What a credit card looks like. Credit card and features of its use. Credit card conditions

Credit cards

Credit cards are payment cards that allow the client to pay for goods and services at the expense of the bank. In the classical sense, credit cards do not provide for the presence of the client's own money on them. In Russia, such cards mean, among other things, debit cards with an overdraft (the holder can use both his own and borrowed funds). According to experts, overdraft cards in the Russian Federation is used by more than a third of the population.

In determining credit limit the bank takes into account various characteristics of the future borrower: age, income level, credit history, etc. When initially issuing a card, banks, as a rule, do not set large credit limits. If the holder complies with the rules for using the credit card (mainly fulfills his obligations to repay debt in deadlines) and is actively paid by it, then the credit limit can be increased many times, either at the initiative of the bank or at the request of the client. When making a decision to increase the limit, banks assess the nature of the operations performed. A typical operation should be the purchase of goods with a card. Cash withdrawals on credit are not encouraged (by the way, withdrawal fees are very high and can reach 5%, and therefore it is better to limit yourself to non-cash payments).

It is also essential that the card has a grace period - a time period after making a purchase, during which you can reimburse expenses on the card without paying interest for the use of borrowed funds.

A credit card should not be equated with a consumer loan. No bank will issue a consumer loan for a loaf of bread, and with a credit card you can easily afford "bread on credit".

A card loan usually lasts no more than two years (as opposed to consumer loans, which can be issued for up to seven years). This term is determined by the obligation to repay monthly an amount not less than a specified percentage of the debt (usually 5-10%) plus accrued commissions and interest. Non-payment minimum payment- this is a violation of the contract, delay and damage to credit history.

Are you planning to get a bank card or are you already using it? Learn about the main differences between debit and credit cards

Credit and Debit Cards: Key Differences. Photo: behance.net

Perhaps the most popular banking service for ordinary citizens is payment card... Their number in Ukraine is constantly growing, and customers themselves are increasingly using the card not only for withdrawing cash from an ATM. Wanting to get this banking product, you can often face the question: what kind of card do you want to issue? Here we will try to briefly explain the key differences between the two main types of cards - debit and credit.

Debit bank card - what does it mean?

So the debit is bank card which is tied to current account the client in the bank and allows him to make settlements only for the amount that is on this account at the time of purchase. That is, in order to receive a debit card, the client first opens an account, then deposits money into it, and only after that he can use them in a non-cash form. In fact, such a card is your "plastic" wallet.

Using a debit card, you can withdraw cash from an ATM, pay for purchases in retail and online stores, including foreign ones, and transfer funds to other cards. Banks charge various commissions for servicing debit cards: this can be a fee for issuing the card itself, for annual account maintenance, for withdrawing cash from ATMs (both in their own and other banks). At the same time, a large number of services on a plastic card are provided free of charge (SMS informing, Internet banking).

Debit cards are classified by payment systems - international and local: Visa, Mastercard, American Express, UnionPay, PROSTIR. Each of the payment systems has several subspecies characterized by limited or extended functionality. For example, sometimes it is impossible to pay for purchases via the Internet, as well as to make purchases abroad, with Visa Electron and Maestro “plastic”. But their maintenance per year will be much cheaper. Against, Visa cards Classic or Mastercard Standart are universal. With their help, you can make online shopping and safely take with you on a trip - these cards are accepted all over the world.

The main elements of a plastic card. Photo: Investor100

A type of debit card is a salary card. It is issued within the framework of the so-called "salary projects". This is an agreement between the bank and a certain organization, according to the terms of which the bank draws up to all employees of this enterprise plastic cards and maintains the corresponding accounts. The client's salary is transferred to them. Often salary cards are issued free of charge, but their functionality may be limited (for example, they cannot be used in other countries).

An overdraft is often provided for salary cards - that is, the opportunity to go into the red. Do not confuse such a card with a credit card - in this case it is absent Grace period and the interest rate. To repay an overdraft, banks set a maturity of up to two months on average. If the card is issued under the conditions salary project, then the amount of the overdraft is usually some percentage of the salary or is expressed in the amount of up to two salaries. Thus, such a service can be considered as contingency insurance.

