Plastic bank cards, debit and credit, have already become commonplace and even retirees are actively using them. Many banks, with which you start to cooperate by opening an account or taking out a loan, immediately offer to issue a credit plastic card, which is quite capable of replacing a wallet full of money. But how profitable is it to use a credit card?
What is a credit card
Bank plastic cards, with which you can carry out non-cash payments, are debit and credit. A debit card is linked to your current account with this bank, and the amount of money that you can spend with it is equal to the amount that is currently in your account.
A credit card is a bank offer, an amount that he is not afraid to lend to you. If this is the first time you apply to the bank, wanting to issue a credit card in order to receive it, you must not only write an application, but also provide some minimum information about your financial capabilities. If you already have a bank account or a loan in it, the bank has an idea of how solvent you are, and the initiative to issue such a card comes from it. Each card has its own credit limit, beyond which you cannot spend money. It should be borne in mind that the interest for using funds on such a card is much higher than those that the bank will offer you if you apply for a regular loan for the same amount.
When issuing a credit card, carefully study all the terms of its use. They may differ from bank to bank.
How to use a credit card correctly
Nowadays, many credit cards from various banks have a grace period. This means that you can use money within the credit limit, making non-cash payments and not paying interest for a certain period. If, before it expires, you return the money to the card, no deductions will be made from you. In the event that you did not have time to return this amount or part of it, interest will be charged on the balance of the debt, and you will need to extinguish it by paying the minimum monthly amount. You can pay off the debt in large payments, but interest on its balance will still be charged.
Banks are currently prohibited from sending credit cards by mail to attract potential borrowers, but they force this service over the internet. If you do not need money on credit, you should not apply for a card “just in case”.
Of course, there is no point in paying with a credit card in a cafeteria or in a grocery store, but spending money on large purchases, the cost of which you can reimburse to the card within two months, is the best option for using it. Only in this case you will be able to borrow money from the bank for free for your own benefit, without paying the bank extortionate interest.
