Credit card wiki. What is a credit card and how to use it? What is the difference between bank cards
Long gone are the days when friends and colleagues borrowed money to pay. Indeed, nowadays almost everyone can get a credit card. At the same time, in order to avoid unpleasant surprises, it is important to understand what a credit card is and how to use it wisely.
A credit card is a plastic bank card with a certain credit limit. During the grace period, money can be used without interest, but if you do not return it on time, you will have to “cover” not only the debt itself, but also penalties. In the modern world, credit cards have seriously squeezed consumer loans and have become an excellent alternative to “payday loan money”.
Credit, debit or overdraft card - what's the difference?
If the differences between a debit and a credit card are understandable - the first is intended for “storing” and using exclusively personal funds, and the second allows you to “borrow” from a bank, then many people often confuse credit cards and debit cards with overdrafts, getting into unpleasant financial situations and substantially overpaying for a loan. That is why it is important to know what the fundamental difference between them is.
So, an overdraft card is a debit card with an open credit line. But it, unlike credit, is intended primarily for storing personal funds. And this is not the only thing that distinguishes them. It is important for the owner of a particular card that an overdraft does not imply the existence of a grace-free interest-free period - in any case, a percentage is taken for using a loan. In addition, the debt on the overdraft card is written off as soon as the money is in the account of its owner - in automatic mode.
Kinds
In order to get a credit card on the most favorable terms, it is important to know what they are. Today, there are several classification criteria:
- by type - standard (with a magnetic stripe) and chip (with a higher degree of protection) credit cards are allocated;
- according to the payment system, credit cards are divided into international (for example, Visa, MasterCard, American Express) and local (for example, Sbercard);
- credit card benefits are Standard, Gold, Platinum.
Credit card Cash-back from Vostochny Bank
Credit limit:
400 000 rub.
Grace period:
56 days
from 24%
from 21 to 63 years old
Consideration:
Service:
0 rubles
Credit card # 120
Credit limit:
1 000 000 rub.
Grace period:
120 days
from 21.4%
from 18 to 65 years old
Consideration:
Service:
0 rubles
UBRD credit card up to 240 days without%
Credit limit:
300 000 rub.
Grace period:
240 days
from 30.5%
from 19 to 75 years old
Consideration:
Service:
0 rubles
Terms
When issuing a credit card, it is important to know the conditions under which it is issued by a particular bank. The following points are fundamentally important for potential borrowers.
- Duration and procedure for calculating the grace period. As a rule, it is 55 days, however, banks can reduce or increase this period at their discretion (of course, this moment is determined “once and for all” and is specified in the contract). As for the calculation procedure, it is especially important to know exactly how it is calculated - this will allow you to pay off the debt on the card and avoid overpayments.
- Credit limit value - may be established for each borrower individually or be the same for all.
- The interest rate is the percentage that the bank will take from the borrower if he did not manage to pay off the debt during the grace period.
- Commission for using a card and cash withdrawal. As a rule, you can pay by credit card without a fee. But she takes it for cash withdrawal - the percentage is set by each specific bank.
- Additional payments. In addition to the main ones, commissions and interest for using the loan, the agreement may provide for additional payments. Their presence must certainly be specified when applying for a credit card.
Credit card Halva from Sovcombank
Credit limit:
350 000 rub.
Grace period:
1095 days
from 0%
from 25 to 75 years
Consideration:
Service:
0 rubles
Installment card Liberty Bank Home loan
Credit limit:
300 000 rub.
Grace period:
365 days
from 0%
from 18 to 70 years old
Consideration:
Service:
0 rubles
Borrower Requirements
In order to get a credit card, the borrower must have a passport and meet a number of requirements:
- citizenship (preferably Russian)
- permanent or temporary registration in the region where the credit card is issued (in some cases, in the territory of the Russian Federation)
- age qualification, usually 21-65 years old
Of course, each bank has the right to change these requirements at its discretion, establish additional documents and even request documents other than a passport. For example, income certificate, driver’s license (to verify identity), student ID, pension certificate, and so on.