What does credit card mean?

What is credit card? This is a completely different banking product from a debit card. The owner of the "credit card" can also use it to pay for purchases in stores and on the Internet, to withdraw cash from an ATM, to transfer money to another user - but all this is at the expense of the bank. That is, the client has the opportunity at any time to use the credit line provided by the bank, and return this money to the account later.

A credit card differs from a debit card in its characteristics. And when registering just such a product in a bank, it is necessary to clarify all the nuances so that later not to get into an unpleasant situation. The main characteristics of a credit card are credit limit, grace period and interest rate. A credit limit is the maximum amount of money that a client can spend from a card for a certain commission - an interest rate. In Ukrainian banks, it ranges from about 25% to 48% for loans in hryvnia. The grace period is the time during which to use credit funds possible without interest. This period is usually 30 to 100 days.

When issuing a credit card, the client should familiarize himself with all the additional commissions that will have to be paid to the bank in addition to interest rate... This is a commission for withdrawing money from an ATM from a credit card, for transferring money, a monthly commission (a percentage of the outstanding balance). At the same time, there is usually no commission for non-cash transactions in trade and service enterprises.

The number of payment cards in the world is constantly growing. Photo: dollarsandsense.sg

Thus, a credit card is a very convenient payment tool, but also quite expensive. The faster you manage to pay off the amount spent, the less you will pay for using the bank's money. You can pay off your credit card debt simply by replenishing its account at an ATM or bank cash desk.

Credit cards, like debit cards, can be of different payment systems, registered or unnamed, equipped with a magnetic stripe or chip, with support for contactless technology.

PAYSPACE MAGAZINE HELP

According to the results of the first half of 2017, most of all in Ukraine took place in the trading network (536.9 million transactions) - 50.9% of the total, but in monetary terms (UAH 119.3 billion) it was only 34.3% of transactions. Large sum(UAH 131.4 billion, or 37.8%) in monetary terms fell on transactions on the Internet. Although in terms of the number of operations (433.8 million units), this segment ranked second with a share of 41.1%. In third place in terms of the volume and number of transactions are transfers from card to card, in fourth - transactions in self-service devices.

Credit card is payment instrument for settlements within the amount that the bank has provided to the client. This amount is issued on the basis of a specific loan agreement. The loan amount is set individually in each case.

What does it look like

Most of the capable population knows what a bank credit card looks like. It is a plastic rectangle with a unique 16-digit number, microchip, name and surname of its owner, the logo of the issuing bank and security mechanisms. On the back there is a magnetic stripe and a security code.

The number is put on the card using the method of convex embossing (embossed) for the purpose of it was impossible to make a copy (slip) from it.

How it differs from a regular loan

A credit card differs from a regular loan in that its holder is provided renewable credit line , which he spends at any time, at his discretion. Repayment occurs in any order, provided that the amount is not less than the established minimum payment. Remuneration (interest) for the use of funds is not charged for the entire limit, but only on its outstanding part.

As for a regular loan, it is provided in full, immediately after the signing of the agreement. The entire amount received is subject to interest. Payment is made according to the repayment schedule, delays are not allowed.

Advantages and disadvantages

The benefits of a credit card include:

physical safety of money;
no need to carry cash with you;
the ability to pay for any goods and services if the counterparty has a special terminal;
repeated use of the loan without concluding additional agreements. This is due to the revolving credit limit;
availability of a grace period during which interest is not charged;
provision of bonuses, discounts and other loyalty programs;
automatic conversion of rubles to foreign currency that allows you to make payments abroad;
the ability to export any amount of money abroad without a declaration;
credit limit management via mobile applications. Most banks offer this service.

The disadvantages of the card are:

high interest rate (higher than for a standard loan);
the risk of spending more than the planned amount;
commission fees that increased monthly payment;
unnecessary services imposed by the bank.

