A credit card is another way banks give you a loan. And if the decision to receive a credit card has been made, then you should not rush, but study the entire credit card market.
So how do you choose a card that will benefit you without losing your money.
The credit card market is very large. Each bank has its own assortment of cards with different terms of use and interest rates. Therefore, you should not take a credit card at the first bank you come across on your way. From the beginning you need to get all the information about the credit card. Having made the wrong choice, you can become a debtor to the bank for many years.
And most importantly, do not fall for different advertising slogans, phone calls and letters, because banks use many different ways for you to agree to get a credit card.
The very first way a bank can issue you a credit card you don't need is to use your salary card. You will be prompted to activate the overdraft service.
Overdraft is a short term loan. After your consent, a certain amount of money will appear on your card, which you can use when necessary. That is, you will not have a large supply of other people's money.
So this is very convenient, but there are drawbacks due to which I advise you to abandon overdraft in favor of a regular credit card. And this is because the overdraft interest is higher than that of a regular loan, the debt needs to be repaid in full, and not in parts, and powerful penalties for late repayment of money. The penalty is calculated for each day of delay in payment.
Overdraft is a loan on your payroll card.
Therefore, if you decide to get a credit card, it is better to give preference to a regular credit card.
Choosing a credit card is not difficult. The main thing is that it would be beneficial to the owner and it would be convenient to use it.
And so from the beginning we will consider the offers of all banks available to you and find out at what interest you will use the money from the card. Of course, less is more. The lowest interest you can find is 19% per annum. Next, we will receive information about the grace period - this is a grace period during which you can use the bank's money without interest. All banks have approximately one grace period of 50-55 days, but 60 days and 200 days can be found.
For example, you make a purchase of a washing machine, start using it at home without paying a penny, and you will go to return the money after 55 days. This is a completely free loan.
Free, but not really. You have to pay money for using a credit card. There is an annual service fee for the card. Banks usually offer the first year of service free of charge, and the next year you have to pay. You have the opportunity to use the card for a year, decide whether you need it or not, and then refuse. Or fool everyone and take cards from different banks every year.
The bank where you receive your salary can offer you a credit card absolutely free of charge, that is, without paying the cost of service. This is the most beneficial card for the owner. In fact, the price for using the card starts from 900 rubles and up to 5000 rubles per year. If we calculate and divide 900 by 12 months, we will get 75 rubles per month, this is the cost of the card, not very much. Therefore, we choose a card with a small amount of service.
It will also be convenient if the bank where you get your credit card is located near your home, or on the way from work. You will save time when repaying the loan. And if you forget to pay off the loan, then, returning from work, you can see your bank and remember that you have a loan.
It will be important for you how you will withdraw money from the card. This is either by non-cash method, making purchases in stores or in cash at bank terminals. After all, for withdrawing money in cash, they take a percentage of the withdrawal amount. For this they take from 3% to 5%. From 300 to 500 rubles when withdrawing 10,000 rubles. And there is a minimum threshold for withdrawal fees. If you wanted to withdraw 1000 rubles, instead of 50 rubles they will take 100 rubles. Consider this when withdrawing cash.
Ask what is the minimum loan payment. Now the payment is 5% of the debt plus interest on the loan.
The advantage of a credit card will be the availability of cash back, a return of a certain percentage of the purchase amount on your credit card.
When applying for a credit card at the bank's office, do not be lazy to find out if there are hidden fees and charges. There may be a commission for not using a credit card, that is, interest may be charged for inactivity of the card. This is rare, but you need to know about it.
Let's sum up and choose the most profitable card.
We choose a bank near the house.
Loan interest 19%.
Grace period 60 days.
Annual maintenance 900 rubles.
Cash back 3%.
It will be difficult to find such a card, there will always be one or two minuses when choosing a card. Therefore, you need to decide for what purposes the card is needed and how you will use it.
And in conclusion, I advise you to activate the SMS notification service. An SMS will be sent to your phone about all transactions on your credit card. The cost of the service is 30 rubles per month.
Wish you all a happy shopping with your credit card.
