Originally Posted by smita
Thanks for response. I have closed all the outstanding dues. Please suggest how I can use credit card fruitfully.
Get two credit cards.
1. One with a very low limit
which you can use on a daily basis in physical point of sale e.g. shops, mall etc.
For this icici is good, as they are thrifty in giving credit limit. Try to get a life time free credit card. Or you can ask whichever bank you have savings or salary account. Don't go beyond 5 digits for credit limit on this card.
2. Another with as much high a limit as possible
. Lock it in a safe place at home. Most importantly don't carry daily in wallet. You can use it for online buying at safe sites, or when you have planned for a big ticket purchase.
Why high limit ? So that you can use it during emergency situation e.g. for emergency hospitalization, emergency situation in abroad trip, swipe at hotel in foreign country for credit authorization, online big payment say for college fees or emigration payment etc.
Citibank usually gives a very high credit limit. Haven't encountered a situation where it was declined. I have opted for citibank rewards card which is free for first year and depending on usage, i thinks its 35k pa the next years charges are waived. Best part is that the points earned can be used to buy amazon gift card. I shop a lot on amazon
Most Important - Always pay as soon as the bill is generated. Opt for online bill via email. Set up a monthly reminder calendar entry in say google calendar
If you apply using this link I will get referral
Whatever you decide don't get a card which has non waived fixed annual charges unless you know that you will earn much more points/money using that card than the fees charged.