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This banking expert busts myths about credit cards 

An Apeejay alumnus and Area Sales Manager – Credit Card with SBI Cards lists common credit card misconceptions, the reality and more



Alumnus of Apeejay School of Management Gurpreet Singh completed his Post Graduation Diploma in Management (PGDM) with Finance and Marketing specialisation from the institute. During the last trimester of PGDM, he received a campus placement with HDFC Bank as Sales Manager – Credit Card. After working with HDFC for 4 years, he then decided to make a career move. In 2018, Gurpreet joined SBI Cards, a credit card company and payment solutions provider in India, as the Area Sales Manager – Credit Card at Gurgaon. In the last 10 years of his professional journey, the Apeejay alumnus has worked at different locations and managed different territories including Delhi, Gurgaon, Rewari, Sonipat, etc. Read edited excerpts of his interview to understand more about the trends in the banking sector as well as bust your misconceptions about credit cards and credit scores:

What inspired you to choose this field?

After completing my BBA from IP University, I joined as Sales Executive in the year 2012. I worked with for one year and spoke to numerous professionals from different locations/domains/fields and so on. It helped me to understand different job roles and I decided to make sales my career for quick growth and higher income in a short duration. 

How did Apeejay School of Management help in shaping your career?

I joined Apeejay School of Management in 2013 and started grooming myself on different corporate and business aspects. I joined the Corporate Resource Centre and visited multiple corporate offices in Delhi and Gurgaon to invite companies for internships/full-time job roles. During 2 years of my PGDM programme, I took up many group tasks, activities, marketing projects, role plays, business plans, etc. This helped me a lot to overcome my fears, become extroverted and conquer my dreams.

The banking sector witnessed a drastic change when COVID hit. Currently, what are the emerging banking trends that are here to stay for long?

Yes, the banking and financial sector has been one of the most affected when the Covid-19 pandemic hit, with bank valuations dropping in all countries around the world. However, banks have responded to the pandemic and implications for the future:

1. COVID-19 crisis has forced banks and their customers to use digital tools and processes to compensate for branch, office, and call center closures.

2. Banks face the difficult task of balancing the traditional approach to risk management with the need to respond quickly to a crisis that has created massive changes to their operating environment. Criminal cyber activity, including fraud and phishing attacks, has increased as more employees work remotely.

3. As the economic impacts of the pandemic become clearer, banks are updating risk models and stress scenarios in an attempt to stay ahead of the curve. However, uncertainty in the operating environment continues to pose challenges.

Three credit card misconceptions versus the reality

Misconception 1: A new credit card affects my credit score

Reality: Applying for new credit results in a ‘hard credit inquiry’ by the service provider. Too many applications may have a significant effect on your credit score, but a single inquiry is unlikely to affect your score by more than a few points.

Misconception 2: Paying only the minimum balance is fine

Reality: The minimum payment is the amount that you need to pay to avoid any late payment charges. While some people don’t have the funds to pay their full credit card balance each month, others only pay the minimum because they believe that’s all they need to pay to avoid interest charges. Only paying the minimum amount due is the worst financial mistake. You should always try to pay the Total Amount Due. If you don’t, you will have to pay interest charges, which may increase your credit card debt by a significant amount each month and each year.

Misconception 3: Having a high credit card limit is not effective

Reality: If you manage your credit cards wisely, a high credit limit can be beneficial. 30% of your credit score is based on your debt-to-credit ratio. The debt-to-credit ratio is the amount you owe in proportion to your total credit limit. If you have a high credit limit and keep your balances low, your debt-to-credit ratio is also low, which may boost your credit score.

Harshita is Assistant Editor at Apeejay newsroom. With experience in both the Media and Public Relations (PR) world, she has worked with Careers360, India Today and Value360 Communications. A learner by nature, she is a foodie, traveller and believes in having a healthy work-life balance.