I have been a SBI credit card user for 3 years and haven’t faced any trouble so far. I use a Gold and More card which comes with a 499/- annual charges, waived off if usage in previous year is more than 50, 000. My charges were always waived off.
Some Advantages:
1) Their point system is fair. 2 points per Rs 100 for all transactions except Big Bazaar. In BB, you get 10 points per Rs 100. Additionally, you gain payback points in Big Bazaar, which are over and above SBI points.
2) 1 point is equal to Rs 0.25, and you can redeem it for money. I always go for cashback of 250/- for 1000 points, or in multiples. (Don’t even think about rewards catalogue, its crap. They will sell a 50/- thermometer for 1000 points, or 250/-)
3) Spends Based Reversal(SBR). They ACTUALLY revert annual fees if you spend more than 50, 000 in Gold and More Card.(Don’t know the exact threshold amount for other cards).
4) They automatically rectify service charges. I usually pay my bill on last due date via NETBANKING. Their system applies late fees if credit is not received by last due date. But 1-3 days later, they also remove charges, suo moto, when they realise that payment was actually done on time.
CONS:
1) Customer service is slightly sluggish, you have to enter your card number, compulsorily hear your due amount and due date, only then will you be able to talk to customer care.
2) Fuels attract 2.5% surcharge. So I don’t buy fuel using this card. Of course, you should also take care of the followings things from your end irrespective of whichever credit card you use:
1) Always PAY FULL AMOUNT. In my 10 years of credit history, I have always paid full amount, every single time. Credit card interest rates are very high~ 50% per annum(compared to~10% for housing loan).
2) PAY ON OR BEFORE DUE DATE- late payments charges are usually very high for all banks. NEVER delay payment. It will destroy your CIBIL report forever.
3) Always PAY USING NETBANKING/DEBIT CARD and save the receipt. Don’t use cheques etc, they are obsolete ways and involve human mistakes/delays etc.
4) Do not wait for statements to arrive by post, don’t be old-fashioned. Subscribe to emails/sms. Infact the best way is to check your online account, find total amount due for last statement and pay the full amount via netbanking/debit card.
5) Treat your card like cash. Be frugal. Dont be a spendthrift just because you have a credit card. Most consumer discounts schemes are bogus. They will inflate the goods price by 50% and give 10% discount:D
6) Keep customer care number/card number handy in your phone, you’ll need it to report loss of card.(Save card number in a different contact so that its not misused in case you lose phone).
6) General tip: Do lots of savings. My savings rate is over 70-80%