Service fees and cost

The service price is set by the lender and depends on the size of the limit. Additional commissions also affect the price. They are charged in such cases as:

cash withdrawal from an ATM or bank cash desk;
getting additional services(SMS notification, online banking, limit renewal, etc.);
availability of loyalty programs. The more there are, the more expensive is the service of the card;
blocking, unblocking and re-release of plastic in case of its loss.

This list of fees is not exhaustive. Each bank independently determines the cases of their payment, therefore, before signing, you should carefully study the content of the agreement.

In addition to commissions, interest and fines are levied. For example, for late payment, insufficient repayment amount or exceeding the allowable limit when cashing out funds.

Cash withdrawal

The cardholder can withdraw cash at the cash desk or ATM. The conditions regarding the withdrawal of money are contained in the agreement. There is often a ceiling on the amount that can be withdrawn within 24 hours or 30 days ... To eliminate this limitation, you must contact the bank, present the card and the holder's passport. The procedure takes 1-2 hours. For unlimited cash withdrawal, it is enough to write a statement.

Withdrawal paper money taxed commission fee... You can avoid it by using cashless payments.

Сash back

This is the name of the operation for the return of part of the amount spent on payment for goods or services. Refund (cashback) is determined as a percentage. Some banks offer cash back in the form of points or bonuses. As they accumulate, the holder can pay with them in the same way as money. You can get this service only in retail outlets or companies cooperating with the lender.

The disadvantage of cash back is that, if available, increased rates by interest, thus losing its meaning as a loyalty program. Because with its help the client no longer saves, but rather loses money.

How to use effectively

Effective use of the card assumes compliance with the following rules:

avoid delays in repayment and monitor the duration of the interest-free period;
track the amount of debt using SMS notifications;
do not exceed the maximum allowable amount when cashing out;
clarify the list of additional services and, if possible, refuse most of them, keeping only the necessary ones;
carefully study the terms of the contract when signing, in order to avoid further errors and misunderstandings;
spend borrowed funds in exceptional cases, avoiding sudden costs for insignificant purposes.

Useful video on how to use credit cards correctly:

How to pay off debt

You can pay off the debt on a "credit card" in the same ways as on a regular loan:

at the bank's cash desk in cash;
in the self-service terminal;
at a cash-in ATM;
through online banking.

The monthly payment includes interest on the loan, part of the principal, interest and penalties for delay, if any. The payment is made in fixed amount or in percentage to the remainder of the limit at the end of the period.

Conclusion

The credit card is increasingly replacing small consumer loans with cash. It allows you to spend funds without agreeing on goals with the bank. The renewal of the limit opens up great opportunities for its user. However, before signing loan agreement with the bank, you should analyze your financial condition... Since its presence presupposes financial solvency and the possibility of "painless" debt repayment. If the article was useful to you, be sure to share it with your friends!

4.5 (90%) 4 vote [s]

Surely everyone has heard more than once about the offers from banks about the possibilities to issue a credit card for free, but not everyone is aware of what benefits they can give and how to use them. For many, one word "credit" is immediately associated with "robbery". In fact, everything is a little different. We suggest you read this article to the end to learn about all the intricacies of credit cards and thereby improve your financial literacy.

1. Credit card - what is it in simple words

Credit card(abbreviated "credit card", from the English "credit card") is a bank card that allows you to make purchases automatically by borrowing cash the bank has funds

"Borrowing" of funds occurs during the purchase operation. Each card has a credit limit that you can use. Usually this amount is limited to a range of up to 300-500 thousand rubles, depending on the type of credit card, your income and bank. They are issued for a period of 2 to 5 years after which they are automatically reissued.

Each bank has its own terms and conditions. There is no single standard by which credit cards work. We will look at the most common conditions.

Grace period by credit card what is it

One of the advantages of credit cards is the ability to take advantage of grace period(or grace period), which allows you to return money to the bank without paying any interest and other overpayments. How much they took - so much returned. Everything is fair and without cheating. Each bank sets its own grace periods (some have more, some have less).

Note

The grace period applies only to payments made by cashless payments... When withdrawing funds from an ATM, a commission will be charged (in most cases 3-5% of the amount). Therefore, it is better not to withdraw cash from a credit card, as it is extremely unprofitable.

