How To Be Careful With Credit Cards? By Loan Singh

Credit Cards can be tempting to use

Credit cards have certainly come a long way since replacing a bundle of currency notes in a wallet. Yet, there are always complaints from customers as to why they are charged excessive fees.

Although the ‘Terms and Conditions’ for credit card usage are mentioned on bank websites, there is still confusion.


What are Credit Cards and how they work?

The owner of a credit card is able to use a bank’s money instead of his own to pay for most services. It’s quite similar to taking a loan, but at a huge rate of interest. The owner then repays the bank along with interest, quite similar to repaying a loan. That frees up ones’ own money for other expenses. However, not being able to re-pay the credit to the bank can impact one’s finances and financial history.

While paying for a service or product the card is used by a merchant to validate the account through the bank. Merchants pay a fee to the bank whenever a credit card transaction is done. If the transaction goes through, the bank receives part of the transaction as revenue.

The bank then accumulates the credit card purchases and sends a bill to the credit card owner at the end of each month. The owner has to pay the credit amount accumulated throughout the month along with interest to the bank.

Things to remember!

Credit Card fees

There are several fees that a credit card typically charges. The ones that you should keep track of include:

  1. There is also a charge debited when you use a credit card at an ATM.
  2. If you default in clearing the payments by the due date, a penalty is charged for this plus service tax for the entire amount.

Payment due dates:

There always is a pre-determined due date fixed for payment clearances. Get to know this date and ensure you pay before or on that date to avoid late payment penalties…

Lost credit card

Don’t assume that the card provider will bear the losses if your card is lost or stolen. The credit card provider does have responsibility but only once you report the loss or theft. So between a theft and reporting the theft, you have to bear the expenses for any payments occurring during this period.

Credit card usage history

It is very important to maintain a good card history with the bank or card provider. This means you need to be regular in clearing your payments. CIBIL – which prepares a Credit Score for banks to provide loans, gives you a poor score in case you are a regular defaulter.


Try Loan Singh instead!

As you can see, its complicated using a credit card…

Loan Singh’s personal loan process is completely online and you can apply directly on

Loan Singh does not look at your credit card history or any past financial history.

Loan Singh’s Digital Lending Platform introduces lenders and borrowers to each other. Credit-worthy borrowers are selected with the help of our ‘Seynse Score’. Borrower profiles are shared with Lenders and they decide who they would like to lend to. It is easily the best Digital Lending solution for low interest rate loans with no CIBIL score check.

Loan Singh helps you solve your financial needs. Call us on 18008435353 or drop an email to

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