Credit cards that have long taken root in America and Europe have been popular in our country for years. In the wallet of every third Indian, you can find one or even several of these cards. This is due to the development of banking products and services. However, the word “credit” sometimes causes fear and distrust, despite the convenience and widespread use of cards in everyday life. Let’s see what the advantages of a credit card are and whether there are pitfalls.
Credit card – a bank payment card that allows you to manage borrowed funds within the credit limit. The credit limit, in turn, is the maximum available amount that the holder has the right to use. Widespread in the world today are cards of Visa and MasterCard payment systems.
Credit Card Benefits
Bank transfer is the usual way to pay for various services. The cardholder can not only withdraw money at an ATM 24/7 but also pay it at shopping centers, online stores, restaurants, gas stations. The card limit is set by each bank individually, depending on the client’s credit history and needs. You can increase it if you are not noticed in late payments. The most attractive offers in the financial market – a monobank card from Universal Bank with a limit of UAH 100,000, a Maximum card from Alfa Bank with a limit of up to U 200,000, a “Want-card” card from Bank of America Aval – – up to the US $ 100,000.
24-hour access to funds. Regardless of the time of day, you are always available the amount to make a purchase without leaving your home. There is no need to spend time standing in line at the railway ticket office or look for a terminal to pay for the online purchase of a new coat or TV – you will be able to pay for the order online.
Speed of card issuance. Competing among themselves, banks are trying to attract customers by quick card issuance and a minimum package of documents. And the ability to get a credit card online saves time as much as possible on visiting a banking institution.
The presence of a grace period of credit. The duration of the period of free use of credit funds reaches an average of 50 to 60 days. For example, Universal Bank gives the right to use funds without a fee up to 62 days, while US Bancorp- up to 55.
Safety and comfort. The risk of meeting a fraudster lies in wait in the subway and bus, in the passage, and even in the store. The situation with a cut bag pulled out a purse from a pocket is far from uncommon. In case of loss or theft of a card, it is easy to block it by calling the bank. In addition, the card is protected by a pin code, which is known only to the user.
Cost control. It is not always possible to recall where and when the cash amount was spent. By requesting a statement on the card, you can control and plan monthly expenses. The ability to instantly acquire the desired thing entails sometimes unnecessary expenses. It is worthwhile to soberly evaluate your financial realities before you make a transaction.
Use of funds abroad. Wherever you go on a weekend, you don’t have to worry about exchanging money. In whatever country you are located, the amount of payment/cash withdrawal will be automatically converted into local currency. If you decide to rent a car abroad, they will ask you for a credit card to pay for the service – cash will not be accepted. And in the case of OTP Tickets Travel Card, enjoying your vacation and paying with a card, you will receive bonuses that can be paid in the future when buying air and train tickets. There is also a discount of 50 for trips from Uber to the airport and back.
Cashback Actively using a credit card, part of the funds from the purchase is returned to you. For example, TD Bank, PNC Bank has a cashback program for payment in different types of outlets: supermarkets, pharmacies, gas stations. Such a function will return up to 20%, but more often 1 – 5%. The higher the status of a bank card (Gold or Platinum), the more cashback.
Additional privileges. To attract customers, banking organizations offer privileges, accumulative bonuses for purchases, which in the future can be settled or exchanged for prizes.
Credit Card Disadvantages
Along with this, credit cards have their drawbacks. This is sometimes a high percentage for the use of credit funds, and additional fees for servicing the card (SMS alerts), and fees for cash withdrawals, and penalties for late loan repayments. Remember, even insignificant arrears will entail accrual of interest. This will not only undermine your credibility with the banking institution but also impose an obligation to pay off the debt on time. Delaying with debt repayment, you run the risk of increasing the loan amount several times.
How to get a credit card online
A quick way to get affordable withdrawal funds is to get a credit card generator. This process takes up to 15 minutes. You need to choose a credit card that is suitable for all conditions. After the application has been reviewed, you can pick up a credit card at the nearest bank branch or order it directly at home.
A credit card is an additional source of funds that you can rely on in an unforeseen situation. Being responsible and attentive users, you will not feel the shortcomings of the cards. There is nothing perfect in this world.
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