Installment cards appeared on the Russian financial market relatively recently. And immediately a lot of questions arose: how does such a card differ from a regular credit card, whether interest is charged, whether in all stores it is possible to buy goods with it, is it really profitable, etc.
The mechanism of the installment card is that the organizations that have entered into an agreement with the bank provide an installment plan to the buyer from a month to several years. There is no interest. The store pays them. The bank is also profitable, it receives its percentage from each operation. Why would stores need it? They get a stream of customers, and therefore profit.
Interest-free installments are valid only for partners. But, if the card has its own money, then purchases can be made in any store. You can see the partners of the credit institution on the official website of the bank.
It is very simple to issue a card. The client enters into a contract, and then just makes purchases and does not forget to make the next payment. Information about calculations can be found in the mobile application, on the website in your personal account, or activate SMS notifications. The monthly payment is calculated as follows: the total cost is divided by the number of months in installments.
The maximum card limit is 350 thousand rubles. For registration, as a rule, a passport is sufficient, but the bank may request additional documents. The bank can refuse to issue a card if you have a bad credit history or you underestimated your debt load. If a person loses his job, the bank may offer to open a debit version of the card. And this is also very profitable, since a debit card will allow you to accumulate money with a rate as on a deposit, and even receive cashback for purchases made.
When applying for a regular loan in a store, you can come across cunning schemes and get confused in the nuances of the contract. Here everything is transparent. In addition, there is no need to waste extra time concluding agreements with different retail outlets.
There are installment cards, the balance of which is charged with interest. And this is also a very pleasant moment.
In general, the installment card has advantages. This is the purchase of goods at a regular price, without overpayments, and convenient lending.
It must be remembered that, as with any credit card, it is best to avoid delays. In this case, fines and interest will be charged. It will also harm your credit history.
Some installment cards have the option of transferring their own money from card to card and allow you to withdraw cash. True, you will have to pay a commission for this.
Installment cards are free to maintain and additional services are usually free as well. You can study all the nuances of providing a card on the websites of credit organizations. But there are no fundamental differences. It all depends only on your preferences. Do I need to withdraw cash, certain partner shops, what credit limit is needed, is there a cashback option.
