iDentistry The Journal identistry_may_aug2019 | Page 32

The Journal
Check the CIBIL (Credit Information Bureau
[India] Limited) score or credit score at least
once a year to ensure accuracy. Many websites
like paisa bazaar check the same for free every
month for us (just be sure we aren’t signing up
for any paid services in the process) otherwise
we can request via online banking or physically
requesting bank to do, they will get the same for
a charge of around ` 500–600. Be aware that
this may not be the same credit rating as the one
lenders use, but it should give us a good
indication generally.
17. Decide a few aspects before applying for
any credit card:
Know what kind of customer we are and which
type of card will benefit us more. Choose a bank
that offers us what we require and not let the
bank choose us. Research online between
different banks or use websites like Paisa
Bazaar or Bank Bazaar etc. to make
comparisons. Always make an informed
decision. If we choose to apply for a credit card
through a telecaller, don’t hesitate to ask for the
requisite information. We should not let
ourselves be pressurized into a wrong credit
card. Credit cards come with great
responsibility and one should not take it lightly.
Cardholders must read the fine print (offer
document) that comes with credit cards. No
matter how boring it must be, we should read all
the terms and conditions. We as cardholders
should make sure that the reward system suits
our financial needs and our lifestyle. If we aren't
frequent flyers, we should not opt for cards that
provide flying benefits or AirMiles. If the
cardholder has a rewards account that they are
unsure of, they should take note of what is
available to them by getting in touch with the
customer care executive. This will help us to
become familiar with the kind of inventory, we
possess in the form of a credit card.
18. Preferably don’t use your credit card
overseas:
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Most credit cards issued in India are accepted
across the globe, but it does not mean that we
should use them in any country without knowing
the charges associated with it. Whether online
or offline, always keep in mind that using credit
cards abroad attracts currency and
network–based charges, such as mark–up fees
or foreign currency transaction fee, cash
advance fees, which is charged as per the
transaction’s value including the mark–up
charges applicable, etc. (Markup charge is
basically the difference between the input cost
and the final output cost which creates profit for
the company. It is decided on the basis of a
certain ratio which is calculated from the cost of
a good or service and its selling price). This
process inculcates huge amount of transaction
charges overall as well. Therefore, it becomes
necessary to keep a tab on our foreign currency
mark–up fee, foreign transaction fee and cash
withdrawal charges when we use our credit
card abroad. If we use our credit card abroad,
we would need to pay in the currency of that
country only. In this case, a conversion fee will
also be applicable. The network will
automatically charge anywhere between 1–2%
fee on foreign currency exchange and anything
in excess will be a small margin of profit for the
select bank, if any. In addition, lenders also
charge a foreign transaction charge. This can
range from anywhere between 1.5–3.5% of the
total transaction. While this may not seem a lot
for smaller transactions, for big ones these can
run into several thousands of rupees. Cash
withdrawals can also cost us anywhere
between 1–4% fee in addition to the standard
cash withdrawal rate for our credit card. So, it
makes sense to carry cash or a travel card
whose charges are muted compared to our
credit card. Although some may argue, that
while travelling abroad, credit cards save us
from the hassle of carrying excessive cash and
provide ease of transacting. So, if we are a
frequent traveler, opt for a credit card that has a
minimal transaction fee and there might be
certain cards that may even offer a ‘No Foreign
Transaction Fee’ option. Also, selecting a card
Vol. 15
No. 2
May-Aug 2019