Today it is difficult to find a person who at least once in his life did not hold a plastic card in his hands. This is both a reliable way to store your own funds and a convenient payment tool. Plastic cards are conditionally divided into two types: debit and credit. Now we will talk about what a credit card is, what types of them exist, how to use them correctly, the advantages and disadvantages, and much more. It is also important to understand how credit cards differ.
A credit card is actually a plastic card with a credit limit. In fact, this is one of the forms of lending, but its features are that a cash loan is provided in the form of a line of credit. Or, in simple terms, the borrower can draw up an agreement with the bank to provide a credit limit once and use the borrowed money again and again as the principal amount is repaid.
In fact, both for the bank and for the client credit limit on a plastic card is the most convenient and profitable way lending. The bank has the opportunity to receive profit not only from interest, but also for additional services, for example, annual maintenance remote services and more. The client, on the contrary, has the opportunity to use the card for free, if you use the grace period.
Important! Credit card is the key to bank account on which funds are placed financial institutions emitting plastic.
What can be said about this banking product like a credit card, what is it in simple terms? It is primarily a payment instrument for paying for goods and services. It is mainly suitable for clients as a spare wallet, for example, to avoid borrowing money before payday. With a credit card, you can pay for any goods and services, including on the Internet. But withdrawing cash from it is not so profitable, so if you need cash, it is wiser to take a consumer loan.
Consider all types of credit cards, although in fact, plastic can be characterized by a variety of parameters, consider several of them:
In addition, cards can be registered and non-named, the latter are instant issue plastic.
As mentioned earlier, a credit card is a payment instrument with borrowed funds from the bank in the account. Accordingly, if the borrower signed loan agreement with the bank and gained access to the account, then he can dispose of the funds at his own discretion. The possibilities of plastic are almost unlimited, with the help of it you can pay for goods and services and withdraw cash. And also make purchases through online resources.
As for the question of why a credit card is needed directly to its owner, this is a strictly individual question. In fact, most users take out a credit card and keep it as a spare wallet for unexpected expenses. It is beneficial for other users to use banking plastic because they have the opportunity to take part in promotions from bank partners, receive goods and services at discounts, as well as accumulate points and exchange them, for example, for air or railway tickets. By the way, credit cards can be used to pay for goods and services in foreign currency, while you do not need to withdraw cash and change them at exchange offices, currency conversion occurs automatically. Accordingly, users who often travel abroad must take a credit or debit card with them.
Please note that the main benefit of a credit card user is that there are no transaction fees when paying for goods and services.
As mentioned earlier, today the bank, in order to attract more customers, offers not only plastic with a credit limit, but also additional features in the form of discounts, bonuses and other privileges for active users. But this is far from the main advantage, because when applying for a bank card, the client gets access to an online bank, with which he can lead 1000 non-cash transactions, pay public utilities mobile communication and durable.
By the way, a credit card is more profitable than a cash loan for the simple reason that it can be used for free, that is, you do not have to pay the bank a fee for using borrowed funds, for this you just need to issue a credit card with a grace period, the longer the grace period, the more profitable it is to use card. If you repay the main debt within the specified period, the bank does not charge interest.
Important! The bank charges a fee for the annual maintenance of a plastic card, so be sure to pay attention to this condition when applying.
Let's start reviewing the benefits:
Among the shortcomings, one can single out a high interest rate, which is 5 or more points higher than consumer lending. Another drawback is that the bank charges a fee for servicing the card, a fee for cash withdrawal transactions and others, for example, in the form of payment additional services SMS alerts or apps. The last disadvantage is the high risk associated with fraud.
It is important to learn how to use borrowed funds correctly, because the wide availability of bank loans can lead the user to debt hole, at a time when the cost of repaying the loan exceeds the financial capabilities of the user.
So what is a credit card? In fact, this is the key to a credit account, that is, the bank gives you the opportunity to use borrowed funds within the established limit. You can use a credit card indefinitely, because the credit line for most of them is renewable, which means that you pay the principal debt, and the bank opens you access to the account again.
In this article, we will tell you everything about credit cards. You will know what is Grace period And minimum payment, is it possible to withdraw cash from the card and how to check the balance on the statement. Let's figure out how to use a credit card so as not to pay interest, and consider whether a credit card is reflected in credit history.
A payment instrument with which you can use bank money. With the card, you can pay in stores and on the Internet, withdraw money, send transfers to family and friends.
The card can be used to pay for purchases in stores and the Internet, you can withdraw cash from it, send transfers. When using a credit card, the main thing is to pay for the spent credit funds on time.
Proper handling of one credit card or several at once has the following features:
By following the above rules, you will be able to use the card efficiently and not pay interest to the bank.
