It is considered terrible in society to live on credit, but only short-sighted people can think so. If you use both your personal savings and borrowed funds correctly, then many everyday problems are solved without wasting time and effort.
Lending is a mechanism for transferring borrowed funds to a consumer from a financial institution with the condition of returning the announced amount of debt plus interest for using the money. One of the most mobile lending options at hand is a plastic credit card. They are issued by almost all banks of the Russian Federation that provide loans to the population of the country.
Features of credit cards
The conveniences of such a lending mechanism include:
- The ability to make cashless payments for goods and services. This is especially important when goods are available at a favorable price, but there is no free cash.
- Long periods of the so-called grace period - the time to use a credit card without paying interest. This condition is valid if the entire amount of the debt is repaid within a period specified by the bank. Usually, the grace period for crediting, which is offered by bank structures on a credit card, ranges from 50 to 60 calendar days. This is very convenient when a large receipt of money is expected during this period and you can plan expenses so as not to pay the interest rate at the end of the grace period.
- Various levels of service for credit cards, depending on the category of customers, their solvency, reliability and financial condition. Banks offer both budget credit card options, when you just need to intercept before paycheck, and elite gold credit cards. Almost all shopping centers, medical institutions, the service and entertainment sector serve their customers via cashless payment terminals. Therefore, in a force majeure situation with money, you can not only buy food, pay utility bills or cure a tooth at a paid dentist by paying bills by credit card, but also not deny yourself the usual level of income.
- Making purchases with a credit card is beneficial with the partners of the creditor bank. This is due to the system of returning a certain percentage of the value of the goods to the buyer's account if he pays for the purchase with the card of a partner bank. This mechanism is called "cashback" from the English Cash Back. Some banks offer up to a 10% refund to the buyer's account. This is very beneficial when making a large, long-term purchase. Especially during the grace period.
- A credit card becomes for the holder a guarantee of a certain amount for a "rainy" day, when sudden unplanned expenses are required. Rather than going to friends to borrow money, it is better to have in stock such an option as an unactivated credit card with a certain limit of funds.
- Many credit cards are beneficial for those who often use the services of transport companies, buy tickets for air travel or rail transport. The owner of the credit card is credited with bonuses in the form of "miles", which later can be used to pay when buying tickets to other destinations. If you search the market for banking products, then there is a high probability that you will find the same bonus programs for paying for public urban transport.
