Today, various payment institutions offer to use bank cards, this is a convenient alternative to cash. But there are different cards: debit, credit and overdraft. It is necessary to understand the differences.
Debit cards
These are cards that allow you to manage your own funds. The account contains money deposited by the owner himself, his employer or any other person. You can use only the amount that is present in the account. Registration of this card is the simplest, you just need to contact the bank and provide a passport.
It is debit cards that are usually issued to receive wages, pensions or other payments. For savings needs, this form is optimal, but the interest on the current account is usually lower than on the savings account. You need to find out the peculiarities of accumulation at the bank branch, where you will be offered complete information.
Credit card
The owner's account contains only the bank's money, which can be used for their own needs, and then repay the loan. The amount on the credit card can be different, it depends on the owner's ability to pay. You can withdraw all or part of the provided money. At the same time, it is necessary to return them later with interest. In some banks, there is a percentage not only for using, but also for withdrawing cash.
To apply for a credit card, at least 2 documents are required, and often also a certificate of income. The amount of a possible loan will depend on the package of documents. Remember that many credit cards have a grace period during which you can pay off the used amount without interest, but if you do not make it in time, the amount of payment will increase monthly over time.
Overdraft card
This is an option that combines the capabilities of a credit and debit card. The account may contain the owner's personal funds, and it is also possible to take a certain amount from the bank. If you don't have enough money to buy your own money, part of it is paid from the loan provided. Interest is charged on borrowed finances, and they must be returned in accordance with the contract.
Usually, on overdraft cards, it is possible to take out a loan for an amount not overwhelming 200% of monthly income. This is very convenient, since it is difficult to get into big debts, but at the same time, if necessary, you can not go to the bank for loan approval, but immediately use the service. To issue a card, at least 2 documents are required, but more often such opportunities are given to those who transfer salaries to a bank card. The institution sees all income, can assess the client's solvency and provide him with the best credit conditions.
