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Topic : Credit , debit and common man
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Credit Risk Management

 
Created by : Ganesan S, Client Servicing/Key Account Manager, Citibank  | 12 15 2008 12:24:48 +0000
Industry : BankingFunctional Area : India(Markets)
Activity:  737 views;  last activity : 05 27 2011 12:06:56 +0000

Consider you are going out with your family or friends and planning to shop for tv,mobile, refrigerator, ps3, mobile or any other commodity or services . Then how would you like to pay for it ??

Cash or credit card ? and Why?

Well my intension of asking this is to find out whether people prefer using credit card or cash for the transaction they do. What benefit do they have.

I guess you all might have used one of the credit cards.

Cash or Credit Card ?? Which one do you prefer ? Why ?

 
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Cash Vs Credit Card
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Cash is safer because of the risk involved in using the credit card.

It takes just few seconds to note down the details of your credit card which can used for free shopping. Do you wan to pay for what is not yours ??? I don't think you want to. 


By Mohit Sethi, Account Manager, ABN Amro  12 15 2008 12:34:27 +0000
 
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I would pay using credit card, I am always happy to get 45 days + of grace ( interest free ) period for the product, commodity or services I received. I have never faced any problem such as Mr.Ganesan has faced. I guess Ganesan you might have missed the due date for the payment.

Also do you always card loads of money with you when you go for shopping?

How will you know what you are going to purchase in next 5min ?

If one doesn't know what can happen in next 2 sec, how will he/she know how much he needs to carry ??

So its better to have credit card....


By Rahul Gautam, Client Servicing/Key Account Manager, HDFC Bank  12 15 2008 12:30:54 +0000
Arguments in: "Cash or Credit Card"
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No Worries of Hidden Charges, Late Fee, Tension free life over all. Don't need Swipe Machine, Accepted everywhere. No More Tele-marketing calls
By Ijas Rahman, Security Penetration Tester, Appin Knowledge Solutions  | 05 27 2011 12:06:54 +0000
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Obviously as who is going to bear the pain and stress of those 45 days and I've personally encountered some gruesome and awkward situations where my friends have lost a big amount in due course as the extra service charge and certain hidden charges
By Ardhendu Pal, Upgrading Knowledge Base, Researching in Computer Software/Hardware  | 05 20 2011 12:41:47 +0000
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Payments once made/initiated cannot be revoked / stopped; also, the amount of the payment cannot be updated / modified. This can lead to wrong credits to undesired people
• Since the medium is electronic, technical snags in the system may prevent smooth functioning of the same, which may be irritating in urgent situations
• Availability of the required infrastructure (computer, Internet) is essential to bring about such kind of transactions, which cannot be easily available if a person is traveling
• Antisocial elements on the Internet like hackers, phishers, fraudsters, etc may gain access to the system, which can be disastrous to the success of such a system. Security is a key concern for success of online transactions.

Using cash for household necessities requires families to create a budget and follow it. Budgets help track all cash inflows and outflows, which can help all involved to locate potential savings.aying with cash is better because less money is generally spent and no interest is incurred on purchases. Budgeting for expenses can also increase individual productivity, with individuals finding more or better ways to earn cash rather than use debt.


By Nikhil , Senior Manager, Insurance  | 07 05 2010 07:48:20 +0000
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obviously in cash.why should i pay extra as  interest amount?Credit card is being served as emergency purpose.


By roumi chatterjee, asst commercial executive, century plyboard india ltd  | 12 23 2009 12:24:30 +0000
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Interest rates on outstanding is quoted at 3.99% per month against the RBI guidelines which requires the rate be quoted in Annualised rates.


http://www.banknetindia.com/banking/creditcardnov05.htm

b. Card issuers should quote annualized percentage rates (APR) on card products (separately for retail purchase and for cash advance, if different). The method of calculation of APR should be given with a couple of examples for better comprehension.


By Prasad PN, Consultant, Trainer  | 11 17 2009 17:06:15 +0000
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RBI has given a clear guideline to all credit card companies to provide the interest and late fee calculation example to all card holders. There was no response when I asked my credit card provider to supply me with the sample calculations as per RBI guidelines and I am yet to receive one.