How to make out
In order to get a credit card, you need to contact the selected bank with a statement. You can submit it personally, having come to the nearest office, or online, on the official website. After some time, managers will inform the potential borrower of the results of the consideration of his appeal. The credit card itself can also be handed to its holder in several ways: in person at the office, delivered by courier or sent by mail. Some banks may not provide the ability to issue and receive a card remotely.
How to use
After obtaining a credit card, you need to activate it and you can begin to actively use it. Almost the same as a regular debit card, but, of course, within the established credit limit. However, in order not to encounter any unpleasant surprises, it is important to know the features of a credit card and follow the basic rules.
rules
In order for a credit card to start working, after receiving it, you must activate it. This can be done at the nearest ATM or in a virtual personal account. A clear sequence of actions depends, first of all, on the bank in which you got a credit card.
How to withdraw cash
You can withdraw cash from a credit card at any ATM, but for this operation, as a rule, a commission is provided, the amount of which must be specified when concluding the contract. In addition, daily and monthly limits can be set. Sometimes the percentage of commission may be “floating”. So, for example, if you withdraw less than a certain amount per month, then it will be one, and if you exceed this amount, it will be much higher.
Grace period
The grace period, or as it is also called the grace period, is the time during which the bank does not charge interest on the use of money from a credit card. It can be calculated in several ways:
- from the moment of the first completed transaction - that is, for example, if the client withdrew money twice, the period of the interest-free period will be calculated from the day the first amount is received. In order for it to start again, you need to pay off the debt in full;
- for each operation separately;
- starting from a specific fixed date.
The grace period, as a rule, is 55 days, but it can be any other. In addition, some banks may not extend its effect to certain operations - this point must be clarified when drawing up a card and concluding an agreement.
Lock
Sometimes situations arise when a credit card needs to be blocked. For example, because it is lost or somehow used by scammers. In this case, you can act in one of the proposed ways:
- block a credit card by calling the bank on the hotline;
- contact the nearest bank office;
- block a credit card through a mobile bank or virtual personal account.
Sometimes situations arise when the bank itself blocks the credit card. In this case, in order to restore it, you must first find out the reason by calling the hotline, and then, if necessary, apply to the office.
Cashless payments
By credit card, you can make cashless payments or withdraw money from it. At the same time, it is much more profitable to pay by card directly.
Benefits
The most important advantage of non-cash credit card payments is that in most cases there is no commission for such transactions. In addition, your (well, or bank) funds are in relative safety - having lost a card, you can always block it, but cash in this case is almost impossible to return.
What can I pay for
Credit card can pay for any goods, work or services at the discretion of its owner. This is a non-targeted loan, and there are no restrictions on its use.
Visa Classic 100 days without% Alfa Bank
Credit limit:
1 000 000 rub.
Grace period:
100 days
from 11.99%
from 18 to 65 years old
Consideration:
Service:
From 590 rubles
Alfa-Bank's Cash Back Credit Card
Credit limit:
300 000 rub.
Grace period:
60 days
from 23,99%
from 18 to 65 years old
Consideration:
Service:
3 990 rubles
Where can I pay?
By credit card, as well as debit, you can pay in any store where there are terminals. There are no restrictions on credit cards as a means of payment in our country.
How to pay off debt
There are two ways to pay off credit card debt - to pay off the debt before the expiration of the grace period or, if this is not possible, to make a minimum payment.
One-time payment before the expiration of the grace period
This is the only way to use borrowed funds and not pay interest on it. You can pay off your debt one-time or in installments - the main thing is that all the necessary amount be “closed” before the expiration of the grace period.
Minimum payments provided by the bank
If you can’t pay off the entire amount right away, you can make a minimum payment before the grace period expires. Its size is set by the bank and is usually defined as a percentage of the debt amount (for example, in Sberbank it is 5%). However, do not forget that in the future you will have to return not only what is borrowed, but also the accrued interest.
Additional fees
When issuing a credit card, it is important to know that its users may encounter additional fees. Their presence and size are necessarily prescribed in the contract, which means that the user, in order to be “warned and armed”, is enough just to carefully study it.
- Commission for cash withdrawals - established by almost all banks, is usually 1-2%.
