What is e credit card. Credit cards in simple words - what are they for and how to use them

Registration 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 in all countries, which is especially convenient for travelers and people who often go on business trips.

Majority financial and credit organizations releases credit cards with a grace period. 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It is important to note that the money withdrawn from a credit card is a non-purpose loan that you can use as you wish.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 issue a credit card, you can easily do it in almost any bank in Russia. Thanks to the simplified registration of plastic cards, you will have to fill out a minimum of documents.

The difference between credit and debit cards

Quite often the question arises, what is the difference between credit and debit cards offered by banks. always have a positive cash balance, they are designed to accumulate money, receive income from deposits and transfer wages.

A slightly different purpose for credit cards. Their balance can be negative, while the main task of credit cards is to provide the cardholder with money when he does not have enough own funds.

Practice has proven that credit cards are the fastest way to obtain non-purpose 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 Money can be withdrawn from them at an ATM of any bank, which is very convenient during travel and business trips.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 appreciate all their advantages. A credit card lying in your pocket opens up wide opportunities for its owner, allowing you to almost instantly get the missing amount of money in your hands. It is suitable for paying for goods and services wherever terminals are installed.

For fans of shopping in online stores, a credit card will become a convenient, and in some cases the only way to transfer payment. In some banks, in the functions of credit cards, the possibility of exchanging currencies is implemented, which is especially important when ordering goods and paying for services on foreign sites.

When should you expect bonuses?

When choosing a credit card, be sure to specify 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 in partner stores, gas stations, beauty salons, restaurants, etc.

If the credit card is connected to a charity program, every 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 the transfer of money for good needs will not bother you in any way.

Important to remember

In no case should you forget about such a useful service as Grace period credit card activities. Within 50-60 days you will be able to use borrowed money absolutely free of charge. To date, such credit programs operate in most banks.

Using a credit card allows you to significantly simplify mutual settlements for goods and services. The best option is connected to partner and bonus programs credit card.

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Surely everyone has heard more than once about offers from banks about the possibilities to get a credit card for free, but not everyone knows what benefits they can give and how to use them. For many, one word "credit" is immediately associated with "robbery". In fact, everything is a little different. We suggest you read this article to the end to learn about all the intricacies of credit cards and thereby improve your financial literacy.

1. Credit card - what is it in simple words

Credit card(abbreviated as "credit card", from the English "credit card") is a bank card that allows you to make purchases automatically by borrowing cash the bank has funds

The "borrowing" of funds occurs during the purchase operation. Each card has a credit limit that can be used. Usually this amount is limited to a range of up to 300..500 thousand rubles, depending on the type of credit card, your income and the bank. Issued for a period of 2 to 5 years, after which they are automatically reissued.

Each bank has its own conditions. There is no single standard by which credit cards work. We will look at the most common conditions.

One of the benefits of credit cards is the ability to use grace period(or grace period), which allows you to return money to the bank without paying any interest and other overpayments. How much they took - so much returned. Everything is fair and without deceit. Each bank sets its own grace periods (some more, some less).

Note

The grace period only applies to payments non-cash payment. When withdrawing funds from an ATM, a commission will be charged (in most cases 3-5% of the amount). Therefore, it is better not to withdraw cash from a credit card, as this is extremely unprofitable.

Exist different types credit cards, which, depending on the status, provide different opportunities for making payments. They are usually classified as follows:

1. Classic (Classic)
2. Golden (Gold)
3. Platinum (Platinum)

The most important parameters are:

• Maximum loan amount;
• duration of the grace period;
• The cost of servicing the card;
• Bonuses and cashback upon payment;
• The interest that must be paid to the bank if you have gone beyond the grace period;

2. Advantages and disadvantages of credit cards

Banks willingly issue credit cards to almost every person in the hope that he will forget or be unable to make a payment on the loan taken on time. In this case, the bank will make good money (commissions, interest for the period, etc.).

However, credit cards still have many undeniable advantages.

