How profitable is it to use a credit card? Overview of credit cards and terms of use

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

This financial instrument is used today by people all over the world. Getting a credit card is quite simple, but not everyone knows how to use a credit card correctly and how to benefit.

A credit card is a plastic card with a security chip and a magnetic stripe. Unlike debit cards, credit cards contain money in the form of a loan. The main advantage of such a card is the possibility of issuing it online on the websites of banks without visiting the bank office.

The decision to issue a credit card comes to the client within a few minutes after sending the application for receipt. If approved, issuing a card can take up to three days, some financial institutions issue them to customers immediately upon application. A borrower over the age of 18 for issuing a loancards must provide the banking organization with the data of his passport, documents confirming income (certificate 2 of personal income tax). In some cases, income verification is not required, and only a Russian citizen's passport is needed. In the article we will try to find out which credit cards are the most profitable in Russia.

Credit card benefits

The main advantages of this lending method are:

• availability of bonuses, discounts, promotions from partners of a financial institution;
• convenient payment for goods and services;
• cashback;
• Grace period - interest-free use of borrowed funds.

A credit card is a good alternative to a consumer credit program. The amount of the limit is determined by the financial institution based on the solvency of each individual client. This amount is usually renewable - after the debt is repaid, the loan becomes available again. Both the owner and the credit institution can increase the credit card limit.

The main disadvantage of a credit card is the high interest rate, credit card service fee, cash withdrawal fee.

How to choose a credit card?

Before applying for a credit card, you must carefully analyze information on banks and various loan programs. The choice of a financial institution, its loan product should be the most beneficial for the borrower. When choosing a credit card, it is necessary to take into account not only interest rates, but alsothe amount of commissions, for example, for cash withdrawals.

Today, all credit cards have a grace period, but it is calculated in different ways. Before receiving the card, the client needs to find out about the method of calculating the grace period and its duration.

Favorable cash withdrawal from the card

The rules and conditions for issuing funds from the card are prescribed in the contract. Credit cards with a grace period for cash withdrawals are extremely rare. Usually, a commission is charged for cash withdrawals - 3-5% of the amount or more. If funds are cashed out using the terminals of other banking organizations, then a certain percentage may be withheld for withdrawal. The issuance of money may not be subject to grace periods - this point should be clarified with a bank employee. It is usually recommended not to withdraw cash from a credit card - this financial instrument is intended for non-cash payments. Otherwise, you will have to pay a commission.

What is a credit limit?

The amount of the credit limit is set by a banking institution - as a rule, for each client on an individual basis, after studying his credit history and assessing solvency. A credit limit is the maximum amount on a credit card that a borrower can use. The definition of the limit is based on some rules - the amount of the payment cannot be more than 30% of the income. In addition, other factors may also influence the bank's decision - the credit reputation of the borrower, his age, the duration of the last employment, the availability of alimony, and others.debt obligations.

Grace period: how to choose the best?

Grace period is a certain period of time, which is set by a banking institution, when the client can use borrowed funds without interest. To do this, the borrower should repay the entire debt in a timely manner before the end of the grace period. Usually the grace period is 50-120 days.

Definition options:

1. Based on the billing period (30 days), followed by a payment period (up to 20-25 days), during which the credit card debt (Sberbank) should be repaid.
2. From the first payment (this method is practiced by Alfa Bank).
3. Including each financial procedure (Moskomprivatbank).

The borrower needs to pay off credit card debt in a timely manner before the end of the grace period, which will eliminate the likelihood of interest on the use of loan funds.

How do I increase my credit card limit?

After some time of using a credit card, an increase in the limit on the card either occurs automatically, as, for example, in Sberbank, or after contacting the bank. The lender can independently offer such a service to the borrower if he fulfills the following conditions:

• active card usage;
• systematic and timely repayment of debt;
• borrower is not a debtor for other loans;
• goodcredit history.

Where can I pay with a credit card?

There are two ways to pay off credit card debt:

1. During the grace period, in a single payment equal to the entire amount of the debt.
2. Mandatory minimum payments set by the financial institution.

Additionally, the client may be charged commissions, for example, a fee for servicing a credit card during the year.

