Credit cards are a convenience products and come quite handy. You can avoid handling large amount of cash, purchase now and pay later, and get the benefits of numerous offers.
Here is few advices based on my experience with handling credit cards for last few years.
Lower the cost of the cards(read joining and annual fee). Now almost every bank is offering life time free card. Look at the cards which have no strings attached. Some will require you to make a minimum purchase, some will ask for at least one transaction - so choose which has the least commitment on your pocket.
Go for a co-branded card if your usage justifies it. I am yet to see free offering for most co-branded ones. So look at the rewards points offerings and see whether that can cover more than the annual fee+service taxes.
Use your credit card as a charge card - spend only so much which you can settle fully. Interest charges+service tax will really pinch your pocket. Only in rarest of rare cases, like a medical emergency, you should make an exception.
Avoid taking the card from the bank where you have savings account and deposits. In certain circumstances bank will forfeit your deposits against the credit card dues. In any case, avoid linking your credit card to the bank account.
Avoid giving any kind of standing instructions on your card - like some magazine subscriptions etc. Many a time bank will keep extending that without your knowledge or charge something extra on some pretext.
In general avoid any EMI schemes. If possible negotiate with the merchant for a better deal for the full payment. In case you opt for an EMI scheme, insist to see all the terms and conditions, advance payments, termination of scheme etc.
Avoid any cash transaction on the card, unless you get to profit more than the transaction fee+taxes.
Be prompt or early in payment. If you are going out of station, make concrete arrangements.
Use on trusted sites only on the internet. Avoid using at the sites which blindly collect the Credit card info. In any case look for the secure transaction.
Ask for free card for Spouse.
Be careful about the credit limit. More credit limit means more risks for the cardholder in case of misuse.
Avoid giving Xerox of Credit Card as identity proof.
Look for the card which provide statements on internet. Then you can check your account for any surprises and take timely action. Watch the available credit limit and tally with your purchases. if you suspect something, ask the bank to clarify.
(Like in EMI schemes Bank will block your credit limit for the whole amount)
In general, remember ’Prevention is better than the Cure’. Be ready for a rainy day when bank will succeed in stepping on your tows.
I will update it as I get few more points. I must admit that every passing day with the credit card usage is a new experience in itself.