«Credit card» is one of the most «mysterious» banking products. There are so many subtleties and nuances, to understand all and at once is not easy. Than overdraft card is different from credit? Where the real benefit, and where a marketing ploy? On what basis are loyalty programs? And most importantly – how to choose the right and best product?
FEEL THE DIFFERENCE
To begin to define what is it and what are the criteria to choose plastic. Between the credit and debit card with allowed overdraft, there is a difference.
In the case of a debit card with allowed overdraft usually we are talking about salary. On this plastic, you can store your own funds. The grace period is usually not provided. Many banks do not charge a Commission for cash withdrawals, although in the case of plastic with the borrowing of funds on the account, this operation always paid.
To use their own funds deposited to a credit card, not. Even if you make more money than is required to repay the debt, the surplus will be credited to a separate account, from which money will be spent only for the repayment of debt. Use them for purchases and cash withdrawals impossible.
The rest of the map can be divided according to the class of service (standard, premium) and the availability of additional possibilities (discounts, bonuses).
DECIDE THE ORDER
Why do you need a credit card? How much borrowed money you want to? What amount are ready to spend monthly on the service contract? Are you planning to use it abroad? Depending on the answers to these questions, select the type of plastic. And the card type determines the costs.
Periodically take small amounts «to pay»? You need a credit card with the longest grace period.
Like discounts? A product of the Bank, which provides an interesting loyalty program.
Would you prefer to be served by the upper class? Make preference deals.
Create a reserve for a «rainy day»? Take a standard credit card without any additional services and fees are minimal.
Go abroad very often? Then the payment system should be international (Visa, MasterCard, American Express).
Need cash? Then the credit card is not suitable. It is intended for making cash payments. For cashing levied sensitive to the purse of the Commission.
THE CHOICE OF THE BANK
It’s better to choose a card of the Bank whose services are used. For example, in the Bank where you opened a Deposit or where you are a payroll customer.
Note the degree of convenience of use of Bank services, the number of ATMs, a variety of funding methods, the availability of Internet banking etc.
Many banks issue plastic without the application client. For example, if you took a consumer loan and pay it regularly, then for «good conduct», the Bank may on its own initiative to issue you a credit card. It is usually sent by post. To activate simply call the Bank and call the code word.
Don’t trigger your «gift». First, thoroughly examine the terms and conditions and tariffs. If you are satisfied, use on health. In the absence of arrears the Bank will periodically increase the limit.
STUDY OF THE CONDITIONS OF SERVICE AND TARIFFS
If in the case of conventional loan costs can be limited to the interest rate, the use of plastic always involves paying additional fees.
For example, the preferred card «VTB 24» «Privilege» has a tempting interest rate of 18%. But the Commission for annual service can be more than 10 thousand rubles.
Do not be lazy to examine the tariffs. The interest rate is the case if not the tenth, it is certainly not the first. The Bank may charge a fee for annual service, withdrawal of cash from their own and other ATMs, the formation of statements, balance inquiry, insurance, utilities payments, payments on the card, and many other operations.
If it is difficult to navigate, return to step one and again indicate the purpose of credit cards. Then compare the rates of desired operations.
Find out the conditions of use of grace period and minimum monthly payment, the of payment methods.
Even if you are confident in their ability, pay attention to the penalty clause. In different banks the degree of «severity» of the penalties of delay varies.
Do not pass up studying all card products of the Bank. Is that the ideal is exactly the type of plastic that you initially thought to be unsuitable.
REQUIREMENTS FOR THE BORROWER
Credit card is also a loan. So the client must be trustworthy and solvent. The more reputation in the direction of these two indicators, the cheaper the product. «Standard set» of parameters of the ideal borrower:
Russian citizenship and registration in the region of the Bank;
age from 25 to 40 years;
official employment, sufficient work experience in a stable company, a good «white» salary, in-demand specialty;
the presence of inquiries on incomes.
