In How I make my card work for me, we asked readers whether they would choose to live with or without a credit card.
While one reader vociferously voted against a credit card in How a credit card can ruin you financially, here is what some of our other readers have to say.
Going by their experiences, if you play your cards right, you can surely get more out of your credit card than just plain convenience.
1. Use the reward points to get gifts
I have been using a Standard Chartered Mastercard for the past 10 years.
Till date, I accumulated points that enabled me to buy a Nokia cell phone, a musical instrument and a pair of sneakers.
- K Chandrasekhar
2. Check out deals on co-branded cards
I am a Non-Resident Indian based in the UAE. I have a co-branded Citibank and Emirates Airlines card. Whenever I spend an amount equal to $1, I get one skyward mile (Emirates Frequent Flyer) credited to my account.
By using the card for my regular household expenses, I accumulated sufficient points over three years to get me three return tickets from Dubai to Mumbai and Dubai to Delhi. If I had to pay for this, it would have set me back by Rs 60,000 at least.
In addition, I have the option to sell these tickets to anybody.
Isn't that a great way to make my credit card earn (not work) for me?
- Sanjay
3. Use it as an emergency tool
I used to own a card as a status symbol but soon realised its value.
Around eight months ago, my flat mate met with a bike accident at around 10 pm and was badly injured.
Fortunately, the person riding with him was not hurt too badly. He managed to take him to the nearest hospital and called me.
When I reached hospital, I was told my flat mate's jaw was fractured and he had to be treated immediately. None of us had the money for the hospital deposit.
I used my card to pay for all the hospital expenses for the next three days, by which time his parents arrived from his home town in Madhya Pradesh (we live in Bangalore).
After this incident, I chose not to live without a card.
- Amit Agrawal
4. Avoid tapping your savings
I work in Tamil Nadu but my family lives in Kolkata. I used to keep a tidy amount in my savings account to be able to buy an air ticket in case of a family emergency.
Now, I put all my money in a fixed deposit. If I have to rush back, I will buy my tickets on my credit card and pay the bill when the statement is given to me.
By then, I would either have my salary credited to my account or I would just have to break a portion of the fixed deposit (not the entire amount).
This way, I do not touch my savings unnecessarily and the money earns a fixed deposit rate of interest (as opposed to a savings account rate of interest). I also earn reward points on my card.
Ditto when I travel on office work. I make all payments on my card, produce the bills at my office, get reimbursed and put the money in my bank. When the statement comes, I make the payment.
This way, I don't have the bother of using my own money.
Instead, I earn reward points without spending my money.
- A.K.Ganguli
5. Take what you get
I am sold out on credit cards!
I deliberately own a number of them. The advantage is that each card has its own promotional offers and schemes which I use to the hilt.
For instance, one card will get me a discount at a restaurant while another, a discount at a book store.
I once used my HDFC card to get a 10% discount at a restaurant, as well as a music cassette and a chance to win in a lucky draw. All at no additional cost to me.
Over the years, I have been accumulating points on my Citibank Visa card. I get one point for every Rs 100 spent and get a gift when I accumulate a certain number.
I used the co-branded cards -- Citibank Petro Card and ICICI Petro Card -- to fill up my car at no extra cost. Other cards levy a surcharge if you use them at petrol pumps.
And, of course, the cards are very handy during emergencies.
Once, I needed to buy air tickets for my parents. I used the credit card and did not have to bother about payment till the bill came. Neither did I have to touch my savings till then.
The card came in most handy when my father was admitted into hospital in Vellore while I was in Mumbai. Fortunately, I had given my dad an add-on card.
- Sunil Durga