- Annual maintenance - the commission is charged once, its value is 150-600 rubles per year, depending on the bank.
- Penalties - commission for violation by the borrower of the terms of the contract. Its value may depend on various factors.
- Additional services with a monthly fee - for example, a mobile bank, SMS informing and others.
Some banks, attracting customers "to their side", offer cards with free annual service and a mobile bank. There is no need to look for this catch.
Many banks offer their customers to return part of the funds spent on purchases by credit card. Cash-back can be awarded with "live" money, or it can be awarded with bonus points, which you can later spend with partners. In any case, there are always stores where an increased cash-back is accrued according to the bonus program of a particular bank, which means that purchases become much more profitable. But for the withdrawal of cash bonuses almost never accrues.
How to use effectively
Before you start using a credit card, you need to carefully study the contract that you have concluded with the bank. It will be clearly written about all its features, possible commissions and other "pitfalls". In addition, there are a number of rules, compliance with which will avoid financial troubles in the future.
- Do not take a credit card as a "wallet" or a means to hold out until your paycheck. This is not your money, and they will have to be returned one way or another. And possibly with interest.
- Try not to withdraw cash from your credit card, as most banks charge a fee for this.
- Carefully study how the grace period is calculated on your card and try "not to go beyond it." Do not forget that without paying the full amount at the scheduled time, you will have to return not only it, but also the interest.
- Check with the bank if it is possible to connect your card to the bonus program and receive cash-back for purchases.
- Follow security measures and make every effort to ensure that your credit card does not fall into the hands of third parties.
Video: How to use a credit card wisely
In simple words, a credit card is a plastic means of payment that allows you to pay with money provided by the bank under the terms of a loan agreement. You can use it both in Russia and abroad.
What is a credit card?
Credit card - the same loan, which, unlike consumer, can be issued for a period of up to 2-3 years, after which the debt must be paid off, and the card is reissued. At the same time, the bank sets a credit limit, i.e., the maximum amount of money that can be spent over a certain period of time. Such a restriction is set by the bank based on the age and solvency of the client, the presence of deposit and other accounts, property, a good credit history, etc.
Unlike a regular loan, the credit limit on the card is revolving, i.e. the maximum amount is set for one-time debt of the client to the bank and can be reused after repayment.
The card itself is a plastic plate that is protected from various damage: scratches, abrasion, water, sunlight, temperature changes.
In international practice, cards are sometimes made of metal, including precious (gold, platinum), for VIP customers.
Simplicity and ease of use is achieved thanks to the universal dimensions, which are determined by international standards. In most countries, the ISO 7810 ID-1 format is used, where the length of the credit card is 8.57 centimeters, the height is 5.39 centimeters, the thickness is up to 1 millimeter, and the rounding radius of the corners is about 3 mm.
Credit Card Features and Features
Thanks to the bank’s cooperation with international payment systems, a credit card can be used not only in Russia, but also in foreign countries. The card provides the following features:
- non-cash payment of goods and services at the expense of credit funds, including outside of their city and country;
- cash withdrawal at an ATM within the established limit;
- constant access to borrowed funds;
- lack of need to report to the lender about the purpose of the loan;
- ordering a plastic product via the Internet on the bank's website;
- free use of borrowed funds until the end of the grace period.
A credit card differs from a regular loan in the way it provides money. A loan is issued, as a rule, at a time, i.e. all amount at once. An exception is programs for business entities in which money may be issued in installments. This gradual provision of resources is called a line of credit. The card by the method of issuing money is just similar to the credit line, since funds are spent in parts, as needed. However, a revolving limit rule applies to a card account.
For example, with a maximum amount of 50 thousand rubles. the borrower made a purchase of 30 thousand rubles, then paid off 20 thousand rubles. The rest of the debt will amount to 10 thousand rubles, and the size of the unspent limit of 40 thousand rubles. (50 - 10). At the next purchase, the client can use credit money in the amount of up to 40 thousand rubles.
Another difference is that the loan is issued in cash, while on the card, non-cash payment is a priority, and withdrawal of cash is subject to commission.
