Every person at least once in his life had an urgent need for money. In such cases, a credit card with free service may be useful. It can serve as a financial pillow. Read more about how and where to draw up such a financial instrument. Read on.
What's the catch?
In a competitive market, banks are fighting for every customer. Plastic cards have always been a popular product. Therefore, in addition to ordinary credit cards with a monthly service charge, free cards appeared on the market. This product has several advantages, but there are also pitfalls. This can be a percentage for the balance of personal funds in the account, and the minimum amount of monthly replenishment of the account, etc. In order not to overpay the money, you need to study the service contract in detail and not rely only on the words of the manager. Although today, banks are trying to prescribe understandable and transparent conditions so as not to lose customers and not receive negative reviews. In addition, a credit card with free annual service and cash withdrawals is provided free of charge. A financial institution spends money on the production of plastic, which means that it expects a long-term cooperation with the client.
How to issue?
Credit card with free service is provided:
- As a special offer for existing customers of the bank. Typically, such proposals come after registration of any other product. For example, successful repayment of an old loan. In such cases, a regular customer is offered to issue a credit card on favorable terms.
- During the promotion. During this period, you can issue a product on preferential terms, but for this you need to monitor the news of financial institutions.
- Some banks issue credit cards to all customers in a row. Free maintenance is the main advantage of such products. We will discuss them further.
Few numbers
According to statistics, in 2016 the demand for credit cards decreased. According to the Central Bank, on 01.07.15, 223.6 thousand cards were issued, of which 30.7 thousand were credit cards. As of July 1, 2016, a total of 242.4 thousand cards were issued, of which 30.3 thousand were credit cards. Nevertheless, Russians still often use this product.
Credit cards with a grace period allow customers to use the following privileges:
- receive discounts from partners;
- draw up a card with an individual design;
- participate in free insurance programs abroad;
- pay for transportation;
- Use PayPass and PayWave technologies.
Annually, banks develop attractive conditions for plastic holders. Today, credit cards with free service and cash back allow customers not only to use borrowed funds, but also to receive a refund from purchases (up to 10%). At the same time, the conditions for granting loans from year to year do not change much.
So, in 2016, a credit card with free service and a grace period was provided on such conditions:
- Limit - up to 590 thousand rubles.
- The rate is up to 30%.
- Maintenance - 500-2000 rubles., Starting from the second year.
- Free period - up to 60 days from the date of debiting.
- The minimum monthly payment is 10%.
- Cash withdrawal - 7%, minimum 300 rubles.
- Among the bonus programs, the most popular are the accumulation of airline miles and the accrual of points for any purchases.
- 24 hour access to the account.
- Sberbank issues instant credit cards with free annual service. In other institutions, clients have to wait at least 2 days.
Key factors
According to a survey by Profi Online Research, when choosing cards with borrowed funds, customers most often pay attention to the following parameters:
- interest amount;
- service cost;
- limit;
- the presence of a grace period;
- the presence of deposit ATMs;
- the possibility of repaying the loan through post offices, Russian Post.
Let us consider in more detail on what conditions a credit card with free service is provided.
"Renaissance Credit"
In this bank you can apply for MasterCard World and get a renewable limit of up to 150 thousand rubles. for up to 55 days and participate in the bonus program (cash back up to 10%). The product is available to employers, individuals and retirees. To sign the contract, you must provide a passport + another document (certificate, passport, name card of another bank). An application for a card issue can be sent online through the bank's website. Data from the questionnaire is processed within 30 minutes. A preliminary decision is sent in the form of SMS to the specified phone number. It remains only to wait for the operator’s call and visit the bank branch.
"VTB 24"
VTB 24 launched credit cards with free annual service a few years ago. Anyone who wishes can apply for Low Interest plastic and gain access to credit funds in the amount of 350 thousand rubles. Preferential 50 days apply to cash withdrawal operations, and for purchases in partner stores, a cash back of 10% is charged. For the use of credit funds more than 51 days you will have to pay 22%. Free maintenance is provided subject to an annual turnover of funds in the account in the amount of 120 thousand rubles. It will not be difficult to fulfill the specified conditions, especially considering that the card can be connected to several accounts at once. Applications for plastic processing are accepted through the bank's website.
A credit card with a free annual service is intended primarily for non-cash payments. therefore, 4% is charged for withdrawals through an ATM. Cardholders additionally get the opportunity:
- Earn miles with S7 Airlines;
- pay fare in the transport of the capital for special rates;
- participate in charity: when paying for purchases with a card “Tribute to the shrine” in the amount of 2 thousand rubles. a credit institution transfers 30 rubles to the special fund for the construction of churches.
