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 profitably.
The credit card is a plastic card with a protective chip and a magnetic stripe. Unlike debit cards, credit cards have cash in the form of a loan. The main advantage of such a card is the possibility of issuing it online on banks' websites without visiting a bank office.
The decision to issue a credit card is received by the client within a few minutes after sending the application for receipt. If approved, card issuance may take up to three days; some financial institutions issue them to customers immediately upon request. To issue a credit card to a borrower over 18 years of age, he must provide the banking organization with his passport data, documents confirming income (reference 2 personal income tax). In some cases, proof of income is not required, and only a passport of a Russian citizen 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 method of lending are:
- the presence 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 lending program. The limit amount is determined by the financial institution based on the solvency of each individual client. This amount is usually renewable - after repayment of the debt, the loan becomes available again. Both the owner and the credit institution may increase the limit on a credit card.
The main disadvantage of a credit card is a high interest rate, a fee for servicing a credit card, a fee for withdrawing cash.
How to choose a credit card?
Before applying for a credit card, it is necessary to carefully analyze the information on banks and various loan programs. The choice of financial institution, its loan product should be the most profitable for the borrower. When selecting a credit card, it is necessary to take into account not only interest rates, but also the size of commissions, for example, for cash withdrawals.
To date, all credit cards have a grace period without interest, but it is calculated in various ways. Before receiving the card, the client needs to know about the method of calculating the grace period of time and its duration.
Favorable cash withdrawal from the card
Terms and conditions for the issuance of funds from the card are prescribed in the contract. Credit cards with a grace period of 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, a certain percentage may be withheld for withdrawal. Issuance of money may not fall under grace periods - this should be clarified with a bank employee. It is usually recommended not to withdraw cash from a credit card - this financial instrument is provided for non-cash payments. Otherwise, you will have to pay a commission.
What is a credit limit?
The credit limit amount is set by the banking institution - as a rule, for each client individually, after studying his credit history and assessing solvency. A credit limit is the maximum amount of a credit card to be used by a borrower. The definition of the limit is based on some rules - the amount of payment cannot be more than 30% of the revenue. In addition, other factors may influence the decision of the bank - the borrower's credit standing, his age, the length of his last employment, the availability of alimony and other debt obligations.
Grace period: how to choose profitably?
A grace period is a specific time period that is set by a banking institution when borrowed funds without interest can be used by a client. To do this, the borrower should pay off all debt in time before the end of the grace period. Typically, the grace period is 50-120 days.
Definition options:
- It is based on the settlement period (30 days), followed by a payment period (up to 20-25 days), during which you should pay off the credit card debt (Sberbank).
- From the first payment (this method is practiced by Alfa Bank).
- Given 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 charging interest on the use of credit funds.
How to increase credit card limit?
After some time using the credit card, the limit on the card either increases automatically, as, for example, in Sberbank, or after contacting the bank. The lender can independently offer the borrower such a service if he fulfills the following conditions:
- active use of the card;
- systematic and timely debt repayment;
- the borrower is not a debtor for other loans;
- good credit history.
Where can I pay by credit card?
There are two ways to pay off credit card debt:
- During the grace period, a one-time payment equal to the entire amount of the debt.
- Mandatory minimum payments, the amount of which is established by a financial institution.
Additionally, commissions may be charged from the client, for example, a fee for servicing a credit card during the year.
Money can be deposited in various ways:
- via online banking;
- through an ATM;
- using the cashier in the bank;
- by bank transfer from card to card;
- using a mobile bank.
Below we will analyze in which bank it is advantageous to take a credit card. To do this, an overview of credit cards and terms of use will be presented.
Tinkoff Platinum
It is interesting to many how profitable to use a credit card of Tinkoff Bank. This credit card is one of the most popular in Russia. It can be ordered online, without income statements. Unlike other cards, the client receives such a card after 2-3 days by courier. In addition to the convenience of registration, regarding a credit card, there are several advantages that make it quite profitable for all categories of users: working citizens, students and retirees.
Firstly, the main advantage is the “Bravo” bonus program, which allows you to receive bonuses of up to 30% for purchases on special offers that can be found on the mobile bank and the Internet. This, for example, well-known cafe networks, online stores, popular ticket booking services and much more. For any other purchases, cashback is 1%. Secondly, you can transfer your Tinkoff credit card debt from another bank - this is the “Balance Transfer” service. When transferring debt, the client receives a grace period of 120 days.
Grace period 50 days from Sberbank
To date, the conditions for using a Sberbank credit card from 50 days of the grace period are as follows:
- age not less than 21 years and not more than 65 years;
- proof of income through reference 2 personal income tax;
- work experience of at least 1 year;
- Russian citizenship.
This type of card differs from others in the presence of a grace period, the essence of which is that within 50 days the possibility of paying off debt is interest-free. After this period, all money received by 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 the grace period is not exceeded.
“100 days without interest” from Alfa Bank
The “100 days without interest” credit card differs from others in that a grace period of 100 days is available on it. Alfa Bank today is one of those banks that issue credit cards with a grace period of more traditional 50-60 days. It will be beneficial for those customers who are accustomed to using the grace period for large and medium purchases, as well as for those who often withdraw cash from a credit card. That is why Alfa Bank’s “100 days without interest” credit card 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 intensified lately last year by offering its customers a Platinum card, which compares favorably with previous bank cards.
The main advantages of such a credit card are:
- low cost of maintenance (499 rubles per year);
- lack of fees for withdrawing cash from a card;
- low interest (from 21.9%).
Halva and Conscience credit cards for bargain shopping
A frequent question is how to use Halva and Conscience credit cards. 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 a product and pay at the checkout with your credit card. And then already repay the loan in installments by crediting your 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 Kiwi Bank partners in installments up to 12 months. The credit limit in this case is from 5 to 300 thousand rubles without a fee for issue 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. She, like the previous version, is absolutely free. To get it, you need to fill out a form on the Internet and after approval visit any branch of this financial institution to receive a card. The card is issued immediately, because it is not registered. For registration only a passport is required. The card provides for cashback - 20%.
“Everything is possible” from “Rosbank”
This credit card combines travel bonuses and cashback. And this means that the possibilities of credit on the card are significantly expanded. The client decides in which of the available categories he wants to receive an increased cashback. In this case, bonuses can partially or fully pay for your vacation.
This credit card has a rather high interest rate. Nevertheless, if you do not violate the terms of the grace period, you can forget about these numbers, since you will not have to pay interest in this case. In addition, the first year card maintenance is free, which allows you to evaluate all the advantages of this product.
The article describes in detail how to use a credit card, and tells which banks provide cards with the most attractive conditions.