Often a credit card is confused with overdraft, but these are different products. Overdraft is the provision of debt funds in excess of their own. The service connects to debit cards, often salary cards. The principle of operation is as follows: on the client’s card contains a certain amount of their own money, which are debited at the time of payment. As soon as their money is over, the bank starts lending to the cardholder for the amount of the purchase. For overdraft cards, as well as for credit cards, a spending limit is set, beyond which it is impossible to go beyond. In addition, there is another similarity - the presence of a grace period during which you can return the debt without interest.
At first glance, it might seem that these two types of cards are identical, but in fact there are fundamental differences:
- An overdraft card is always debit (most often salary).
- To spend your own money on a credit card, you need to deposit this money, but they arrive on a salary regularly.
- To pay off credit card debt, you usually need to replenish it yourself. According to the salary card overdraft, this happens automatically every time a salary is credited.
- Credit cards are characterized by a higher limit than overdraft.
- The grace period of overdraft cards is significantly lower or absent.
And most importantly, credit card debt can be returned much longer, using the possibility of repayment with minimum payments.
Bank details
Each plastic carrier has a front and back side. On the front side some information, a picture or logo of the issuing bank can be applied. The reverse side is most often plain. At the same time, the following elements must be present on the credit card:
- surname and name of the holder (if the card is registered);
- logo of the payment system (Visa, MasterCard);
- protective chip;
- magnetic strip;
- security Code CVV2, CVC2;
- place for signature;
- name of the bank that issued the card;
- card expiration date (month and year in numerical format);
- hologram;
- embossed card number, consisting of 16 characters (not to be confused with the account number).
Data that is not displayed on the means of payment, but is necessary to make payments:
- TIN and full name of the recipient;
- account number (assigned by the bank and consists of 20 characters);
- BIC - code used to identify a financial institution;
- correspondent account (assigned when registering a bank and used for settlements with other banks);
- full name of the financial organization.
Abroad, settlements on credit cards require the obligatory indication of the card's billing address. This is the place of residence of the client, which he indicated when applying for a card. In Russia, this attribute is not used, but sometimes a foreign online store may request it if you wish to make a purchase there. The owners of such stores know that the billing address is not tied to Russian cards, and are moving towards our customers. Transactions are conducted without reconciling the card's billing address. But sometimes they may not accept payment.
You can find out the full details of your bank card in the loan agreement by requesting information on the website or at the bank’s office or by calling the hotline.
What is a credit limit and tranche cards
After the bank decides to issue a card, a limit is set on it, that is, the amount of funds that can be used. Before this, the client is checked for solvency, for which it is necessary to provide documents confirming regular income. As a rule, its size is set at a level of not less than 15 thousand rubles. for the Moscow region and 10 thousand rubles. for other regions. If the official source of income is lower than required, some banks take into account the ownership of an apartment or car.
With time credit limit can be increasedif regular transactions are made on the card by contacting a bank branch with a corresponding statement.
Exceeding the credit limit is almost impossible, because the bank strictly controls the amount of funds used. But in some cases, the excess still arises for technical reasons. For example, when paying for a purchase at one of the outlets, the money was not debited from the card immediately, but on the next day. If the client at this time made another payment from the card account, it is possible to go beyond the established limit. In such situations, penalty interest may be charged for exceeding the maximum loan amount, the amount of which depends entirely on the fees of the servicing bank.
A card tranche is the amount of money that a bank has provided for a purchase. But here the calculation does not include the total amount of expenses per day, but the amount of each individual transaction. So, if the customer paid for food for 3,000 rubles. and then acquired household appliances for 10,000 rubles., there are two tranches of credit cards.
Debt Payment Methods
A credit card works a little different than a regular loan. After debiting funds, the client usually has a grace period. This is the period during which the money spent can be returned to the bank without paying interest.. If the client does not have time, then the amount of accrued interest is added to the main debt. Further, the debt will need to be repaid in monthly installments (partial payments) no later than the established date or to pay the entire amount immediately.
