Obtaining a Credit Card

Being hit by banks for credit cards , I would may advise you to use a pre-paid master cards such such Refill cards from NBB. I have cancelled my credit cards for be g charged 1129 BHD for Apple Store purchase once in my life as I was under the assumption the bank to auto duct from my account on money basis which they didn't and got accumulated. I hate them.

If used wisely, credit cards are really helpful. For example, with my credit card, I get unlimited airport lounge access for myself and a guest at (almost) all airports in the world. I also get a BOGO (Buy one, get one) promotion on movie tickets and beverages at Costa Coffee. I also get 4 air miles for every 3 BD spent. The entire family just made a trip on the air miles we had accumulated. This, without paying a single fil for the annual fee.

Interest is charged on a credit card only if you don't clear the dues by the specified date. If you regularly clear your dues, you are not charged anything extra. Usually, all credit card companies provide you 50 days of credit period. If you plan your major purchases according to your billing cycle, you get 50 days of free credit.

Ask the bank where you have a salary account about their credit card offers.

I agree that credit cards can be helpful if you use them in a manageable way.  I use mine for groceries because spending on food gets me free travel over time - I pay it off immediately so I do not have to worry about interest as stated above.  It is also a handy item to have in case of emergencies as you can get cash of you are in real need.

You can check online for credit cards, but if you have never used one I would advise finding someone at your bank who can help you find a reputable and safe deal for yourself.  BISB is what a few people at my work use - any reputable bank will have a credit card available.

Good luck!

Having a Credit card has its pros and cons.  Just a note when i applied for a credit card there was a clause that 3 months salary had to be credited to your account only then a credit card will be issued. You could call your bank where your salary gets transferred to and speak to them for more info.

Thankk you everyone, some very helpful advice there

One thing that you could explain to me if you don't mind.

E.g I buy a used car using the credit card at BD1000 on the 1st of January, then when my salary comes in on the 28th of January I then pay all of the BD1000. Will I be charged anything for using the card? A standard charge and/or a percentage per month?

logicalindian when you say "Just a note when i applied for a credit card there was a clause that 3 months salary had to be credited to your account"
Do you mean that they will not let you get a credit card unless your current account with them has had 3 months of salary payed in?

Hi,

Here is an example, in my case my billing date is 20th of every month. So if i buy something today, it gets billed on 20th of this month and i have until Feb 10th to pay it off. If i don't pay by Feb 10th then there is a late payment fees+interest (depends on the bank).

Another example, if you buy anything on 21st of this month, then you get billed for it on Feb 20th and your payment due date will be March 10th.

Yes, as per my knowledge most of the banks require min 3 moths of salary transfer before they can issue a credit card, if you can speak to your bank they could clarify this point.

T&R

logicalindian wrote:

Hi,

Here is an example, in my case my billing date is 20th of every month. So if i buy something today, it gets billed on 20th of this month and i have until Feb 10th to pay it off. If i don't pay by Feb 10th then there is a late payment fees+interest (depends on the bank).

T&R

So if you spent 1000BD today you will receive a bill on the 20th, you then have to pay 1000BD before the 10th Feb? otherwise there will be charges added on.

Yes, that is correct.

I know I'm asking very simple questions I just want to make sure I fully understand how they work and I found I struggle to fully understand the people at bank over the phone. Thank you for your patience and the helpful advice

Credit cards are tricky even if you have had one for a while, so no need to apologize for asking these questions. 

You can always change your billing date as well, so you can pay bills on a certain date and have the most amount of time to pay them off without getting an interest charge, or set it up so your paycheck arrives right before any payment would be due.

It is a good topic and I am sure people are benefiting from your questions, and when you speak to your bank you will be more informed to make the right decision.

*edited for 7am drowsy double-posting

hope your clear now!