Five important facts everyone should know about credit cards

India Infoline News Service | Mumbai | November 25, 2015 11:22 IST

In today’s economies, credit cards are essential to meet your expenditures in a convenient way within your cash flow cycles.

Credit cards are a convenient and a reliable way to manage your finances. In today’s economies credit cards are essential to meet your expenditures in a convenient way within your cash flow cycles. However credit cards have been riddled with myths and causing distrust. Below are 5 important facts about credit cards everyone should know.

Do more cards, translate to a better credit rating?
Your credit rating is not pegged on how many cards you hold simultaneously.  When you hold more cards you increase chances to default in some repayments. This has an adverse impact on your credit rating

There is no Grace period
Grace period is the number of days (in most cases 30 days) you have to pay in full before interest accrues.

Making Incomplete or Late Payments will not Attract a Charge
Credit card companies make their incomes from interests levied, fees and penalties.  Any late or incomplete payment will attract an interest and penalty.

Will You Pay a Charge if You do not Use the Card
With every use of your card, you are running on borrowed money which attracts an interest charge. You should target to make at least the minimum requested payment, and carry the remainder over to the next month though this is charged. Interest will be added to the balance.

Higher Credit Card Limits are not Good
A high credit card limit is given to customers who are prudent in making payments and meet their obligations. This may translate to a better credit score, thus an advantage rather than a disadvantage.

Eventually we learn: always pay on time, avoid having too many cards do not shy from having higher credit limits. The credit card can be beneficial if you know these facts and use it wisely.

Optimum Use Of Organ Transplant Insurance Cover
Although there is significant variability in costs across organ transplantation programs, most of the procedures are expensive. Because of their exorbitant cost, it has become an absolute necessity to get an organ transplant insurance cover. Most of the private and public insurers today offer cover on organ transplant procedures as part of regular insurance policy. At the same time, they also cover organ donors’ costs.

Exorbitant costs
While awareness of organ transplant surgeries is increasing in India, knowledge of insurance coverage for these organ transplant procedures may not be as eminent. As per insurance aggregator Coverfox.com, the liver transplant surgeries cost could range from Rs 24 lakh to Rs 28 lakh, while a kidney transplant surgery could result in an outgo of Rs 4 lakh to Rs 8 lakh. Having an adequate health insurance cover can take care of the surgeries cost without having donors and recipients to worry about their finances.

The scope of coverage
Before taking any cover, it is important to know the basics to make the best use of health insurance cover. Any organ transplant surgery involves two people having to undertake surgeries - the donor and the insured recipient. All hospitalization expenses including pre- and post-hospitalization, surgical, and medical incurred by the recipient are reimbursed by the insurer.

Also, expenses incurred on storage of organ and surgery of donor is covered. The expenses of the surgery of the recipient are mostly fully reimbursed; however, expenses related to donor’s surgery vary from insurer to insurer. In most of the cases, the hospitalization expenses for the organ-donor are borne by the insurer to a specified limit. Donors cannot avail individual health policy to cover hospitalization expenses. Thus, the insured recipient, more often than not, bears the expenses.
 

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