The interesting points seen in the world of credit card are first, people fall in trap of credit card issuers with their fancy offerings and second, we fancy in front of others to having multiple credit cards. This presentation talks about how one can manage credit cards

1. 5 ways to effectively
manage credit cards
http://www.arthayantra.com/

2. The Fancy World of
Credit Cards
• Credit cards boost the credit score of the user if
used wisely.
• Likewise any mismanagement on part of the card
user will hamper their credit worthiness.
• The way one uses it affects the future of their
personal finances.
• Credit card users should take time to understand
how the card issuers and the credit bureaus view
how one uses or not uses a credit card. Outlined
are 5 areas that a cardholder should use to
manage one’s credit wisely:-

3. 1. Read the fine Script
• After 2008 financial grid collapse banks
and credit card issuers are trying to reduce their high risk
exposure.
• As a result, higher fees is charged for any usage above the
credit limit and delayed payments after due date.
• The change in the charges or fee structure is usually reported
but in a tiny script which is easy to miss. Avoid being charged
extra by using the internet to periodically micromanage one’s
account by registering for online statements. Scan them for
any changes in the charges and rates. If there is an
overcharge call the card services and talk to them about it.
Negotiating with them and citing previous payment history
and longevity of customer relationship helps at times to waive
the charges.

4. 2. Understand
balance Transfers
• Card issuers will always find ways to attract customers.
One of the popular methods is through zero percent balance
transfer.
• However, this is a promotional offer and the 0% interest is limited
to offer period which is usually six months.
• After the six months the balanced amount attracts same
interest as the regular outstanding balance. If the interest on
the new card is higher, then transferred balance will attract
more interest if not paid within the interest free period.
• Besides, any usage beyond thirty percent of a person’s total
available credit will affect their credit score. It is ideal to transfer
balance on to a card which has no previous outstanding
balance and pay it off within six months. In this manner a lot of
money in form of charges and interest can be saved.

5. 3. Use the
interest free dates
• Cardholders can utilize the interest free period to use their
credit to their advantage.
• They have time to receive their statement and make full
payment without attracting any interest. This period is usually 51
days of interest free credit starting from the statement date to
the due date.
• For example if a statement is generated on 1st January then
the due date will be 20th February. There is a misconception
that all the purchases attract 51 days of interest free credit. This
is not the case for purchases made during the middle of
statement period.
• In the same example, any usage made on 15th January will get
only 36 days of interest free credit. So check for the important
dates on your statement and keep a tab on all payments.

6. 4. Negotiate for
Better Rates
• If a cardholder has been a loyal
and good customer, chances of negotiating for a
competitive rate works.
• Banks and card issuers tend to pass such brownie points to
retain good customers. Take advantage of being a good
customer.
• Credit card companies also offer reward points as freebies
and promotional offers. Make use of such rewards to
reduce the amount paid in terms of charges.
• A little saving on the cost of funding ones expenses is as
good expense management practice.

7. 5. Apply for a useful
Credit Card
• Every time one applies for a credit card the credit
score is checked.
• While maintaining two or three cards is relatively
good for the credit score as it registers our payment
history into account, too many can signal trouble.
• Future lenders can be wary of people who maintain
too many cards. So don’t apply for a credit card
unless required.

8. THANK YOU!!
You Can read the full article at:
5 ways to effectively manage credit cards
To read more on Financial Planning visit:
Blogs on Personal Finance