The credit boom grows. Rather recently to consumer loans (such are arranged directly in the supermarkets) and credits for urgent needs (when the bank gives out to the borrower cash) have increased also credit cards. In what is their advantage in comparison with other kinds of credit products?
1. How the credit card differs from the usual card?
The main difference is in that on the usual (debit) card there is money which the client before them to spend, brings on the bank account. On a credit card your money isn’t present as it is a loan from bank which can be spent at own discretion.
2. In what is their advantage?
If at reception of a consumer loan the client needs to pay percent for all amount of loan holders of credit cards pay the percent added by bank only for actually spent sum.
3. How to obtain a loan?
Procedure of reception of a credit card is simple enough. The borrower needs to come to bank, to fill the questionnaire and also to show the document proving the identity (for example, the driver’s license). The bank can demand also the inquiry on incomes.
Usual requests are considered during 1 – 5 days. After that it is required to issue the card. However, now many credit establishments are ready to give out you plastic there and then is so-called cards of “instant release”.
4. For what it is necessary to pay?
Now the average rate for using the credit cards is 12 % annual. Consider that you also should pay for consideration of the request and card issue. Also banks take the commission for loan account conducting.
If you already are the client of any bank: and you got there a debit card then to receive a credit card it will be more favourably here – for regular customers in many credit establishments do indulgences. For example, release from a payment for consideration of the request and card issue.
Still it is possible to save if to use a crediting grace period (unfortunately while it is given not all by banks). It works so: spend money, in the end of a month the bank sends you the statement with an outstanding amount. It needs to be extinguished within 20 days. If you do everything in time – pay nothing for using the credit, not in time – percent are charged for all term.
And the grace period can constitute till 50 days, all depends on what number you have spent borrowed money. If it is the closer by the end of month the more shortly is a grace period.
5. And what if cash is necessary?
By means of their card always it is possible to receive in an ATM or bank cash desk.
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