A credit card is a type of payment card. When you use it, you use the credit limit granted to you by the bank. You can have a credit card in the same bank where you have an open bank account, but since these products do not combine in any way, you may as well have it in any other institution.
The loan amount (i.e. the credit card limit) is set by the lender. The limit is the result of your monthly income and credit history.
How do you use a credit card?
Reasonably. This is the most important rule that you should follow. With a credit card, you can make cashless payments, withdraw funds using an ATM, and make transfers and transactions in online stores. Remember, however, that not all of these operations are free.
Interest-free period – what is it?
Of course, you have an interest-free period on your credit card, which can be over 50 days. This means that for over a month the loan will be free for you, and you, in the next billing period, will be required to repay only the minimum amount.
But check exactly in what situations the interest-free period will cover you because most often it only applies to card payments in stationary and online stores (i.e. transactions that the bank treats as non-cash). All other transactions will accrue interest from the first day.
Credit card transfer – can you?
Can I pay bills by credit card? Well, you can, but it doesn’t always pay off. Some banks treat transfers as cash transactions, others as non-cash transactions, but in principle, each bank will charge you a commission for such a transfer. When choosing a credit card, pay attention to what fees will be associated with the transfer of funds from your credit card so that you do not feel cheated later.
If you want to make a transfer using a credit card, you must remember that the bank usually charges a large commission for such an operation. You can check its amount in the table of fees and commissions of the bank from which you have a credit card.
Credit Card Ranking
A comparison of credit card offers allows you to choose the best option. You can compare the interest-free periods, annual fee or interest rate, and even … card images. To facilitate this task for you, we have prepared a credit card ranking for you.
Credit and debit card – differences
To compare these two financial products, let’s first start by ordering knowledge. We can use four types of cards: credit (about which we write in today’s article), debit, prepaid and charge cards.
Debit card – this is the basic payment card that is issued when opening a personal account. With this card you pay, withdraw money – but only yours.
As you can see, these two financial products, apart from one common feature – high popularity – are more divided than shared. If you used a credit card, then you certainly have experience with your debit card long ago and using it does not cause you any problem.
A prepaid card, also called a prepaid card – just like in the case of a debit card, using a prepaid card you will not be able to spend more money than the ones on your account. In addition, the prepaid card uses its “own account” and, as with the credit card, is not linked to our primary account.
This product is ideal for parents who do not want to pay their children traditional pocket money or need to fund their kids’ accounts when they are on a school trip, for example.
A charge card is a similar product to a credit card. The only difference is that the debt incurred in this way is repaid in full, automatically every month, and in the case of a credit card you can divide them into regular repayments (min. 5% of the debt).