The algorithm is as follows: the bank sends a statement of the account, indicating the payment - usually about 10% of the total loan amount plus interest accrued over the past month. This will be the minimum amount that must be paid off. You can deposit funds to pay a loan in the following ways:
- cash through the bank cash desk;
- by transfer from another card;
- through an ATM;
- send the indicated amount by postal order;
- use payment terminals or Internet systems.
Ultimately, the full cost of borrowed funds consists of the interest rate and the commission for servicing a credit card.
The main types of cards
Credit cards can be classified according to several criteria.
By type, they are divided into standard (with magnetic stripe) and chip, and by the method of calculating interest - with a grace period and without it.
Depending on the payment system, credit cards are divided into international, widespread everywhere (Visa, MasterCard, American Express), and local, which are accepted only in certain banks of the country (Union Card, NPS).
By class:
- classic
- gold;
- platinum.
Depending on the status of the card, the bank sets the maximum size of the credit limit and provides an additional package of services, which may include discounts from bank partners, round-the-clock customer support, travel insurance, etc.
Co-branded cards and installment cards deserve special attention. Co-branded credit cards do not differ at all by the principle of use, but they have a great advantage in the form of accruing all kinds of bonuses from partners of the bank. The conditions of different co-brands differ in the way privileges are granted: receiving a guaranteed discount or accumulating points, which are subsequently exchanged for gifts or the same discounts.
Installment cards, unlike credit cards, make it possible to purchase goods and pay for them in installments without paying interest to the bank. However, after the time allotted for the payment of installment payments, interest begins to be charged. Thus, such cards are very similar to credit cards that have a grace period. The main difference is that you cannot withdraw cash from installment cards. Although this border is beginning to gradually erase. So, the Halva card allows you to cash out money, but only when you visit the bank and for no more than 3 months.
On average, each person has 3-5 plastic cards in their wallet, but how much do we know about them?
This is a tool for borrowing money from a bank multiple times. With its help, you can pay for goods and services, as well as receive cash at an ATM. The loan amount is limited by the bank - the maximum loan amount is determined based on your solvency.
Description
The credit card is a plastic rectangle with rounded ends measuring 85.6 × 53.98 mm. On its surface contains a magnetic strip. Cards with a microchip have become widespread, which allow you to store 80 times more information about account data than is possible on magnetic media.
The front side of the card contains a graphic image (drawing or photo), the name of the bank that issued the card, logo of the payment system, most often a 16-digit number (sometimes 8, 18 or 20 digits), month and year of expiration, name and surname of the holder cards in English. On the reverse side is the contact information of the bank, a strip with the signature of the card holder, and in some cases - the security code CVV2.
Benefits
Credit cards have a wide range of features. They can be paid anywhere in the world where card acceptance terminals are installed, as well as cash withdrawals at ATMs of any bank.
The main advantage of most cards is the availability of a grace period - the period in which the bank does not charge interest on the use of a loan (usually it is 50-60 days) - in fact, it is provided for free. There is no need to report to the bank for the use of money, and after paying the debt, it becomes possible to get a new loan.
You can get a credit card at most banks in Russia. To do this, you must submit your application through the office of the institution, its website or by phone. You will need a passport of a citizen of the Russian Federation.
Difference in concepts
A credit card is often called a "credit card." However, some confuse it with a debit card. A debit card, as a rule, always contains a positive balance of funds that are the property of the card holder. People save money on debit cards, receive wages or income from deposits on them. Credit cards, on the contrary, imply access to the bank’s funds, and are used in cases of insufficient own funds.
Tip Sravni.ru: If from time to time you need loans for a small amount “before salary”, then apply for a credit card. It will be possible to return the money before the end of the grace period - the loan will be free.
Externally, the card is a plastic rectangle measuring 86 * 54 * 0.76 mm. It is interesting that initially cards, and only then they began to be made of plastic.
During manufacture, protective elements are applied to the surface of the card. On the front side is the logo of the payment system, a hologram, card number, bank name, chip, name of the owner, etc. On the back, two important components can be distinguished - the magnetic strip and the security code. But not all of this will necessarily be on the card - for example, it may not contain the name of the owner or chip. More details about the protective elements of banking "plastic" can be found in.
