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POSTED BY ON March 1, 2013 4:54 pm COMMENTS (5)
Dear Sir,
Today I received a mail from Credit Card saying 3 month interest free payment holiday for retail transactions from Feb’13 statement. And also giving one illustration, I have to pay only EMIs(if any) and no need to pay retail transactions upto May’13. That means in may-13, I will pay three months due amount at a time.
But I have a doubt, there may be any hidden or undisclosed charges. Otherwise what is the benefit for the Bank?
Is any one of this blog users come across above situation? Is it reliable? Please let me know.
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Dear Uday, thanks for sharing your experience. Not everyone is as disciplined as you are, hence I answered a common thing. 🙂
thanks
Ashal
Dear Siva,
There are no hidden charges at all, and absolutely no traps. I have enjoyed 2 months Payment Holiday on my HDFC credit card more than twice. Again, most of the times you get more rewards points during this period.
Yes, there are chances that you could be tempted to use the card for higher payments. But this can also happen when there is no Payment Holiday. Because your credit limit remains the same whether you are in Payment Holiday period or not.
So far discipline is concerned, there is an easy way to enjoy Payment Holiday without disturbing the discipline. I did so during my last payment holidays. I was offered payment holiday for Jan & Feb 2013 i.e. Jan & Feb dues were to be paid along with Mar bill. My Jan bill was about Rs. 37,000/- & Feb bill was 22,000/-, I did FDs on respective payment dues dates which will mature on 23rd Mar.
FD of Rs. 23,800/- on 23rd Jan (day I had to pay if no holiday was there) for 60 days
and FD of Rs. 18,500/- on 23rd Feb for 30 days.
On 23rd March, I paid full dues, no charges at all, my discipline isn’t disturbed plus I earned interest.
Yesterday only I received letter from HDFC that offers payments holiday for Mar & Apr 2014, and I am going to take benefit of that. I guess you should use this facility in future!
Uday.
Dear Mr. Prasad,
You could be tempted to use the card for a higher transaction and the bank will benefit from the high interest charged on them. The best option is to use the card only of you have a genuine need.
Regards,
Credexpert
Hi Ashal,
Yes Ashal. Eventhough there is a benefit, we should not use this, as it may disturb our discipline. Thanks for your views.
Thank You
Dear Siva, the credit card in question is from HDFC Bank. I also get the same offer in Sept Oct 2012 but happily ignore the same. Same ‘ll be my advise to you. please do not get lured into such honey traps from where you ‘ll find it tough to return back to normal life. Still if you want more clarification for any minor chance of attractiveness in your mind, please contact customer care of hDFC Bank Credit card & act on the basis of clarifications given to you there.
Thanks
Ashal