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].