Credit, debit or overdraft card - what's the difference?
Cards are credit, debit and with overdraft permitted. Outwardly they are similar, but the conditions for them are completely different. Do not confuse them!
- Credit(credit card) - a card, the funds on which are the property of the bank. Having spent, they will have to be returned with interest. Moreover, the maximum amount that a client can use is determined by the bank and can be rather big.
- Debit- a card on which the owner’s own funds are located. It can be both personally invested money, and salary, scholarship, pension, etc. You can not spend more than this amount.
- Overdraft Card - This is a "hybrid" of debit and credit cards. Most often, such cards are opened to salary clients. The bottom line is that you can initially use your money, as on a regular debit card. But if your own funds are over, you can get into debt. True, the limit in this case is usually small. Any receipt of money (for example, salary) will be immediately debited to the existing debt. Repaying such a loan is necessary, as a rule, within a month (less often - two or three).
What is the difference between bank cards?
You can classify cards according to several parameters.
1) Cards may belong to different payment systems (PS)
The most common PSs are Visa, MasterCard and. Unlike the first two, the latter is not yet very popular in Russia. As for the use of Visa and MasterCard cards in our country, it is impossible to say which ones are better. There is practically no difference. But when traveling abroad, the choice of a payment system should be taken more seriously, you can learn more about this.
2) Cards are subdivided by type (class)
- the cheapest and easiest: Cirrus / Maestro, Electron, Electronic (as a rule, there are only debit ones);
- classic:;
- status:,;
- elite: etc.
Of course, the classification is rather arbitrary, but the essence is clear.
3) Cards are registered and unnamed
Name cards (or personified) are those on which the surname and name of the holder are present.
The design greatly simplifies mutual settlements. Having such a card, you will never be left without money: credit cards can be used to withdraw cash from ATMs of banks of all countries, which is especially convenient for travelers and people who often travel on business trips.
Most financial and credit organizations issue credit cards with a grace period of lending. Within 50-60 days, the borrower uses the money absolutely free of charge, without paying interest on the loan.
It is important to note that the money withdrawn from a credit card is an inappropriate loan, which you can dispose of as you wish. Credit card holders do not inform the bank about where they spent the money, which is always very convenient.
If you decide to get a credit card, then you can easily do it in almost any bank in Russia. Thanks to the simplified design of plastic cards, you have to fill out a minimum of documents.
The difference between credit and debit cards
Quite often, the question arises of how the credit and debit cards offered by banks differ. always have a positive cash balance, they are designed to accumulate money, receive income from deposits and transfer salaries.
Credit cards have a slightly different purpose. Their balance may be negative, while the main task of credit cards is to provide the cardholder with money when he does not have enough of his own funds.
Practice has proved that credit cards are the fastest way to get inappropriate loans from a bank. Money can be withdrawn from them at an ATM of any bank, which is very convenient during travel and business trips.
Important Benefits of Using Credit Cards
If you have ever used credit cards, then you probably managed to evaluate all their advantages. A credit card in your pocket opens up wide opportunities for its owner, allowing you to get the missing amount of money almost instantly. It is suitable for payment for goods and services wherever terminals are installed.
For lovers of purchases in online stores, a credit card will be convenient, and in some cases the only way to transfer payment. In some banks, the functions of credit cards have the ability to exchange currencies, which is especially important when ordering goods and paying for services on foreign sites.
When is it worth counting on bonuses?
When choosing a credit card, be sure to check whether it will participate in loyalty programs. Quite often, with the active use of credit cards, banks accrue bonuses on them. These bonuses can be spent on discounts at affiliate stores, gas stations, beauty salons, restaurants, etc.
If a credit card is connected to a charity program, each time you pay for goods and services with a credit card, you will help sick children, veterans and orphanages. The whole process is fully automated, so transferring money for good needs does not bother you.
Important to remember
In no case should you forget about such a useful service as a grace period for a credit card. Within 50-60 days you can use the borrowed money absolutely free. To date, such credit programs operate in most banks.
Using a credit card can greatly simplify settlements for goods and services. The best option is a credit card connected to affiliate and bonus programs.