How To Choose A Credit Card? A credit card provides access, not to your money, but the bank’s money. Using a credit card, you can borrow money from the bank and then return it. Sounds attractive, but you need to be careful when choosing a credit card. What to see for when picking a credit card?
The first question to ask yourself is: Do you need a credit card? It is a convenient payment instrument. But it requires self-discipline, organization, ability to count, and regular income to pay off the loan on time. After all, if you delay payments, you will have to return to the bank much more than you took.
It may be more profitable to save up for the desired item. As well as to save money so that in case of unforeseen expenses you have a supply. Then you do not need to borrow from the bank.
But first I require you to notify you that if you desire to generate a fake credit card online, you can create it from a credit card generator.
How To Use A Credit Card Without Overpayments?
If you, after weighing everything, decided that you need a credit card, study the offers of different banks. Compare the terms, paying particular attention to the following:
- Credit limit.
- Grace period.
- Card usage costs.
- Loyalty programs, the ability to accumulate bonuses.
1. Credit limit.
The amount that the bank is ready to provide you is limited. Each bank determines the limit depending on the client’s solvency. If you are already a customer of the bank the limit is likely to be higher for you than in a new bank.
You can increase your credit limit by spending money on your credit card regularly and paying it back carefully.
2. Grace period.
Almost all credit cards checker have a so-called grace period – a period during which no interest is charged on the use of funds. And if you borrow money from the bank and return it on time specified in the contract, you will not have to pay too much. The grace period is usually 30-60 days and includes:
- the time during which you make purchases (usually a month);
- the time during which you must return the money.
Some banks offer extended grace periods. However, not everything is so simple: during this period, you will still have to pay off some of the established parts of the debt.
3. Payment by credit card.
In addition to the money you actually borrow from the bank and need to be returned, a credit card may incur other costs:
- interest for the use of the loan;
- annual service fee;
- commission for transfers, cash withdrawals from a bank ATM.
Compare all terms together. For example, a bank may offset a low annual service fee with a high interest rate for the use of the loan.
Check to see if the bank is trying to impose additional services on you that you do not need (such as insurance or remote services), but for which you will have to pay. Check if such services are needed and how much they cost.
It’s also worth checking the scope of the annual service – many banks don’t charge an annual service in the first year, but they may charge you for the next.
Please note: the term “annual service” does not necessarily mean that you pay for using the card only once a year – for example, 1/12 of the amount for the annual service may be debited from you once a month.
Nearly all banks require a charge for withdrawing money from a credit card. Please note: the commission can be in the form of a percentage of the withdrawal amount or in the form of a certain amount.
For example, the percentage of cash withdrawals by credit card is 4%, but not less than 300 rubles.
If you withdraw 300 rubles, then the commission will not be 4% of the withdrawn 300 rubles (300 ÷ 100 × 4 = 300, that is, 12 rubles), but the same 300 rubles, all 100% of the amount.
If you withdraw 7500, then you will also pay 300 rubles – exactly 4% of the amount (7500 ÷ 100 × 4 = 300).
Well, any amount more than 7,500 will cost you 4% of the commission (for example, from 10,000 – 400 rubles, from 20,000 – 800 rubles).
Fees may also apply for transferring money from a credit card to another card or checking a bank account. Therefore, the most economical way to use a credit card is to pay for purchases. And services in retail and online stores.
Find out what will happen if you do not follow the payment schedule. What fines and penalties you will face under the terms of the agreement. Please note: even if the contract does not indicate specific amounts of forfeit. Including late payment or non-repayment of the loan, you can still collect them in court. Both the unpaid amounts and the penalty – in the amount of the refinancing rate of the Bank of Russia.
4. Bonuses and loyalty programs.
Loyalty programs may be provided for users of credit cards such as debit cards. A loyalty program is a way to get back some of the money spent.
Therefore, when choosing a card, study the bonus programs offered by the bank and evaluate whether this offer is useful to you.
For example, if you do not have a car, you will hardly need a discount on gas station services. But if you travel often, bonus measures will appear in handy.
Rules for the correct choice and use of a credit card:
- Carefully read the agreement, all annexes to it and compare the offers and conditions of different banks.
- If possible, pay off the debt on time, without going beyond the grace period.
- Pay with your card, try not to withdraw cash from an ATM.
- Choose loyalty programs that are interesting for you, accumulate bonuses.
- And remember that the loan will have to be returned in any case, even if the bank’s license was revoked.