iDentistry The Journal identistry_may_aug2019 | Page 33

The Journal
that rewards us heavily for foreign transactions
so that the transaction fee can nullify when
redeeming those rewards. On the flip side,
prepaid forex cards don’t involve any
transaction fee. They are pre–loaded with a
certain amount and allow access to cash in the
required foreign currency. The cardholder can
even top up/reload this card anytime, as per the
requirement. These cards also help in saving
the mark–up fee levied by credit cards, but to be
on safer side, keep our credit card handy as well
which can act as an additional source of funds in
case we run out of money. So the tip would be to
choose a fee free card on our travels and deny
our credit card company, the opportunity to take
our money. Also, it is also a good idea to inform
the credit card company, where and when we
are traveling so they do not suspect we are a
victim of credit card fraud.
19. Do not change your credit card too often:
As tempting as these can be, always keep in
mind that we should not change our credit cards
like we change our socks. Too much of this
activity can affect our credit score and make it
difficult to track our spending. That being said,
sometimes a change is necessary, whether it is
for better customer service or better offers and
card reward points. If our existing bank fails to
meet our needs for any reason, we should not
hesitate to end the relationship and move on.
So, the tip here would be that when we shift our
spending to a different card, try to keep our
dormant account open until the annual fee is
due. This will maximize the average length of
our credit history and in turn, improve our credit
score.
21. Maintain a low credit utilization ratio:
It is the percentage of credit that we use on our
credit card. A healthy credit utilization ratio is
anything less than 30%.
22. Keep safety as priority for your credit
card:
For the security purpose of our credit card, the
banks allow us to set a limit on the transactions
carried with it. This implies that transactions that
surpass the set limit would not be processed
and we would result in a failed transaction. This
facility is particularly helpful when used for
international transactions as international
transactions demand tighter digital transaction
security. We may also switch off the
international transaction facility on our card if
we feel like doing so by contacting our card
issuer. Some banks also allow us to entirely
switch off the card if we are not using it and if we
decide to use it again, we can switch it on and
carry out our transactions. However, the
process of switching the card on and off differs
from bank to bank. In countries like USA and
Canada, some cards can be switched on and off
by pressing a button placed on the physical card
itself, but for countries like India, we would have
to use the net banking facility or contacting the
card issuing bank. We can also set the
transaction limit on the card by contacting the
bank or through our net banking account. By
using these facilities smartly, we can protect our
card and the card details from fraudsters and
save ourselves from unnecessary financial
hassles.
20. Non-Annual or renewal fee credit cards: 23. Always report a loss of credit card
timely:
Many credit cards charge an annual, fixed fee
just for the privilege of having credit extended to
us from the company sponsoring the card.
Annual fees can often be avoided entirely by
shopping for a credit card that guarantees no
annual fee or renewal fee. In the unfortunate event of loss of the credit
card, we need to report the same to the card
issuing bank immediately. We also need to
report to the bank if we feel that the credit card
details are no longer safe and some other
individual has access to it.
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Vol. 15
No. 2
May-Aug 2019