There are different types of credit cards, which, depending on their status, provide different options for making payments. They are usually classified as follows:

Classic (Classic)
Gold
Platinum

The most important parameters are:

Maximum loan amount;
Duration of the grace period;
Card maintenance cost;
Bonuses and cashback when paying;
The interest that must be paid to the bank if they have gone beyond the grace period;

2. Advantages and Disadvantages of Credit Cards

Banks willingly issue credit cards to almost every person in the hope that he will forget or will not be able to make a payment on the loan taken on time. In this case, the bank will earn good money (commissions, interest for the period, etc.).

However, credit cards still have many undeniable advantages.

The ability to make purchases instantly without having own funds without additional visits to the bank.
Solid bonuses and cashback from the bank. Thus, encouraging to use these cards and spend more.
The presence of a grace period during which you can pay nothing for using the loan
It is convenient to pay for purchases abroad. Plus, this is your extra money just in case.
The ability to use the credit limit again and again
There are free credit cards that do not require an annual service fee

The ability to quickly take out a loan without interest is the motivation to do so. Moreover, this feeling is more developed among those who do not have free money, that is, those who use credit cards
The bank is interested in taking commissions, interest and so on from you. Therefore, you need to be careful when signing the contract and further servicing the card.
In order not to pay fines and interest, you need to remember about making a payment.

3. The most profitable credit cards

There are a lot of offers on the credit card market. This is good, because due to high competitiveness, really good propositions for the end user. Consider the best credit cards for 2019.

3.1. Tinkoff credit card

3.2. Credit card Halva by installments (SovcomBank)

4.5. Differences between a credit card and a consumer loan

Which is better: a credit card or a consumer loan? There is no single answer to this answer. Depending on the situation, both the first and the second option may be better.

Let's list the main differences between a credit card and a loan:

You can take loans regularly without going to the bank
You can take any amount not exceeding the established limit
There is a grace period for which you do not have to pay interest. Have consumer credit interest immediately starts working against you
Possibility of quick repayment without going to the bank. When repaying a regular loan, you need to go to the bank, which creates inconvenience

4.6. Is it possible to withdraw money from a credit card

You can withdraw money from a credit card through an ATM. But a commission is taken for this. However, on the market you can find cards that allow you to do this without overpayments. To do this, you need to look specifically for such proposals.

Related entries:

Many owners of a means of payment are interested in what a credit card is, what it looks like, and how best to use it. Credit cards are ubiquitous, they have different conditions, but they work according to the same principle. What should everyone who has decided to purchase this financial instrument be aware of?

What does a credit card look like?

Credit card of TCS bank.

A credit card is a rectangle made of plastic containing a chip with information about the owner's account. The dimensions of the plastic media by standards are 85.6 x 53.98 x 0.76 mm.

The front side contains the following information:

card number;
name and surname of its holder, if the card is personal;
the term until which it is valid;
the logo of the payment system used;
name of the issuing bank.

The reverse side contains:

information about the bank;
place for the client's signature;
security code used when shopping online;
magnetic stripe containing card data.

The design of the plastic carrier is determined financial institution that emits it. With some credit cards, you can choose the design yourself.

Types of credit cards

The largest payment systems.

Credit cards are of the following types:

Classic. Have standard lending terms.
Gold. They have an increased limit.
Platinum. Additional services are available for them.
Co-branded. Allow you to receive various bonuses when using, for example, a discount or points accrual.

The types of payment systems can also be different. The most popular in Russia are Visa, MasterCard (Maestro).

Credit card conditions

Offer from Tinkoff Bank.

If you give a credit card the definition of the most in simple words then this is a variety bank lending, in which a person gets access to money through a payment instrument, a plastic carrier. This view the loan refers to revolving, that is, the bank's funds can be used repeatedly.

Maximum amount borrowed money is determined during the consideration of the application and depends on the following factors:

type of card;
the amount of income of a potential client;
history of previous loans.

The interest rate for the use of borrowed funds in each bank is different. Here is an example of 5 popular banks and lending conditions in them.

When issuing a card, a specific rate is set after assessing the client's solvency and is fixed in the contract.

