iDentistry The Journal identistry_may_aug2019 | Page 31

The Journal
as a convenience only and staying within the
marked budget always helps. Spending only
what can be paid back easily is the best bargain.
Pay off the bill in full, each month and always.
This should always be our goal for routine
purchases made like groceries, entertainment,
leisure and petrol/diesel. There should be a
conscious effort always to control expenses by
sticking to a fixed budget. So, instead of just one
card, we can keep 2–3 credit cards so that we
don’t exhaust the limit totally, but if the billing
cycles of each card are different, make sure we
set the reminders for dues dates lest we should
miss the timely payment.
9. Smartly use your reward points and timely
also:
Spend only when we must and as per our
budget and always timely encash the reward
points every 1–2 years and that too smartly, on
things we need and not just for the sake of it. If
the credit card company allows, adjust the
reward points against the bill payments as cash
points.
10. Keep your cards active to maintain a
healthy credit score:
Keeping the cards active even if we don’t use
them. Revolve usage over 2–3 cards to
maximize the credit–free period extended to
each one of them.
11. Seek out a reputable credit card:
Fortunately, there is a great deal of regulation of
credit cards requiring full disclosure of all
relevant credit terms being extended by the
card issuer. Check interest rates as they can
vary considerably depending on our history or
lack of one. Check terms, fees (be sure we don’t
have to pay them) and other variables before
we make any written commitments (read the
offer document carefully). Check rewards,
incentives, bonuses and other variables. If we
qualify for any special card mentioned by the
company representative, do check the
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advantages of using such a card. Be careful to
review all credit documentation thoroughly
before selecting a credit card for regular use.
12. Limit yourselves to no more than 2–3
cards per person:
Always don’t have more than 2–3 cards,
preferably 2. A card holder’s spouse should
have a separate card (if desired) and establish
his/her own credit history. The first and foremost
aim for any card holder should be to establish
credit history and have a proven track record
that we can use a credit card responsibly.
13. Track your purchases always:
Keep accurate records and retain receipts at
least till monthly statement is generated and
paid up. Otherwise, also we can track our
spending on a notebook, an excel spreadsheet,
expense software or an app. We should be
crystal clear to know what we owe to the bank or
financial institution before the statement arrives
(at all times, really) and be able to tell if there is
an error in our statement. Check the bills each
month to verify accuracy of transactions as well
as rewards, such as points or cash back.
14. Ask for a lower interest rate:
Once we start building a good history (usually
after one year), we can ask for a preferential
lower interest rate which is usually almost
always granted by the bank or the financial
institution if our credit history has been good.
15. Take advantage of the card promotions
offers on special days:
Look for and take advantage of all the credit
promotions on the credit card but never extend
or obtain credit simply because of the
promotional offers.
16. Keep checking the CIBIL or credit score
once a year minimum:
Vol. 15
No. 2
May-Aug 2019