If you deposited them on the card, you can, moreover, some banks charge interest on the balance of funds in excess of the credit limit. Most often, banks do not charge a fee for withdrawing your money from an ATM. However, be careful if you "hook" at least 1 kopeck. from the credit limit, the bank will charge a commission for cash withdrawal for the entire amount of cash received.
CVV/CVC is a code that verifies the authenticity of the card. It consists of three numbers and is located on the back of the card, after four last digits her numbers. CVV is used by Visa and CVC is used by MasterCard.
This code works as a PIN for online transactions. To pay for a purchase on the Internet, you need to enter the card number, expiration date and CVV / CVC. Only after entering all three parameters, the purchase will be paid.
When comparing the offers of banks, pay attention to all the parameters of the card and the tariffs for it.
When deciding in which bank the credit card is the most profitable, select according to the following parameters:
Banks set different requirements to the age of the borrower. Eg, Tinkoff Bank issues plastic from the age of 18, and from the age of 22.
Documents required for issuing a credit card: a passport of a citizen of the Russian Federation and a second document to confirm identity.
The second document can be:
Additionally, the bank may request a document to confirm income: a certificate according to its own model or 2-personal income tax.
Banks indicate different parameters that the borrower must meet, for example:
To apply for a credit card with an instant decision, go to the official website of the bank. Go to the credit card section, select the one you need, click "Order", fill in all the fields of the online form. After considering the application, the bank will send you an SMS or a specialist will contact you by phone. Card production time is up to 5 business days. You can order a card by mail or by courier.
You should not apply online for a credit card to all banks at once, since all requests are displayed in the credit history. Banks issuing plastic, while checking your data through credit bureaus, will find a list of applications to several banks and may refuse a loan. Therefore, it is better to limit yourself to one application and fill out the questionnaire first in one bank, and if a refusal comes, then apply to another.
Issuing a card to a third party by proxy is allowed. The power of attorney must indicate that its bearer has the right to pick up the card at the bank branch, otherwise the issue of plastic will be refused. IN individual banks restrictions on the issuance of cards may be set.
Why the bank did not approve the application and does not issue a card:
One client can simultaneously have no more than 2 credit cards in one bank, while the second card must be different from the first. For example, you cannot issue two Aeroflot cards in one bank. In several banks, you can order two or more credit cards, if income allows.
To boost available credit limit, you need to submit a new application for a credit card, be sure to provide a 2-NDFL certificate. The bank may increase the loan amount if you actively use the credit card and do not allow delay. In case of unfair use of plastic, the limit can be reduced by the bank unilaterally.
You can quickly close a credit card by making regular payments, the amount of which is more minimum payment on the map. By using early repayment you can pay off total debt on the card for a year or less.
If you have multiple credit cards, choose the one with the highest rate and use one credit card to pay off the other. After that, you can continue to pay for one card with a lower rate.
Depositing cash to the card does not mean immediately paying off the principal debt, usually the money is credited overnight, and the next day you can use the grace period.
You can top up your credit card in the following ways:
The card can be used within the established credit limit. But if there is an overdue debt on the card, the bank can block the plastic for expense transactions. In addition, for the delay in the monthly payment, the bank charges fines and penalties, so the debt will grow quickly.
Credit card information is taken into account and reflected in the credit history, which banks check when considering applications. If your credit card is in arrears, you can ruin your credit history.
When deciding whether to take a credit card, consider the following nuances:
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Until quite recently, most of the population in our country did not know what plastic cards and why they are needed at all, and after a few years, almost every person has at least one such means of payment. It is the lack of experience of use that is due to the fact that many still do not understand what a credit card is and what a debit card is, and how they differ. Despite the fact that when issuing any card, bank employees explain some of the basic provisions, the most important is usually hushed up, so you have to figure it out yourself.
First of all, you need to figure out what the card is and what it is for. It is a payment and settlement document, which is issued in the form of a nominal plastic plate of a rather small size. In some cases, such a means of payment may be non-personalized, however, then available balance it will be quite small. Such cards can be used for non-cash payment for any products or services, if the distribution network is equipped with the appropriate equipment that reads information from the carrier and sends a request to the bank to authorize payment.
During a communication session with the settlement center, the computer confirms the presence of the amount necessary for payment on the account of the buyer, then allows or does not allow the withdrawal of funds. The amount of credit often depends on the conditions under which the card was issued. If it was issued with a salary, then the available loan will depend on the amount of monthly accruals, but if the client decides to issue a “credit card” on his own, then he will need a certificate of income for the last 6 months or an account with the issuing bank.
