Personally speaking credit cards is something I lived with for most part of my life. Till it became embarrassing not to have one. I needed it for travelling, ticketing on the net, etc. so I got one.

There are many ways how a person can use his credit card sensibly. As far as I can see it, the following makes sense. I have a friend who has almost a nil balance in his savings account. He uses his credit card extensively and on the due date issues a cheque – and the money flows from his Liquid Mutual fund. This I think is excellent but not my style. To me moving money from a LF to SB in time to pay bills is a lil too much of an effort.

I have 2 credit cards. One from I bank and the other from H bank. I bank thought it worthwhile to give me a limit of Rs. 47,000 and H bank thought it worthwhile to give me a limit of Rs. 5 L.

Largely i pay for my petrol, telephone, travel, hotel, grocery, vegetables, books etc. on my ‘I’ bank credit card. On the due date (actually 3 days before) it gets paid in full from my Savings bank account. Rarely have any purchases been made for a durable item like a music system. Of course I bank calls me regularly for converting it into an EMI – and that is amusing to say the least. This card is used really heavily for purchases of air tickets, rail tickets, E- buying of books,

The H bank credit card is used once in a while in a very secure atmosphere – to just keep it alive.

Why do I need the H bank credit card at all if I am not using it?

‘Cause it is a card that can be used in case of a medical emergencies. If a dependant is admitted in hospital (and hospitals are notorious for not admitting without payment) the easiest thing to do is to sign a blank slip and get the patient admitted. Next morning withdraw money from the bank and replace the blank charge slip…as simple as that.

So this is the way I use the credit card. I would be happy to see your comments on this whole issue of 3% p.m interest that credit card companies charge…