"Alfa Bank"
In this credit institution you can get a PLATINUM card and save 4 thousand rubles. on annual maintenance. In addition to participating in shares of partner banks, plastic holders also receive a credit limit in the amount of 299 thousand rubles. and a grace period of 60 days. An application for card issuance can be sent directly through the website of a financial institution, indicating passport data, as well as SNILS, compulsory medical insurance or certificates.
"UniCredit Bank"
The products of this financial institution are notable for their high processing speed and attractive service programs. An application for a card issue can be made directly through the bank's website, and a decision is made within 3 days. The grace period for these credit cards is formed of two parts:
- for the first month (30 days) from the date of the transaction, a transaction report for the last month is generated;
- The following 25 days are provided for a minimum payment.
Card Benefits:
- It is not necessary to confirm income when making plastic;
- for car owners, football fans and travelers, a cash back is provided when buying souvenirs, paying checks at gas stations and at ticket offices;
- 50% of the limit amount can be cashed monthly.
In case of violation of the terms of the contract, the card is blocked, and a penalty of 20% is charged on the balance of funds. The day after the repayment of all debts and commissions, the account is automatically unlocked. And again, at your complete disposal is a credit card!
Sberbank
With free service, you can issue a payment instrument at the largest financial institution in the country. At the same time, plastic holders are able to:
- accumulate "Thank you" bonuses for purchases in partner stores;
- use credit funds for a moderate fee - 25.9% per annum.
However, funds from a credit card cannot be transferred to other cards.
Citibank
This financial institution issues cards at very competitive rates. You can find a branch of this bank in almost any country in the world, which is especially important for travelers. Let us consider in more detail the most interesting offers:
- “Just a card” is a credit card with free annual service, at which a rate of 22.9% for the use of borrowed funds is provided.
- Citi PremierMiles - this card allows you to redeem accrued miles for airline tickets, services and cash.
- Citi Select - under this program, travelers can get cashback in different categories (shopping, restaurants, etc.).
- Co-branding cards with STOs Neste Oil, Aeroflot, TC Stockmann and operators MTS, Megafon are separately provided.
OTP Bank
In 2015, the financial institution took 7th place in the ranking of Frank Research Group in the number of cards issued. Clients can present a passport and issue a card with a limit of 1.5 million rubles. and free use of funds for 55 days. At the end of the grace period, 29.9% is credited to the balance of the outstanding amount. Transactions on withdrawing funds from an account through an ATM are charged more expensively - from 37%.
Bank customers can also apply for a Touch bank affiliate card and use it as a credit card under the following conditions:
- free issue;
- free maintenance, subject to the availability of a monthly turnover of 30 thousand rubles.
- free recharge;
- grace period of 61 days.
Now consider new credit cards with a grace period and service features.
Installment Card
Recently, a payment instrument for installment purchases has appeared on the market. The grace period is 12 months. The main condition of the program is to make purchases only at partner stores. The most profitable on the market is the Conscience card, according to which Qiwi Bank customers can receive a limit of up to 300 thousand rubles. To date, this product is available only to residents of the capital and Kazan.
Kviki
Kviki is a virtual credit card that is designed to pay for purchases on the Internet for up to 200 thousand rubles. It is produced instantly, for a period of three years. There is no service fee, but the grace period is only 14 days.
Electronic credit card
Soyuz Bank offers its customers credit cards with free annual service, but without a grace period. For using the limit of 300 thousand rubles. will have to pay 24% per annum.
Banks “SMP” and “Smolensky” issue cards with a grace period of 50 days, which applies to operations to withdraw funds from the account, and serve them at the rates of 26.9% and 27.9%. Customers who cannot confirm their income can count on a maximum limit of 80 and 20 thousand rubles. respectively.
Gold credit card
The best offer for obtaining a gold credit card is provided by Zenit Bank. A financial institution offers to issue a card at a rate of 20%, the ability to use a limit of up to 1 million rubles and a grace period of 50 days. Card service charges are not charged, regardless of whether you are actively using it.
Free service is only provided for the first year on the GOLD-cards of Home Credit Bank and Raiffeisenbank. But these institutions charge a large commission. At the end of the grace period, 29.9% and 24% per annum are charged on the balance of borrowed funds. To use the card for free, you need to “lend” 25 thousand rubles a month.