• The ability to make purchases instantly, without having your own funds without additional trips to the bank.
• Solid bonuses and cashback from the bank. Thus encouraging to use these cards and spend more.
• The presence of a grace period during which you can not pay anything for using the loan
• It is convenient to pay for purchases abroad. Plus, it's your extra money just in case.
• Usability credit limit again and again
• There are free credit cards that do not require an annual service fee.

• Having the opportunity to quickly take out a loan without interest is the motivation to do so. Moreover, this feeling is more developed in those who do not have free money, that is, those who use credit cards
• The bank is interested in taking commissions, interest and so on from you. Therefore, you need to be careful when signing the contract and further servicing the card.
• In order not to pay fines and interest, you need to remember to make a payment.

3. The most profitable credit cards

There are a lot of offers on the credit card market. This is good, because due to high competition, really good propositions for the end user. Consider the most best credit cards for 2019.

3.1. Tinkoff credit card

3.2. Installment credit card Halva (SovcomBank)

4.5. Differences between a credit card and a personal loan

Which is better: a credit card or a personal loan? There is no single answer to this answer. Depending on the situation, either the first or the second option may be better.

Here are the main differences between a credit card and a loan:

1. You can take loans regularly without going to the bank
2. You can take any amount not exceeding the established limit
3. There is a grace period for which you do not have to pay interest. At consumer credit interest immediately starts working against you
4. The possibility of quick repayment without going to the bank. When repaying a regular loan, trips to the bank are required, which creates inconvenience

4.6. Can I withdraw money from a credit card?

You can withdraw money from a credit card through an ATM. But there is a fee for this. However, on the market you can find cards that allow you to do this without overpayments. To do this, you need to look specifically for such proposals.

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talking in simple words a credit card is a plastic means of payment, which allows you to pay with money provided by the bank under the terms loan agreement. You can use it both in Russia and abroad.

What is a credit card

A credit card is the same loan, which, unlike a consumer loan, can be issued for up to 2-3 years, after which the debt is without fail must be redeemed and the card must be reissued. At the same time, the bank sets a credit limit, i.e. the size of the maximum sum of money, which can be spent within a certain period of time. Such a restriction is set by the bank based on the age and solvency of the client, whether he has deposit and other accounts, property, good credit history and etc.

Unlike a regular loan, the credit limit on the card is revolving, i.e. the maximum amount is set in relation to the client's one-time debt to the bank and can be spent again after repayment.

The card itself is a plastic plate, which is protected from various damages: scratches, abrasion, water, sunlight, temperature changes.

In international practice, cards are sometimes made of metal, including precious metal (gold, platinum), for VIP customers.

Simplicity and ease of use is achieved thanks to the universal dimensions, which are determined international standards. Most countries use the ISO 7810 ID-1 format, where the credit card is 8.57 centimeters long, 5.39 centimeters high, up to 1 millimeter thick, and has a corner radius of about 3 mm.

Features and features of a credit card

Thanks to the cooperation of the bank 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 for goods and services loan funds, including outside your city and country;
• withdrawing cash from an ATM within the established limit;
• constant access to borrowed funds;
• no 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 conventional loan in the way that funds are provided. The loan is issued, as a rule, at a time, i.e. the whole amount at once. An exception is programs for business entities, within which money can be issued in installments. This gradual provision of resources is called a line of credit. The card, in terms of the method of issuing money, is just similar to credit line, since the funds are spent in installments, as needed. However, the card account is subject to the revolving limit rule.

For example, with a maximum amount of 50 thousand rubles. the borrower made a purchase for 30 thousand rubles, then repaid 20 thousand rubles. The balance of the debt will be 10 thousand rubles, and the amount of the unspent limit will be 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 the card priority is a non-cash payment, and the withdrawal of cash from it is subject to a commission.

Often a credit card is confused with an overdraft card, but they are different products. An overdraft is the provision of a loan of funds in excess of one's own. The service connects to debit cards, often salary. The principle of operation here is as follows: the client's card contains a certain amount of his own money, which is debited at the time of payment. As soon as their money is over, the bank begins to credit 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. In addition, there is another similarity - the presence of a grace period during which you can repay the debt without interest.

