but if you calculate every Rs. 2 of your expense, it will be more than Rs. 500 per year.

   
   




2. Score Points: You get some gift through bonus point, don't see this is not possible, I used to get some sort of gifts like bag, tupper wear. One of my friend got TV, if he paid cash he could have spent more and get nothing in return

   
   




3. Discounts: I use SC Millenium card, it gives 2.5% cash back beyond the 2.5% service tax. I used to get at least Rs. 25 for every fill of fuel. If I spend Rs. 50000 towards fuel, I get Rs. 1250 as cash back.  Is it small money for you? During festival season, now a days shops offer 5% cash back offer(Croma kind of electronic shop). If you buy a TV Rs. 50000, you get Rs. 2500 return. Again you score you points too.

   
   




4. It is low Risk:  Carrying cash is always risk, but not credit card. We used to hear about fradulent activities about credit card, but now a days, you get SMS on your mobile

   
   




5. Bill Payment:  I get 5% cash back for my phone bill, for every Rs. 1000 I get Rs. 50 as discount. I spend Rs.10000 per year for phone bill and get return Rs. 500. Also I pay my telephone bill on the last day as electronc bill pay mode, so I need not go to pay my bill or worry about penalties.

   
   




6. Buy now pay later: I get 45 days time to pay my bills, now a days our saving account gives 4% interest rate. If you save Rs 10000 for every month, finally you get Rs. 400 as interest/year  from your saving. If you opt fixed deposit, same amount you gain more.

   
   




7. Competetive offers: You get cheaper money through balance transfer only with processing fee. If you use properly, you can manage your dept successfully.

   
   




8. It is green: You need not drive to pay your bills or ATM when you shopping, this will save your fuel expenses. It avoids many people physical work, so those resource can be used for positive way to develop the country. It saves paper, when you pay through electronic copy and automated bill payment.

   
   




9. Credit Scores: Now a days credit score become important to buy any home or car loans. They check your credit history, when you've good history, you get your loan easily.

   
   




10. Fake Currency: When you settle your transaction through CC, it avoids fake notes issue because settlement through banks. It avoids direct currency use. Life of currency increases. Now a days we used get fake note even from ATM.

    
    

We've such a facilities with CC but we are not make use of it. So start using Credit Card is wise decision for the country to avoid black money and also make use of the facilities better way for our benefits. When all of you start using, the system will grow better and strengthen our economy.

Note:

1. If you are not disciplined person in Credit Card payment, please change your behavior or avoid using  credit card

   
   




2. If you don't have control on your expenses, try to avoid CC

   
   




3. CC companies are getting commission, at the same time low risk for retailers.

   
   

Feel free to add/review your comments to make it better. Convey to your nears and dears too.

Thanks!