Credit card — how to choose

If you like to pay for goods and services card and you will rather buy any thing at once, what will be a long time to save for it, you might want to get a credit card. But before you apply for the release of this card, you need to think carefully about which card you need (profitable) and which Bank you are comfortable and most pleasant to deal with. Consider which credit card to choose, people in different financial and life situations.

Debit vs credit

Outset: in this article we are talking about credit cards. Unlike a debit which is not allowed overdraft (flow over equity), credit cards give its holders the opportunity to use the borrowed money in the amount determined by the Bank (credit limit), the payment of interest for using these funds. But that’s not all: if the with debit cards you can withdraw cash without Commission from ATMs of «your» Bank and banks-partners, for cashing credit card will have to pay a fee.

Now let’s understand what factors influence the choice of a credit card.

Simple and gold

If the fee for privileges for you – the usual case, it makes sense to think about the design of the premium credit cards (Gold or Platinum). It’s not just a sign of status, but also «access code» to a number of services for wealthy clients: enhanced bonus program, a large network of luxury shops, restaurants, hotels, service stations etc. Terms of service the difference between these cards from the normal, first, a lower interest rate on the loan, and secondly, almost all additional services (mobile banking, etc.), for which a simple card holder pays, the owner of premium card free of charge. This is not surprising: the annual service of a gold card is 2-3 times more expensive than ordinary, but platinum is 3-5 times more expensive. So, if you this map only as a sign of status, but you are not sure of the stability of your financial state, it is better to opt for a simple card, than on gold.

Account currency also affects the decision of which plastic card to take. So, if you travel regularly abroad (e.g., to travel) to Europe and pay card, it is better to apply for a MasterCard credit card transactions which occur in relation to the Euro. If you are traveling to other countries, the logical choice would be the Visa is linked to the U.S. dollar. In both cases, of course, may be ruble – just a conversion to the appropriate currency in some countries will be more profitable for you than others.

Debt payment is red

Choosing a credit card, be sure to pay attention to the repayment schedule on the loan. As a rule, it will have to do monthly, but some banks may offer other «rules of the game». Clarify the issue before you apply for a credit card in a particular Bank.

Note that almost all banks provide cardholders the so-called grace period – that is, some time (often 50 days), during which percent for using money on the card account will be waived. Sometimes banks have shares, for example, grace period of 100 days; in this case it is necessary to pay attention to the interest rate. From the same Bank but a different card, it may be higher than with a grace period of 50 days.

As for interest rates, it depends on many parameters. So, the special rate is especially provided, the following holders:
— participant of the salary project (i.e. persons who receive a salary at the expense of debit cards opened in this Bank);
— borrower with a «good» credit history;
— the person who submitted the most complete package of documents.

The documents should stay apart. If you are tempted by the is Bank, offering Bank cards 1-2 documents, look again at the interest rate. Remember that rapid clearance is an expensive loan. It is an axiom that works like a loan in cash or non-cash credit issued on the card account.

So, if the key parameter is the choice for you – the interest rate it is better to choose a Bank or state-owned (Sberbank, Gazprombank, VTB 24), or «native» salary Bank. In both cases, the rate on the loan will be lower than that of banks actively engaged in lending to the population.

If a couple percentage points is not important to you, but you are put at the forefront of originality and uniqueness, you can apply for a credit card with individual design (e.g. Alfa-Bank) or with your favorite characters (for example, Angry Birds PSB).

Bonus, charity, social status

If you belong to any social category (student, pensioner, etc.) and think about how to choose the right credit card, you will be more profitable to get a credit card offered to customers of the relevant category. For example, Bank East Express offers a card of «Pension», and Sberbank, the youth card in the framework of «Respect from Sberbank».

If you want to save on some services (air travel, mobile communications, etc.), it makes sense to issue co-branded credit card. So, mobile operator MTS has co-branded program with Citibank, Sberbank, Raiffeisenbank, Russian Standard, etc. – it enables the holder to accumulate bonus points and thus save on communication services. The same scheme operates in co-branded programs with airlines (Aeroflot, Sberbank, Citibank and Transaero-VTB24, Gazprombank, etc.): paying this with a credit card, you accumulate award miles.

If you want some of the money to give to charity, you can get a credit card with charity program – for example, «give life» savings. Interest rates on these cards are below and with every transaction a certain percentage going in favor of the organization that the cardholder has decided to help financially.

Which Bank is better?

Finally, another important question: credit card what Bank to choose? Now this market leader Sberbank (by a large margin), Russian Standard, VTB24, Bank and Tinkoff Credit Systems. In addition, the top 10 are Svyaznoy, home Credit, Alfa-Bank, ROSBANK and OTP. Leaders have more suggestions, but this does not mean that you should not consider offers from other banks.

Which one to choose, man must decide, guided by the following parameters:
— the interest rate + the presence/absence of other commissions;
— map type (regular or bonus: Visa, Master Card, American Express, Diners’ Club, etc.);
— the ability to service concessional (pensioner, student, participant of the salary project, etc.);
— other terms (payment schedule, grace period, credit limit, the possibility of preferential registration of the second credit card, etc.);
requested the co-branded program, and so on.

In conclusion, we recommend to pay attention not only on advertising but also on the totality of conditions for a particular map. A good choice!

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