My Thoughts !

You would have heard of several horror stories about Credit Cards. How the banks cheat you, over charge you, abuse you etc. Here is a nice story of a Credit Card.

I got a HFDC Card 3 years back. I used it to pay monthly utilities like phone & internet and used it for other purchases as well. Once I started using it, the advantage of Credit Card is apparent. My billing cycle of mobile is 26-25. So I get a bill sometime around 30th of every month and the last date is somewhere around 15th. I pay it by 10th with my Credit Card. My credit card's billing cycle is 10-9. So the transaction will come only in the next month's Credit Card bill. I've to pay that only 20th of next month. So I talk in August and actually spend for that only in October!

Big purchases are another good thing. I usually convert them into EMIs. I get them after 10th and convert them into EMIs. When you convert into EMI, the transaction will appear in the current month's statement but the EMI will start in the next month's statement. I don't know whether its a feature or a quirk in their system, I don't want to complain anyway. So I don't get to pay a single paise out of pocket for two months, yet enjoy watching my TV.

I always pay before the due date, so I never went into any sorts of troubles. The good part is I get reward points for all my expenditures. HDFC Bank has a huge list of items to redeem your points for. Last month I opted for Tata Sky. I've to pay a Rs 1,700 extra, but I'll get gift coupons worth of Rs 1,500. That effectively means, I pay Rs 275 (adding the shipping charges) for the Tata Sky. Thats a good deal. Tata Sky guys came in, installed and said that I got 6 months subscription free (its a new deal from Tata Sky for every purchase of Tata Sky), so I have to pay only the Rs 1,000 installation charges (which I can use the gift coupons). Adding  the remaining Rs 500 gift coupon, I get a Tata Sky hardware + 8 months of free subscription. All for using your Credit Card ! Wow! Man you got to love Credit Cards :-)