This is useful for Novices of Credit Card. If you know how to use it, Credit Card(CC) is a great advantage. For instance, I need to make a payment of Rs. 10000 every month for a ULIP(Unit Linked Insurance Policy).
I used to pay by cash/cheque/Debit Card before I had CC. Now I use it this way, I pay using my CC such that I get a 45 day credit period to pay back. So, instead of an immediate deduction of Rs. 10000 from my savings account, I have a time of 45 days to pay it back. The money I want to pay for can be kept in an FD(Fixed Deposit) for 45 days, which gives me an interest of(Rs 10000 * 6% * 45/365)=Rs74 /-
*Am I not simply saving Rs74 every month.
*Is it not worth the small effort that we have put!
Know your card and you can benefit from it.
It’s a big subject, which I tried to make it easy to start with.