Credit Card
Some tips on how to manage your credit card
A credit card is a useful tool, when managed judiciously but a lurking danger if you mismanage it. Currently, threatened by the global financial crisis banks are changing credit limits, doing away with interest free periods and charging higher interest rates on the credit borrowed. One of the first things you need to keep in mind, is read the term and conditions when you apply for a credit card. It could be a laborious process but something that has to be dealt with, to protect yourself from any rude surprises that might be in store for you in times like this.
One hears stories of money being taken from the savings account of a person who has a credit card with that particular bank! Well, banks are allowed to do so, when a default occurs, the clause is covered in the terms and conditions. Banks also have an auto debit facility to claim a minimum payment on credit borrowed, if in case your account does not have enough funds, banks are allowed to levy a fine, which could be ridiculous amount that is nearly half the amount you borrowed! For eg.
Personal loan lender HSBC to go slow on retail and credit card division
The oldest personal loan lender in the country, HSBC has opted to slow down its retail and credit card divisions as it plans to concentrate more on global banking, investment banking, wealth management, insurance and mortgages.
Naina Lal Kidwai, HSBC India Group GM and Country Head said, “We will not chase retail customers till we turnaround our loss-making retail lending and credit cards businesses. We hope to do so by the end of the year”.
The bank has lately taken over the retail banking division of Royal Bank of Scotland.
Kidwai said, “HSBC won’t go after customers to sell our retail banking or credit card products as that will impact the quality of our services, besides increasing our risk portfolio”.
On the subject if the bank intends to quit from credit card division, Kidwai said, “There is no such plan, but we will not be running after customers to sell a credit card or a personal loan. There is no pla