A credit card, when used correctly, will become a convenient financial tool and can help out in a difficult situation. Due to the credit limit, you can pay for an urgent purchase and not borrow money from friends. The card is especially convenient when traveling, for booking hotels, car rental and other services that require a deposit.
To choose the best credit cardyou should take into account all the features of its use, including the size of the loan, the interest rate, the conditions of the grace period, the availability of cashback, as well as the cost of issue and maintenance.
Banks offer various credit limits, depending on the category of the card and the solvency of the client. The amount can vary from 10,000 to 1,000,000 rubles. Card issuance and maintenance fees may be charged, waived or applied if conditions are not met. If the client does not intend to use the card all the time, it is better to choose those offers that have free service without conditions.
An interest-free period in many banks is provided for a period of up to 50-60 days. This means that transactions made during the calendar month must be repaid within the next month. In this case, no interest is charged. If the client does not plan to fully pay the debt, the minimum mandatory payment must be made during this period.
Thus, if a credit card is used strictly in case of need and repay the debt from the nearest income, credit funds can be used free of charge.
According to Director Sergei Shchekaev, it is very important from the very beginning to carefully understand the features of the work of the grace period, and if necessary, contact the hotline or the manager at the bank branch. The client must understand exactly what to do and what not to do in order not to pay interest. It is also necessary to figure out which operations the grace period applies to – only for purchases or for cash withdrawals and transfers too.
Before issuing a card, you need to clearly understand for what purposes it is required. If you need to make a certain purchase, it is better to use a regular consumer loan or a bank installment plan issued in a store. The interest rate will be lower, and it will be easier to pay off the debt.
If you fully use your available credit limit and make only the minimum monthly payments, credit card repayments will take a very long time. The client will constantly use the bank’s money and pay interest on them, without actually returning the debt. The overpayment in this case will be significant.
It would be useful to have a loyalty card program, including cashback for purchases. You can get a small percentage for all expenses or an increased percentage for purchases in certain categories.
The reward often has a limited limit and can be paid in rubles, points, miles. The further possibilities of the client to use the accrued cashback depend on this. Bonuses can be used for future purchases, compensation for completed transactions, the purchase of goods and services from bank partners.