Credit Card Knowledge

[kunalcc]

My brother in law is a middle class businessman and I am middle class job holder. I have passion for credit card, I am having 8 top cards with 6.7 lakh limit combined. I have earned 25k to 30k cashback over past two years as per my spending pattern. I am yet to use lounge access and also movie benefits are used less. So I can earn more from credit cards. However, I never overspend and always pay cc bills on time.

Meanwhile my brother in law has only one credit card from Indian Overseas Bank for some years now.. I could not find reward structure of his IOB card. He has credit limit of only 25k. Yesterday he was asking me how to withdraw full money from his card. I am pro at cards told him I have tricks to transfer money from cc to anyone and also bank will give cashback. However I don't know his reward structure. I told him to use 30 percent of credit limit and he should increase his limit. He made a call to his friend in IOB bank and asked how to increase credit limit. His banker friend told him what you will do with increased limit? Increasing cc limit is useless.

This is the condition of financial literacy in India. Now you know why so many defaults happen in credit card as per RBI.

 

[shrewdoc]

His banker friend told him what you will do with increased limit? Increasing cc limit is useless.

Now you know why so many defaults happen in credit card as per RBI.

How are these two statements related?

Rather, contradicting your statements I can say, if the person is planning to default on payments, and he has shit load of credit limit, that's much worse.

 

[dexter_greycells]

If you are using your credit card to transfer money to your bank account then you are playing with fire. The potential issues outweigh the gains. Also, credit card gains (cashback / points) need to be weighed against the time it has cost you. For the unemployed or part-time job types this is alright but for full-time job holders that time may be worth more than the gains.

 

[kunalcc]

How are these two statements related?

Rather, contradicting your statements I can say, if the person is planning to default on payments, and he has shit load of credit limit, that's much worse.

I shared two real life story to take lesson on credit card knowledge

 

[kunalcc]

If you are using your credit card to transfer money to your bank account then you are playing with fire. The potential issues outweigh the gains. Also, credit card gains (cashback / points) need to be weighed against the time it was has cost you. For the unemployed or part-time job types this is alright but for full-time job holders that time may be worth more than the gains.

I never misuse the feature of transferring money from credit card.
The shocking thing is that - the banker friend is also stupid. By the way, who on earth takes IOB card when there are so many fantastic cards

 

[sauravkumar]

Whatever you have said is the actual ground realities in India.😞😞

But I think now people are getting proper knowledge if they do some little research!!
And community like ours is a great initiative in this direction!!👍👍

 

[vine]

If IOB is not LTF, get him to make it LTF and don't close it.
Also apply for HDFC business cards like BizFirst, BizGrow, Biz Black,

 

[akshayhs]

I am pro at cards

Sorry, we don't assist these kinds of people.

 

[Aniket]

Sorry, we don't assist these kinds of people.

 

[kunalcc]

Sorry, we don't assist these kinds of people.

Even I will not assist him. I will only pretend to assist

 

[kunalcc]

If IOB is not LTF, get him to make it LTF and don't close it.
Also apply for HDFC business cards like BizFirst, BizGrow, Biz Black,

He says his one credit card is enough