At first glance, it may seem that these two types of cards are identical, but in fact there are fundamental differences:

1. An overdraft card is always a debit card (most often a salary card).
2. To spend your own funds on a credit card, you need to deposit this money, but they are received regularly on a salary card.
3. To pay off a credit card debt, as a rule, you need to replenish it yourself. By overdraft salary card this happens automatically with each payroll.
4. Credit cards have a higher limit than overdrafts.
5. grace period overdraft cards significantly lower or absent.

And most importantly, credit card debt can be repaid much longer, using the possibility of repaying the minimum payments.

Credit card details

Each plastic media has a front and back side. Some information, drawing or logo of the issuing bank may be applied on the front side. The reverse side is mostly plain. In this case, the following elements must be present on the credit card:

• surname and name of the holder (if the card is registered);
• logo payment system(Visa, MasterCard);
• security chip;
• magnetic strip;
• security code CVV2, CVC2;
• place for signature;
• the name of the bank that issued the card;
• expiration date of the card (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 payment instrument, 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 - a code by which a financial institution is identified;
• correspondent account (assigned upon registration of the bank and used for settlements with other banks);
• full name of the financial institution.

Abroad, making payments on credit cards requires the obligatory indication of the billing address of the card. This is the place of residence of the client, which he indicated when applying for a card. In Russia, this requisite 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 for Russian cards does not become attached, and go towards our customers. Operations are carried out without verification of the payment address of the card. But sometimes payment may not be accepted.

Find out the full details of your bank card possible in loan agreement by requesting information on the website or at the bank office or by calling the hotline.

What is a credit limit and card tranche

After the bank decides to issue a card, a limit is set on it, i.e. the amount of funds that can be used. Before this, the client is checked for solvency, for which you need to provide documents confirming regular income. As a rule, its size is set at a level of at least 15 thousand rubles. for the Moscow region and 10 thousand rubles. for other regions. If official source income is lower than required, some banks take into account the ownership of an apartment or car.

With time credit limit can be increased if regular transactions are carried out on the card, by contacting the bank branch with a corresponding application.

It is almost impossible to exceed the credit limit, because. The bank strictly controls the amount of funds used. But in some cases, the excess still occurs for technical reasons. For example, when, when paying for a purchase at one of the outlets, the money was debited from the card not immediately, but 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 maximum amount loan, the amount of which depends entirely on the tariffs of the servicing bank.

The tranche of the card is the amount of money that the bank provided for the purchase. But here it does not count overall size expenses per day, and the amount of each individual transaction. So, if the client paid for food for 3000 rubles. and then purchased household appliances for 10,000 rubles, there are two tranches on a credit card.

Debt payment methods

A credit card works a little differently than a regular loan. After debiting funds, the client usually has a grace period. This is the period during which the funds 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 principal debt. Further, the debt will need to be repaid in monthly installments (partial payments) no later than the due date, or the entire amount must be paid at once.

The algorithm is as follows: the bank sends an account statement indicating the payment - usually about 10% of total amount loan plus accrued interest for the previous month. This will be minimum amount which must be paid off. You can make a loan payment in the following ways:

• in cash through the bank's cash desk;
• by transfer from another card;
• through an ATM;
• send the specified amount by postal order;
• use payment terminals or Internet systems.

Ultimately, the total cost borrowed money consists of the interest rate and the commission for servicing the credit card.

Main types of cards

Credit cards can be classified according to several criteria.

By type, they are divided into standard (with a magnetic stripe) and chip, and by the method of calculating interest - with and without a grace period.

Depending on the payment system, credit cards are divided into international, widely used (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 maximum size 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 in terms of the principle of use, but they have a great advantage in the form of accruing all kinds of bonuses from bank partners. 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 that was 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 blur. So, the Halva card allows you to cash out money, but only when you visit the bank and for no more than 3 months.

Now almost everyone has a payment card in their wallet. And very often among them you can see a credit card. It can help solve some financial matters. But for the effective use of a credit card, you need to understand the features of its functioning and find out what it really is.