Fact! In most banks, the interest for using cash is slightly higher than for non-cash transactions.

Almost all credit cards have a grace period during which you can use borrowed funds without paying interest. To do this, you need to return the money spent to the account before its expiration. The duration of the interest-free period is on average 50-55 days, depending on financial policy jar.

The grace period has its own nuances:

For cash withdrawals at most institutions, this option does not apply.
The interest-free term is calculated differently in each bank. It is usually calculated from the date of purchase or from the date of receipt of the account statement.

By regularly returning the funds spent to the card within the grace period, you can use the borrowed funds without paying interest.

Offer from the Renaissance bank.

In the case when it is impossible to pay off the entire amount of the debt, it is necessary to make a mandatory minimum payment. As a rule, its size is 5-10% of the funds used.

Most banks use credit cards to make the following payments:

Cash withdrawal fees usually do not exceed 2%.
Card service per year, usually from 150 to 560 rubles.
Penalties for non-compliance with the terms of use are specified in the contract.
Additional services, such as SMS informing.

There are cards with free annual service and SMS information, there are those where even the Internet bank is connected for a fee. The cards are valid for 3 years in most institutions. Next, the credit card is closed or reissued.

Borrower requirements

Loan program from Alfa-Bank.

There are standard bank requirements that must be met in order to receive credit card:

Having citizenship, for example, Russian.
Registration. Can be permanent or temporary.
Age must be within the range specified by the institution. Usually it is from 21 to 65 years old, but there is special programs for young people from 18 years old and for the elderly up to 75-80 years old.

All cards without exception are issued upon presentation of a passport. The following documents may also be required:

second document for identification (for example, international passport);
income statement;
pension card or student card.

The exact list of requirements for the client should be clarified on the bank's website, or by calling the hotline.

How to get a credit card?

Co-branded TCS cards with bonuses.

In order to issue a card, you must fill out an application form. This can be done as follows:

online;
at the bank office.

If the bank approves the application, an agreement is signed and the plastic carrier is handed over.

Financial institutions can offer to receive the card itself directly in one of the following ways:

at a bank branch;
use courier delivery to your home;
by mail.

Nuance! Some institutions, after the activation procedure, withdraw funds to pay the commission for the annual card maintenance.

Debt repayment methods

Offer from Rosselkhozbank.

Credit card debt is repaid in the following ways:

Any other card.
Bank transaction.
Through a payment terminal.
Electronic money.
By depositing funds to the cashier of a financial institution.

For some methods of transferring money, a commission may be charged. This nuance should be clarified in advance so that the amount of the debt to be repaid does not decrease by the amount of the commission.

Advice! When choosing the option of depositing funds, their dates of receipt should be calculated. The debt is considered settled after the money is credited, and not from the time of payment. Therefore, in order to avoid penalties, you should not do it at the last moment.

How do I use a credit card?

Offer from VTB 24.

You can use a credit card in this way:

Paying her when shopping is a non-cash payment.
Cash out through an ATM is a cash transaction.

To carry out transactions with the card, it is convenient to connect to the Internet bank or use mobile application... With their help, the following functions become available:

obtaining information about the amount of available funds;
the ability to control payments;
making money transfers;
payment for various services;
connection of additional options.

It should be remembered that when making any transactions on the card, you must not tell anyone the PIN-code and lose sight of the plastic carrier. This is important for the safety of the client's money.

Features of credit cards

Cashback offer from RaiffeisenBank.

Plastic cards have the following advantages:

It is universal means of payment, with which you can pay for any services or goods or by wire transfer or in cash.
You can make purchases without even having your own funds.
When traveling abroad and paying in another currency, an automatic conversion is performed.
If there is a grace period, then you can use the bank's funds without interest.
Security. If the card is lost, the account is blocked and the funds are saved.
This type of loan can be used repeatedly.
Many banks, for example, Tinkoff bank, offer cashback (refund of money spent by the client).

When issuing a credit card, you must carefully study all the nuances that may arise when using it. This will help to avoid unnecessary overpayments and will facilitate its most effective use.