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Credit cards. Thread. 
Simple financial advice: If you're using UPI, cash, or debit cards, you're doing it all wrong.
In the age of credit, you're losing out *at least* 30k/annum by using debit.
DON'T.
Simple financial advice: If you're using UPI, cash, or debit cards, you're doing it all wrong.
In the age of credit, you're losing out *at least* 30k/annum by using debit.
DON'T.
Ok, goes without saying: This advice is for folks who have strong financial discipline. If you're the kind who spends recklessly, and struggle to save money at the end of the month, credit cards are not for you. 
The way I look at it: Treat your credit card exactly like a debit card. Spend corresponding to how much you have in your savings account, not more.
As long as you follow this religiously, you're safe.
As long as you follow this religiously, you're safe.
Why use a credit card in the first place then?
CC offers a whole bunch of discounts & offers - helps save money in the process. Also, helps with: loans, better interest rates, visa applications & a lot more.
In all, Credit cards reward good behaviour - Timely payments.
CC offers a whole bunch of discounts & offers - helps save money in the process. Also, helps with: loans, better interest rates, visa applications & a lot more.
In all, Credit cards reward good behaviour - Timely payments.
Rules to follow:
- Initial stages: Make sure you pre-fix a maximum limit you want to spend each month - most cards allow for this.
- Pay your bills as soon as your salary gets credited - so you don't have to worry about late fees etc.
- Initial stages: Make sure you pre-fix a maximum limit you want to spend each month - most cards allow for this.
- Pay your bills as soon as your salary gets credited - so you don't have to worry about late fees etc.
NEVER use your credit card to withdraw money from an ATM (some cards allow this) - That's a black hole you don't want to enter.
Why use credit cards?
Points - Which can be redeemed for purchasing items at a discount
Airport Lounge access - Complementary.
Discounts - Hotels, bars, luxury experiences...
Air miles - Cheaper tickets, priority boarding
This list is endless, and depends on the card you pick.
Points - Which can be redeemed for purchasing items at a discount
Airport Lounge access - Complementary.
Discounts - Hotels, bars, luxury experiences...
Air miles - Cheaper tickets, priority boarding
This list is endless, and depends on the card you pick.
Where to start?
The bank account you currently have your salary/savings account with. That's the best place to build a credit portfolio score. (6 months) Then you can branch out to other cards that offer A LOT MORE value.
The bank account you currently have your salary/savings account with. That's the best place to build a credit portfolio score. (6 months) Then you can branch out to other cards that offer A LOT MORE value.
Choosing the right credit card is important. For ex: Diners' Black minimum spend is 8L per annum to eke out all the benefits. If you don't spend that much, get a card that's tantamount to your lifestyle.