If you plan to frequently use a credit card in another country, then make a map in a foreign currency. Or get two: in rubles and in US dollars (Euro). Otherwise you will lose the commissions for currency conversion and exchange rate difference.
In shopping malls there are racks which are operated by the representatives of the banks. They can apply for a credit card just for 10-15 minutes without inquiries on incomes. Service is appropriate in two cases:
you have a bad history in credit Bureau;
the money is needed so urgently that the price doesn’t matter.
No other reason. First, the security level of the plastic below. Second, interest rates are much too high.
CONNECTION BONUSES AND LOYALTY PROGRAMS
Don’t hurry to skip this step. It is clear that bonuses are a marketing ploy and substantial savings bring rare. But every penny counts. Therefore, we still will tell, what interesting possibilities you can use.
CASH BACK (CASH BACK)
If the connected Cash Back option when paying by card, the Bank returns to the account a certain percentage of the purchase amount. It is necessary to distinguish between Cash Back and reward programs that 1 bonus is not always equal to 1 mu ruble. Cash Back is not bonuses and points, namely money. And it certainly can affect your choice.
«Map with the use of Gold» (returns 1 to 3% of the purchase amount) and «Platinum …» (2 to 3%) from the Bank «home Credit».
CASH BACK (MasterCard) from Citibank (returns from 1 to 5% of purchase amount depending on outlets).
BONUSES AND DISCOUNTS
When paying for purchases with plastic the Bank charges a certain percentage of the purchase amount. Contributions accumulate on a special account. In the future you will be able to use them as discounts. As a rule, can be obtained only in certain outlets.
Discounts can be provided without complex accumulative system of bonuses – just when paying by card in trade outlets – partners of the Bank.
Program «Thank you» from Sberbank. When you pay for goods and services at any retail outlet of accrued bonuses in the amount of 0.5% of the purchase amount. They are stored in a special bonus account. Further bonuses can be used as a discount when you purchase in trade outlets – partners of the Bank.
The product «M. Video BONUS» against «Alfa-Bank» allows you to collect bonuses when you buy in stores «M. Video» – 1 bonus ruble 20 «cash» rubles. With the accumulation of 500 bonus rubles and more you can use them as discounts.
THE SAVINGS ON TRANSPORT COSTS
The principle is the same as in the accumulation of bonuses for discounts, not only piling up the bonuses or the points and miles/kilometers.
Product Aeroflot (MasterCard) «Alfa-Bank». For each 30 rubles of the amount of the purchase is charged from 1 to 1.75 miles (depending on the type of plastic). The accumulated miles can be used for payment of partner companies, purchase a premium ticket or upgrade.
«VTB24 — RZD» (Visa) of «VTB 24». 1 point for every 50 rubles at payment of goods and services by card. Points can be redeemed for travel, if you are using the services of the Federal passenger company (a subsidiary of JSC «RZD»).
Also becoming popular credit card that you can pay for transport services underground and surface transport. Examples: «Transport map» from the «Renaissance Credit», «Metacarta» «alpha Bank».
Differ from the standard that is intended to pay for certain types of services.
«WebMoney MasterCard Standard», Bank «Russian Standard» — automatic binding to the e-purse WebMoney to transfer funds from card to wallet and back. When paying by card gets the bonus of the units of WebMoney.
«Ingosstrakh» (MasterCard Standard) Soyuz Bank to pay for the services of Ingosstrakh.
Holders of preferred credit cards offer additional exclusive terms, and provided high quality service in Russia and abroad. These cards emphasize the high social status of the holder.
The «privilege» of «VTB 24», a limit of up to 3 million rubles, a choice of three currencies, special deals and discounts when making purchases from partners of the Bank, urgent (within days) replacement card when necessary, issuing additional cards.
Platinum Visa credit card of alpha Bank: special discounts and offers (in Russia and abroad), additional fraud protection, dedicated line telephone advice centre, Bank, insurance purchases for 90 days and increase the warranty time of goods paid for with its help, medical and legal support holders plastic.
HOW TO SAVE MONEY?
Not snimayte cash