The world of plastic money - your checklist before you enter
Very often than not you would come across an advertisement declaring a cash back scheme on some of the credit cards. In most cases the financers offering such schemes are reputed market players with a huge trail of expertise in the cash back credit card business. And yes they are also very good in bundling of the products. The interest rates are always higher than the money market rates and have a very positive correlation between them. The cash back schemes come with a lot of terms and conditions attached to them. It would be prudent to take a look on them before you go on to plan your personal finances for the upcoming months. Taking help from a personal finance blog can also be useful.
Ownership of credit card is definitely a good option at your disposal but always be very sure of what you are getting into. Apart from doing a pre investigation on the market rates of competitors you should always have a checklist of the following things:
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Card acceptability / popularity
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Balance transfer rates
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Yearly subscription fees
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Any one time charges
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Regular charges associated with late payments
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Interest rates / fixed charges for withdrawal of cash
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Interest day calculation for late payments
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Loss of card / Theft / Fraud insurance
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Dispute / Grievances redressal processes
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Foreclosure processes
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Payment options / processes
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Sharing of personal data clause
