I see that you are the owner of more than one credit card, so let us put things into perspective: you are not a victim, but a volunteer. If you get into a situation once, yes, you are a victim, but repeat it and you become a volunteer.

Phoning and talking to various bank representatives is a waste of time. Save yourself some time and get down to the concerned bank for a faceto-face.Take along your entire credit card-related correspondence, assuming you still have these.

According to bank representatives, the renewal of your credit card is automatic. The onus lies on you to cancel this card if you do not wish to use the facility. In the absence of written communication and not a word on the telephone with a bank representative, the annual fees, charges for any kind of insurances that you may have eagerly checked out on the original application and late payment fees will be charged.

It is no use complaining as you will be subjected to mindless platitudes.

Take responsibility for your oversight and get out of this mess as soon as possible.

Have a face-to face talk with the most knowledgeable credit card bank representative available. Do not settle for the counter staff - they are just as ignorant as you on the complexities of the issue. Besides, the person with the fancy desk and the higher salary knows what to do.

I have received many phone calls to upgrade my " credit card, as I have been pre-approved for a higher limit, with some extra goodies thrown " in. It makes me feel good but I am hesitant to upgrade. Any pointers on what I should check before I decide.

Letters, phone calls telling you that you have been approved for a higher limit, extra bonus points, air miles and access to the VIP lounge at the airport are ploys. Although attractive, you have to use your card a lot more to get them. This can become a trap: buy more to save more.

It is great that you are preapproved, but you must be able to afford it. Please resist. Credit card companies would not be after you if they did not think they were going to make money off you.

Ask yourself if you need the card for business or personal use? For business use, look for a card that offers a cashback for business purchases, upgrades at hotels and on flights. Most companies will offer a low introductory rate for a specified amount of time; find out what it jumps to when that said time has expired.

It may be more advantageous for your business if you find a long-term, more moderate interest rate than be stuck changing cards every few months to keep your interest in check.

For personal use, decide why and for what do you really need it. (This can be extremely difficult, as most will get a card for the most asinine reasons; too many to list here). If your plan is to use it instead of cash and cheques throughout the month and pay it off each month, know the grace period and the penalties happens if you miss them.

Choose a card that offers reward points even if you do not carry a monthly balance. This can be a great way to accumulate frequent flyer miles or spend dirhams as long as you are disciplined enough to use it this way.

By Sandi Saksena

© Emirates Today 2006

 

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