Where can I issue electronic means of payment
When drawing up documents, explain what a credit card is, as well as the rules for using this service, however, if he did not do this, then you can ask him questions yourself or call the bank by phone hotline and find out all the points of interest there. The most reliable visa is considered, which is always personified. Some banks also issue MasterCard cards, but very reluctantly, only for small loans. If the client has positive story use of funds, then after a while the amount of a possible loan can be increased by the bank independently or at the request of the client.
How payment cards are issued
At the moment, there are several options for card design. Previously, the procedure was carried out only with a personal visit to the bank, and the execution of all documentation took a lot of time. Relatively recently, it became possible to order credit cards via the Internet, which is especially convenient with a busy work schedule and the inability to go anywhere for a long time. In this case, the client is obliged to fill out an application form on the website, indicate all the necessary data there, send it to the bank and wait for a response. However, it should be remembered that if a person does not really know what a credit card is and is not sure that he needs it, then it is better to either refuse to issue it, or personally visit the bank for a preliminary consultation. It should also be borne in mind that in the questionnaires it is necessary to indicate only the information that corresponds to the truth, since bank employees are required to check the history of the client and his data.
Each bank has its own policy regarding the issuance and maintenance of credit cards, so even if one banking institution refused to extradite her, do not despair. Of course, the more unreliable and questionable data the borrower has, the higher the interest rate for using the money will be, however, this is a reasonable risk if everything is paid on time.
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Surely everyone has heard more than once about offers from banks about the possibilities to get a credit card for free, but not everyone knows what benefits they can give and how to use them. For many, one word "credit" is immediately associated with "robbery". In fact, everything is a little different. We suggest you read this article to the end to learn about all the intricacies of credit cards and thereby improve your financial literacy.
Credit card(abbreviated as "credit card", from the English "credit card") is a bank card that allows you to make purchases automatically by borrowing money from the bank
The "borrowing" of funds occurs during the purchase operation. Each card has a credit limit that can be used. Usually this amount is limited to a range of up to 300..500 thousand rubles, depending on the type of credit card, your income and the bank. Issued for a period of 2 to 5 years, after which they are automatically reissued.
Each bank has its own conditions. There is no single standard by which credit cards work. We will look at the most common conditions.
Grace period on a credit card what is itOne of the benefits of credit cards is the ability to use grace period(or grace period), which allows you to return money to the bank without paying any interest and other overpayments. How much they took - so much returned. Everything is fair and without deceit. Each bank sets its own grace periods (some more, some less).
Note
The grace period only applies to payments non-cash payment. When withdrawing Money a fee will be charged from the ATM (in most cases, 3-5% of the amount). Therefore, it is better not to withdraw cash from a credit card, as this is extremely unprofitable.
Exist different types credit cards, which, depending on the status, provide different opportunities for making payments. They are usually classified as follows:
The most important parameters are:
Banks willingly issue credit cards to almost every person in the hope that he will forget or be unable to make a payment on the loan taken on time. In this case, the bank will make good money (commissions, interest for the period, etc.).
However, credit cards still have many undeniable advantages.
There are a lot of offers on the credit card market. This is good, because due to high competition, really good propositions for the end user. Consider the best credit cards for 2019.
Which is better: a credit card or a personal loan? There is no single answer to this answer. Depending on the situation, either the first or the second option may be better.
Here are the main differences between a credit card and a loan:
You can withdraw money from a credit card through an ATM. But there is a fee for this. However, on the market you can find cards that allow you to do this without overpayments. To do this, you need to look specifically for such proposals.
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Externally, the card is a plastic rectangle measuring 86*54*0.76 mm. It is interesting that initially the cards, and only then they began to be made of plastic.
When manufacturing, protective elements are applied to the surface of the card. On the front side is the payment system logo, hologram, card number, bank name, chip, owner's name, etc. On the back, two important components can be distinguished - a magnetic strip and a security code. But not all of this without fail will be on the card - for example, it may not have the name of the owner or the chip. You can read more about the protective elements of banking "plastic" in.
There are credit cards, debit cards and overdraft cards. Outwardly, they are similar, but the conditions for them are completely different. Don't confuse them!
Cards can be classified according to several parameters.
1) Cards may belong to different payment systems (PS)
The most common PSs are Visa, MasterCard and. Unlike the first two, the latter is not yet very popular in Russia. Regarding the use Visa cards and MasterCard in our country, it is impossible to say which of them is better. There is practically no difference. But when traveling abroad, the choice of a payment system must be taken more seriously, you can learn more about this.
2) Cards are divided by type (class)
Of course, the classification is rather conditional, but the essence is clear.
3) Cards are named and unnamed
Name cards (or personalized) are those on which the surname and name of the holder are present.
