Safely Transacting Online

While transacting online, make sure that you are on a secure website before entering away your card details. How to make sure what is a secure website ? In your browser title bar, you should look for "https" followed by the name of the site. S - Means security in this case, which includes high level of encryption to keep your data safe while being transferred on the Internet.

Also, we should Thank RBI for having introduced an additional level of security to transact online - Verified by Visa or Master SecureCode - an additional password without which the transaction will not complete.

Once the transaction is complete, you should receive an e-mail from the online merchant, else, take a screen shot of the transaction confirmation [Saving the Web Page will not help, don't do it]

Also a online merchant should have a return policy, in case if there is a mismatch in the product promised versus delivered then they should accept it back.

Credit Card as a Finaancial Tool

The Credit Card is a Financial Tool best suited for your needs if you use it carefully and also handle intelligently.

• Credit Card should be used only in case of emergency if you have exhausted all other means. [However, financially sound folks can also use and pay off in full every month]
• What is a Balance Transfer of Credit Card ? This allows a consumer to transfer credit card balances from one card to the other. Usually when there is a differential in Interest rate charged by the banks.
• Balance Consolidation - If you have multiple credit cards with balances and finding it hard to manage, then you can consolidate the balances on only one card. But understand the terms and conditions before consolidation as defaulting here means you are in deep trouble.
• For consumers who are in bad situation when it comes to paying back the cards, they can be offered EMIs by the bank, but depends on the banker.
• Before converting your credit card balance into EMI, kindly understand the installment and tenure that this will last.

Persons managing their credit card well, who have never delayed on their payments will also get offer for Personal Loans. Never avail the same as APR will be quiet high, unless needed as Emergency. [Please, Emergency is Emergency not something like American sub-prime borrowers]

Things to do after you get a Credit Card

Here is a list of things you have to do as soon as you get your credit card,

1. Remember your credit card is an unsecurd loan offerd by the bank to be used at your convenience with a grace period for repayment [usually upto 30 days only]
2. Most banks send a Welcome Kit with your credit card. This kit has information about using the card, safety instructions, payment procedure, interest charges and terms and conditions governing the card. Please take some time to go through the same
3. Sign on the back of the card as soon as you receive it.
   
4. Interest on Credit Cards can be as high as 3% to 4% per month. This is 36% to 48% per annum
5. Kindly remember, if you do not make your payment in full by the due date, interest is charged from the date of transaction on the amount remaining unpaid after the due date.

Use your credit card wisely. We recommend that you use and pay-off your monthly bills in entirety.

Disha Financial Counselling - Review and Approach or Not To

Disha Financial Counselling was setup by ICICI Bank with pressure from the Reserve Bank of India to help and educate loan borrowers. RBI has done an excellent job persuading ICICI since the latter has a huge portfolio of retail loans most of which is sold to consumers without properly educating them about the terms and consequences on default.

We have seen so many people borrowing on their credit cards, personal loans etc for events like the wedding or some other extravaganza, just to maintain their status. Once they have defaulted, the Interest Rate on their loans and Fees shoot up and it simply becomes impossible. Now should you approach Financial Counselor like Disha ?

Disha's main purpose is to help the default customers by extending their loan period or giving them one time settlement option etc depending on the customer profile. Disha counselor discusses your income and expense profile and will patiently listen to your woes. They help you plan your lifestyle until you are out of the debt trap.

What if I am in the worst case secanrio ?
The counselleor captures every debt / loan you have from a recognized financial institution in India from CIBIL. They have standard documentation format which runs into several pages and you have to carefully read and sign it. This implies you accept you are a defaulter, this is where many fraudulent borrowers who do not have the intention to repay run away.

However, assuming you stayed and are willing to Pay what you owe to the banks, Disha will then approach all the banks who have lent you the loans asking for rescheduling and affordable terms so that you hav a second chance. Most banks take long time to reply and some initially ignored Disha. But gradually under pressure from the RBI, banks are helping customers to clear their dues and become current again.

Do let us know your experience about Disha or Abhay Financial Counselling [Setup by the Bank of India].

Tips for Safe Usage

Here are some important tips which ones MUST carefully read and also follow for their own safety.

• You must always sign at the back of your credit card as soon as it arrives
• Memorize or note down your 3 digit CVV number and blacken it on the card
• Always ensure that your credit card is swiped in your presence. 5 Star Hotels or Clubs are no excuses.
• Store your card particulars in a safe place, separate from the card so that you can access this in the event the card is stolen.
• In the event of your card being stolen, inform the card company immediately and get the card blocked.
• Subscribe to SMS Alerts, if they are offered and work at all [HDFC Bank's Alerts are useless] ICICI Bank's alert are really real time. ICICI Bank sends alerts to your mobile immediately after every transaction.
  
• When your credit card expires, cut into atleast 3 pieces such that the magnetic piece is also cut at 3 different places.

The credit card companies [including SBI, HDFC, etc] in India are functioning really below expectations and if you decide to have one, you should be extremely careful as the regulator RBI and Finance Ministry are least bothered about citizens woes.