Problems plastic credit card

Consider the interest and the limits and deal with dofunction and grace period

Credit card with every year closer to coming to life of every Ukrainian — it gives you the opportunity to pay for goods and services, even if your own money is not enough, using the Bank's money (i.e. borrowing). "The interest is charged only on the used portion of the limit. Also the client can "take" and "return" the debt at any convenient time," says Vice President, head of development of retail products of "Alfa Bank Ukraine" Alexey Pozniak.

WHAT GOES INTO THE GRACE PERIOD

When an ordinary person hears about a grace period, for example, in 55 days, he usually seems so idyllic picture: made when wanted, buying on credit, and then you can delay the return of the borrowed — at least until the 55th day after. But in most cases it is not.

The most common interpretation among banks "grace period" following. There is a "reporting period" — usually it is a month. Everything you bought on your credit card in the course of this month, early next stack, and you have to repay the debt to 25 th. So it turns out: 30 days months (optimists — 31) plus 25 days "payment period" in the amount come out of the proverbial "up to 55 days" grace period. If you repay the debt on time, the interest for the loan you will not pay at all, or will it be purely symbolic rate is like 0.01% per annum. Well, if not invested in a grace period — are to blame and will pay in full (often at a higher rate than a conventional loan) and from the first day of the debt. So notorious 55 days work only for purchases made on the first day of the month.

EXAMPLE. The presence of debt in the last month does not prevent you to make purchases in the next month without losing the benefits of the grace period. Here is what the example on the website of one of the banks: "In the beginning of September the debt on your card was $ 500 USD (for purchases in August), the 7th you spent even 1 thousand. So in September were not accrued interest, you have until 25 July to make 500 UAH. Then the interest of 1 thousand UAH will not be charged until 25 October, as in September you repaid the amount outstanding at the beginning of the month." While all of this is only relevant for payment of goods and services with money taken from an ATM, the grace period does not apply.

But the grace period can be interpreted differently — for example, to be reckoned from the date of first purchase. Therefore, this issue should be clarified in the Bank.

MAP MAP STRIFE

As pointed out by Alexey Puzniak, when you select the card you need to pay attention to the following parameters:

Interest rate. This is the price of credit, which the customer pays for using the Bank's money.

Commissions and other payments. This is the cost of services for a variety of operations on the map (for example, withdrawals from ATMs or for deposits).

The credit limit. The limit is determined on the basis of the client's solvency, while each Bank has its own threshold of "maximum limit".

A grace period. This time period ("grace period") during which the customer can use the credit limit. After the grace period, the Bank makes interest-free.

The presence of additional options (SMS-informing on the movement of money in the account, Internet banking, insurance against financial risks).

It is a good idea to ask what else the credit card has to offer to the client. This may be a return of funds for the purchase, the accrual of bonuses for loyalty programs or partners and so on. Also important is the class of the card, and with it the available programs of discounts and privileges from payment systems VISA and MasterCard. According to Alexei Punnaka, in recent years, the functionality of credit cards has changed significantly

Cardholders offer discounts and bonuses when using them, the possibility of accumulation of bonuses for subsequent use for various purchases.

Cards equipped with new technologies, such as contactless payment function, which allows you to make a payment in one touch the card to the terminal, without having to hand it to the cashier. In this case, the payment is instantaneous. Additionally, changing form and payment instrument — for example, a map may be built into the watch and can be used for contactless payment.

CREDITS FOR "THE PAYMENT"

"In addition to credit cards, banks offer their customers the opportunity to set the credit limit on the credit cards, — tells the Deputy chief of Department of crediting of Bank "Khreschatyk" Andrey Osipov. Perhaps the main difference between a credit card from a payment card with the option to set a credit limit is the fact that credit card originally provided the limit by a certain amount. As for the credit limit on the credit card, you need to apply to the Bank: then it will be installed at the rate provided for in the loan product".

EXAMPLES. For example, in one of the banks credit card products are designed for all categories of clients serviced at this financial institution. Specifications are developed by Bank services based on individual approach.

"To define the limit, the client contacts one of the branches of the Bank and fills out an application and questionnaire. A Bank employee checks the passport and the code that makes copies of these documents and authorizes the client and the Bank. On the basis of these documents of the special division of the Bank decide whether or not to set the credit limit on the customer's card. It takes two to five business days. The credit limit is set to the client after signing the loan agreement", — says Andrey Osipov.

Often it also happens that the credit function appears in the payment card and without any effort and even take the initiative from its holder. For example, in "salary projects" the Bank can make happy employees accepted the company's overdraft. "Overdraft loan amount directly depends on the size of their turnover (the size of enrollments, salary) on the client's account, — says Alexey Pozniak. — Also different terms and methods of repayment. Overdraft requires full repayment, and money collected automatically — when funds are transferred to a debit card of the customer. Well, credit card is enough to pay only the compulsory payment".