Credit Card is the payment and settlement document in the form of a plastic card issued by a credit institution and confirming the presence of a cardholder’s credit in the institution. This card is used to pay for any goods and services in shops or on the Internet. Contrary to popular belief, you do not put money on the credit card to continue to use them. On the contrary, the bank gives you a revolving credit within your credit limit. In this limit of credit extended to you, usually lower than a mortgage or consumer loan.
Credit cards are personal, they contain the name and surname of the owner, a sample of his signature and card number. Credit cards are issued by international payment systems: VISA, Master Card, Discover, American Express, etc. Depending on the size of the loan and provided additional benefits and services, maps are classic, gold and platinum.
To get credit card is relatively simple. In most cases, the issuing bank does not even require you to confirm the income from employment. Simply enter your details in the application for this card, and after telephone verification of your data bank will permit card issue.
Bank may require you to pay for processing your application and issue a credit card. In addition, the bank may also require an annual maintenance fee card or maintenance of the loan
Bank issuing credit card does not require collateral for loans. Collateral is not required. However, in case of default on the card will continue to accrue interest, in addition, included the so-called non-payment of interest on the loan. As a result, an even chance against legal action and you become the owner of a negative credit history that will sharply reduce your opportunity to receive a credit in the future.
Bank giving you a credit card will provide you with monthly statements that list all transactions made with your credit card. You pay for purchased goods and services or cash withdrawal. Also, in the statement indicates the balance that you can spend with the card. This service is provided free of charge. You can take an extract yourself at your nearest bank branch to receive by mail or via the Internet.
The statement may be simultaneously a score which you must pay in full within the prescribed period. You can pay and the entire loan amount immediately. If you pay the entire amount of the loan at a certain time – say, up to 20 th of each month, the bank frees you from the payment of interest on the loan. The period in which the client is exempt from the payment of interest on the loan, called a grace period and can last up to 30 days.
The main advantage of credit cards is that you should not always up to the bank for a loan, a credit card for an automatically renewable. Credit cards are issued for one or two years and automatically extended, subject to timely payment of your accounts on the map.
Yu may use the loan on the card 24 hours a day, 365 days a year. A card holder may purchase any goods / product / service within the cash limit set on the map. Credit cards often provide additional services and benefits: insurance, discounts in various shops, hotels, rental cars. Cards can be used to make purchases over the Internet and to get cash from ATMs of any bank worldwide.
The interest rate is the most important factor influencing the choice of a card. However, you should also draw attention to the commission for the service and additional services.
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