Money can be deposited in various ways:

• through internet banking;
• via ATM;
• using a cash desk in a bank;
• via bank transfer from card to card;
• using mobile banking.

Below we will analyze in which bank it is profitable to take a credit card. To do this, an overview of credit cards and their terms and conditions will be provided.

Tinkoff Platinum

Many people are interested in how profitable it is to use a Tinkoff bank credit card. This credit card is one of the most popular in Russia. It can be ordered via the Internet, without income statements. Unlike other cards, the client receives such a card in 2-3 days by courier. In addition to the convenience of registration, there are several advantages regarding a credit card that make it quite profitable for all categories of users: working citizens, students and pensioners.

Firstly, the main advantage is the bonus program "Bravo", which allows you to receive bonuses up to 30% for purchases onspecial offers that can be found in mobile banking and the Internet. These are, for example, well-known cafe chains, online stores, popular ticket ordering services, and much more. For any other purchases, the cashback is 1%. Secondly, you can transfer your Tinkoff credit card debt from another bank - this is the Balance Transfer service. When transferring a debt, the client receives a grace period of 120 days.

Grace period 50 days from Sberbank

Today, the conditions for using a Sberbank credit card with a 50-day grace period are as follows:

• age not less than 21 and not more than 65;
• confirmation of income through a certificate of 2 personal income tax;
• work experience of at least 1 year;
• Russian citizenship.

This type of card differs from others by the presence of a grace period, the essence of which is that within 50 days the possibility of repaying the debt is interest-free. After the expiration of this period, all money received on a credit card will be subject to interest. Thus, it is beneficial to use a Sberbank credit card as a means of paying for purchases, but only if you do not exceed the grace period.

"100 days without interest" from Alfa Bank

The credit card "100 days without interest" differs from others in that a grace period of 100 days becomes available on it. "Alfa Bank" today is one of those banks that issue credit cards withpreferential period of more traditional 50-60 days. It will be beneficial for those customers who are accustomed to using a grace period for large and medium-sized purchases, as well as for those who often withdraw cash from a credit card. That is why the Alfa Bank credit card "100 days without interest" can be considered one of the most profitable.

Platinum card from Russian Standard Bank for withdrawing money without commission

In terms of providing credit card services, this financial institution has also become more active late last year, offering its customers a Platinum card, which compares favorably with previous bank cards.

The main advantages of such a credit card are:

• low maintenance cost (499 rubles per year);
• no fees for cash withdrawals;
• low interest rates (from 21.9%).

Credit cards "Halva" and "Conscience" for profitable purchases

A frequent question is how to profitably use credit cards "Halva" and "Conscience". It is worth noting that these are such credit cards, thanks to which you can pay for services and purchase goods in installments up to 1 year. For example, to purchase a refrigerator, you just need to select an item and pay for it at the checkout with your credit card. And then already repay the loan in parts by replenishing the credit card account. The savings are quite substantial.

Credit card from "Kiwi Bank" "Conscience" allows you to purchase more than 20,000 thousand services and goods from partners of "Kiwi Bank" in installments up to 12 months. Credit limitat the same time, it ranges from 5 to 300 thousand rubles without a fee for issuance and annual maintenance. For registration, you just need to fill out an online application, after which the card will be delivered to the client at home.

A similar card is Halva from Sovcombank. It, like the previous version, is absolutely free. To get it, you need to fill out a questionnaire on the Internet and, after approval, visit any branch of this financial institution to receive a card. The card is issued immediately, since it is not personalized. For registration, only a passport is required. The card provides cashback - 20%.

"Everything is possible" from "Rosbank"

This credit card combines travel bonuses and cashback. And this means that the possibilities of lending by card are significantly expanded. The client himself decides in which of the available categories he wants to receive an increased cashback. At the same time, you can partially or fully pay for your vacation with bonuses.

This credit card has a rather high interest rate. However, if you do not violate the terms of the grace period, you can forget about these figures, since in this case you will not have to pay interest. In addition, the first year of card service is free, which allows you to evaluate all the benefits of this product.

The article details how to benefit from a credit card and tells which banks provide cards with the most attractive conditions.