What is a credit card?
Credit card is called bank plasticThe card on which the bank calculates the amount of the loan given to you. Using this card, you can use the allocated means to pay your expenses until you have used up the entire loan amount.
Until recently, most of ourcompatriots and did not know what a credit card is. Plastic cards in our country actively conquer space during the last seven or eight years. During this time, 120 million bank cards were issued, and almost half of them are credit cards.
Types of credit cards
The most common in Russia are -MasterCard Worldwide and VISA International. It is very convenient with their help to pay for purchases, services or simply to receive cash in an ATM. However, funds from credit cards can not be transferred to other accounts by a non-cash way. Credit cards can vary depending on the offered terms of service, on the level of opportunities and on additional services:
- classic (classic),
- gold (gold),
- platinum (platina),
Advantages of credit cards
If for the initial time of use (3 months -1 year), you can prove that you exactly follow the payment discipline, then the trust of the bank increases. In this case, he is ready to raise the initial credit limit and provide a loan for a larger amount.
Do not forget about what a credit card is -this is credit in fact. The money spent on the card will need to be repaid to the bank. It is possible to do this in part, paying each month an amount equal to the minimum payment. In this case, you will have to pay interest for using the loan. They will be charged on the amount of debt from the moment of its occurrence and until you completely repay it. Usually, the minimum payment does not exceed 10% of the total debt, this amount is also added to the accrued interest for the use of the loan. The minimum payment amount must be paid within the period established by the bank - the payment period.
The main plus of a credit card is the grace period,time during which no interest will be accrued on the money that was taken on credit. If you have time to repay the loan before the grace period, you will not have to pay interest.