Top 10 Facts About Credit Cards: Sometimes it happens that you need to grab some money before paycheck or there is not enough money for a large purchase. In such cases, a credit card can help out great! Perhaps the largest number of horror stories and rumours circulate about this financial instrument.
Let’s figure out together how a credit card works and in what cases it can seriously help out. If you want to generate a virtual credit card then you can generate it from the credit card generator.
The Top 10 facts About Credit Cards Are:
1. With a credit card, you spend the bank’s money, not yours.
A credit card provides access not to your money, but to the bank’s money. Using a credit card, you can borrow money from the bank for a while and then return it.
Not everyone understands the difference between credit cards and regular debit cards. We explain in simple words: we use our own money on a debit card, and bank money on a credit card.
2. Credit card is your backup wallet.
It so happens that something you need broke, that you need right now. For example, a car or laptop. And I don’t have my own money for its repair, but they will appear, say, in a month.
In fact, a credit card is your spare wallet, from which you can take as much as you need if you need it urgently.
It is also convenient to make purchases in stores and on the Internet with a credit card. You can also withdraw cash from a credit card, but with a commission.
3. Credit cards are different – you need to choose the one that suits you.
Today the financial market offers a huge variety of different credit cards. What should you pay attention to?
- On the payment system of cards – in Russia the most widespread are MIR, VISA and MasterCard.
- For card status – there are classic, gold and platinum cards with different privileges and chips.
- On limits – the limit on spending can be either very small – literally 10 thousand rubles, or amount to millions. The main thing is to choose the level of spending that will be comfortable and affordable for you.
- For different programs – there are cards, when spent, miles are credited in airlines for spending or deductions are made to charitable foundations.
See, for example, how this is implemented at Sberbank. His site has a large selection of categories and offers. Loyalty programs may be provided for credit card users.
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 or not.
4. You don’t have to pay interest on a credit card.
For using a credit card, as well as for a classic loan, interest is charged, but there is an opportunity not to pay this interest: it is enough to return the money to the bank during an interest-free period.
Often there is no annual fee for credit cards. In the same Sberbank, a gold credit card does not have a service fee, plus you get THANKS for every purchase. In general, if you keep within with payments in the interest-free period, the cc checker will cost nothing.
5. Grace period is very convenient and simple.
Any credit card has a grace period or a period during which the bank does not have to pay any interest. It consists of two parts – reporting and billing periods.
During the first one, you can safely pay in shops by card. During the second, you need to return the entire amount spent so that the bank does not charge interest.
Remember that the grace period is only valid for non-cash purchases! It does not apply to transfers and cash withdrawals.
Take Sberbank as an example: here the reporting period starts on the same day every month and lasts 30 days. When they pass, the bank will send you a report on all transactions during this time.
Then you will have another 20 days to pay off the debt – this is the billing period. Thus, you have 50 days of free credit. You can return the money earlier, the main thing is not later than the end of the payment period.
The interest-free period does not start from the moment of the next purchase, but from the date following the date of the report. For example, if the bank sent you a report by November 30, then a new interest-free period will begin on December 1. You can spend money any day until December 30, and you will need to return it until January 19 inclusive, if you do not want to pay interest.
There is no need to memorize or write down the dates. Once a month, you will receive reports by email with all the information. For example, Sberbank sends SMS with payment reminders. All data can also be found in your personal account in the web version of Sberbank Online.
6. The credit limit can be decreased or increased.
The amount that the bank is willing to lend you is usually limited: each bank determines the limit based on the client’s solvency.
If you are already a client of a bank – you have an account where money is regularly received, or a deposit – then, most likely, the limit on your credit card will be greater than in a new bank for you.
The credit limit can be increased if you regularly spend money from your credit card and return it accurately and on time.
7. Before using the card, you need to activate.
To begin utilizing your Mastercard, you need to initiate it. To do this, you need to make various straightforward advances. How about we check out the case of Sberbank:
- Go to Sberbank Online and check on the off chance that you have a pre-supported charge card offer.
- Put in a request for a charge card.
- Sit tight for the SMS that the card has shown up at the bank’s office.
- Get the card at the Sberbank office.
When you get the card, check if your name and last name are accurately shown in the Latin record on its front side. Then, at that point, put your mark on the rear of the marked line.
To begin utilizing the card, you need to actuate it. Make and set a PIN code. When the card is activated, you can make purchases.
On the off chance that you got a card with a PIN envelope, enact it in another way: demand the equilibrium on the card at any ATM. Or on the other hand, delay until the card is initiated naturally the following day – you will get an SMS about fruitful enactment.
8. You can replenish a credit card in cash and non-cash ways.
You can control funds on a card in the same way as on a debit card. As a rule, banks have an internet bank.
In Sberbank, it is convenient to do this using the Mobile Bank service or the Sberbank Online application. Replenishment of the card is just as easy and convenient.
You can transfer money to a credit card from your salary card in your personal account or the Sberbank Online mobile application, as well as through an ATM or self-service device. In addition, cash replenishment of a credit card is also available at the Sberbank office.
9. You can pay with a credit card in shops and on the Internet.
You can pay for purchases all over the world with a credit card. Anywhere where there is a payment terminal – just show your card to the cashier. You will be asked to enter your PIN or sign the receipt to confirm your purchase.
If you pay using a contactless method using a smartphone, then you will not need to enter a PIN code, payment will be made using a code or a fingerprint.
In addition, it is convenient to pay with a credit card in online stores. Remember that online purchases are protected if they happen on trusted sites.
Choose popular stores and marketplaces and carefully check their address in the address bar of your browser. You will receive an SMS with a code to confirm your purchase. Do not share it with anyone, even if it came to you when you were not shopping.
10. If you have forgotten your PIN, you can change it.
If you have forgotten your PIN, you do not need to order a new card.
For instance, in Sberbank, you can think of another PIN and set it in Sberbank Online. We should perceive how should be helped this:
- In your personal account “Sberbank Online”: select a card, click “Operations”, and then “Set PIN-code”.
- In the Sberbank Online mobile application: select a card, open the Settings tab and click Set PIN.
Summing up, we note that a credit card is a convenient payment instrument that allows you to save money. But remember that it involves self-discipline, organization, the ability to count, as well as regular income to pay off the loan on time.