iDentistry The Journal identistry_may_aug2019 | Page 25

The Journal
PAN, Aadhar etc.)
4. Our credit history is accurate and without a
blemish.
5. Latest salary slips (for salaried)
6. Form 16 (for salaried) 5. We have credit available for emergency
times.
7. Bank statements Credit Card Usage and Fallacies
If we are self–employed, we will need to
submit additionally:
1. Income proof (Copy of last and/or second last
IT return)
2. Statement of accounts (Balance Sheet)
3. Proof of business (Computation of income
sheet)
If we are applying for a student credit card, we
might have to provide our student ID card along
with the application form.
What does good credit actually mean?
When we say someone has good credit, it
means a combination of things. Typically it
means they have open credit available, but not
too much. They have a good and lengthy
payment history but it also means they don’t
have inappropriate debt levels. If someone has
never used credit, they don’t have a track record
for using it wisely. So, it is important to use it
when we don’t need it, so that we will have a
track record for when and if we do need it.
There are a few rules for the same which we
need to follow to ensure that when needed:
1. We have credit available.
2. We use our credit wisely and within our
means and budget.
3. We have a good or excellent credit rating.
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Credit card usage in India has increased
exponentially in the past couple of years.
According to RBI, there were over 4.71 crore
active credit card accounts in India in March
2019, compared to just over 2.7 crore cards in
October 2016 (plastic money in use before
Demonetization exercise). These numbers
highlight a remarkable shift in preferences after
#Demo in November 2016. However, new
credit card users are prone to making mistakes
when using plastic mode of money. There are
many such commonly made mistakes or as we
call in our medical lingo, a few cardinal sins that
credit card users should avoid at all costs.
Listed below are a few of those mistakes which
the credit card users make sometimes:
1. Divulging our card details and
compromising on the security:
The biggest mistake we are prone to do is to
honestly reveal all our credit card details to
anyone claiming to be a representative of the
card company. Banks and/or credit card
companies will never ask us for any confidential
details. We have to identify that anybody who
does so is a scamster out there to rob us. Also,
we have to be careful when handing over our
card at a merchant outlet, especially at petrol
pumps or makeshift establishments. There are
high chances of the credit card getting
skimmed, simulated or cloned leading to
misuse and losses. There have been maximum
such cases reported at petrol pumps where the
using personnel are also not so adept and
educated, so the onus is on us to make sure that
the card never escapes our eye and be
unattended at any given point of time. Basic
precautions can save us millions of bucks if we
Vol. 15
No. 2
May-Aug 2019