By Prasad PN, Consultant, Trainer  | 11 17 2009 17:03:14 +0000
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The credit card has the following risks

1. You tend to buy more than what you want

2. Risk of card details being stolen including CVV number

3. For just missing the payment by due date you are levied about 40% interest and another late fee of about Rs 350 (why this is when interest is levied 3 times the bank rate?). Under what laws RBI permits such exhorbitant interest and unreasonable late fees. Sometimes we end up paying 60% penalty for a simple delay on outstanding as low as Rs 1000/-

4. Most people get tempted by a very low payment option instead of full payment and many do not understand once this choice is exercised your account becomes Overdraft account and all current month purchases will also attract 40% interest without any grace period. This is the biggest trap everyone falls without understanding the implications.


By Prasad PN, Consultant, Trainer  | 11 17 2009 17:00:15 +0000
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i prefer cash, there is so much misuse of credit cards these days and then the other reason behind cash is one would keep a check on his spending, if he has money enough to buy a product which is more than enough for him, but then with the credit card , at times one can't keep a check on his spending and will splurge more than he intended to do, and this will lead to problem in future....


By Pankaj Gautam, Client Servicing/Key Account Manager, ICICI Bank  | 01 30 2009 08:14:12 +0000
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I would like to put light on "what if you lose your credit card?".

You lose what you didn't have. Money.


By Dharmesh Panchal, Client Servicing/Key Account Manager, Royal Bank of Scotland  | 12 15 2008 12:38:09 +0000
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I would pay using cash rather than credit card because I don't want to take any risk with credit cards, they charge financial charges without any reason and I don't wan to face that situation dealing or calling customer care again and again to rectify the error.
By Ganesan S, Client Servicing/Key Account Manager, Citibank  | 12 15 2008 12:24:48 +0000
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I am using Credit card for quite long and am quite convinced that its certainly abetter option than cash. Its proper use (NOT MISUSE) will always be beneficial for the customers. THe free cedit period, bonus loyalty points and overall the ease of use (not carrying cash, thereby preserving national resources) are only some of its benefits. Yes every body shud use it carefully and always pay before due dates.


By Kundan Jyoti, Chief Manager , SCB Dakbunglow Road, Patna  | 01 25 2010 16:36:46 +0000
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With proper planning credit card can be used.  or the combination of cash and credit card.  It all depends on financial planning and other expenses on hand.


By malladi madhukumar, AGM -MKTG, Andhra Cements Ltd  | 12 29 2009 14:32:46 +0000
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If it is a legal deal, credit cards are much safer provided one observes the security norms.


By Biranchi Narayan Acharya, Senior Project Manager, Simplex Infrastructures Ltd  | 10 29 2009 11:14:44 +0000
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Salaried people would normally go in for credit card while SENP would normally go in for cash !!!

Don't think need to explain in detail. Those in the banking industry would understand what I mean !!!


By Vivek Bimbrahw, SBU/Profit Center Head, ICICI SECURITIES LTD  | 10 27 2009 07:11:07 +0000
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It gives u an extra ease to hold your cash for a longer time and also the reward programmes that the issuers proposes are attractive (provided you use the CCs smartly)


By Sumit Jain, Assistant Manager - Corporate Sales,Key Account Manager, Bennett, Coleman & Co. (The Times Of India Group)  | 09 02 2009 05:21:50 +0000
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CASH IS THE KING for for small tickets like buying cigrette, peanuts from road side vendor...

Credit card can be used for big tickets like 1000Rs and above as well as merchants like dept. stores or big shop owners whose daily turn over is better and end customer are well versed with credit card use e.g. apprel shops, hotels etc. It is better then using those PRE PAID Ticket REsurant or SODEXO pass :-)

 


By Hitesh Thakkar, Project Manager, Sun Microsystems India  | 01 30 2009 08:00:28 +0000
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I prefer credit card

If u use it in proper way it is safer and easier and quicker


By Bellala Gopinatha Rao, Project Manager Promax Management Consultants  | 01 02 2009 12:54:57 +0000
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