A credit card is a bank a plastic card with a certain credit limit. IN modern world credit cards have become widespread. With a lack of own funds, both in cash and for cashless payments in the retail and retail network, you can use borrowed funds provided by the bank. Credit cards have seriously squeezed the market banking services consumer loans.

How to apply?

Due to the high level of competition, the conditions for issuing credit cards in banks are becoming more and more loyal. Usually the bank requires you to provide a passport and a certificate of income. In some cases, a certificate may not be required. Sometimes the bank may ask additional documents such as a passport or driver's license.

To apply for a credit card, it is not even necessary to contact a bank branch. Many financial institutions provide the opportunity to issue it even via the Internet. After the card is ready, the client needs to contact the bank branch or order a delivery service. But, as a rule, the simpler the terms of registration, the more expensive it is for the client to use borrowed funds. It is easier to issue a card if the client is already an active user of other products of a particular bank and has a good reputation in it.

How it works?

After assessing the solvency of the borrower, the bank sets a credit limit on the payment card. In each bank, the method of calculating the possible credit limit is different and may depend on many indicators: age, place of work, social status, the availability of other loans, the quality of their service, and much more.

When applying for a credit card, you should carefully study the tariffs, because other commissions can be hidden under a low interest rate, which significantly affect the cost of borrowed funds.

You need to pay attention to the following points:

• Presence of a grace period (grace period) and how it is calculated.
• Additional commissions.
• Penalties for late payment of debts.
• Availability of additional services and their cost.

Grace period

A grace period is a period for which the bank does not charge interest on a loan. But you need to carefully study the way it is calculated. There are two ways:

1. The period is calculated from the day of the first transaction (withdrawal of funds). That is, if, for example, a client withdraws money three times, then the term of the interest-free period is calculated from the day the first amount was withdrawn. In order to start a new grace period, you must fully repay the debt.
2. The period is determined separately for each transaction.

The maximum interest-free period is usually up to 55 days. This service allows you to use credit funds free of charge if the borrower manages to fully repay the debt within the agreed period.

The grace period may not apply to individual transactions. There are banks that provide interest-free loan exclusively for settlements in the retail network. All these points should be spelled out in the contract.

Cash withdrawal

The conditions for cash withdrawal should also be detailed in the contract. For cashing out credit funds, the bank usually charges a commission. A certain limit on the operation can also be set. The limit is usually set within one day, and can be removed after contacting the bank. If the client plans to withdraw an amount that exceeds the allowable limit, then you should contact the bank in advance and find out all the details of lifting the limit. Often this operation is not done quickly enough.

Online payments: safety first

Many credit cards can be used to pay for goods and services online. To perform an online operation, you must enter the following information in the appropriate fields:

• Name of the credit card holder.
• Its validity period.
• Code CVC2.

The CVC2 code is listed on reverse side cards. He may be absent from Visa cards Electron Maestro. In such cases, you need to contact the bank's customer support and clarify the possibility of using the card for online payments.

If a third party knows this information, then he can make a payment without the owner. Therefore, it cannot be shared with anyone.

How to pay off debt?

Typically, banks require a certain amount to be repaid per month. minimum payment. It is 5-10% of the amount owed at the end of the billing period. Sometimes it is necessary to enter fixed payment. Interest is deducted from this payment for the use of the loan, but only if the grace period has already ended. The remaining amount goes to pay off the principal debt. This amount will be available for a new withdrawal.

Additional fees

Additional commissions also affect the cost of debt service. They may be charged in the following cases:

• For the issuance of cash at an ATM and bank cash desk. At an ATM of another bank, the withdrawal fee may be higher.
• Commission for Additional services: SMS informing, Internet banking, credit limit increase, card blocking, reissue in case of loss, etc.
• for the status of the card. The more benefits and bonuses, the more expensive the card issue will be.

This list is, of course, not exhaustive. In order not to get into an unpleasant situation associated with an additional payment, it is necessary to carefully study the bank's tariffs for servicing a credit card.

Cash-back is a return of a certain percentage of the purchase amount to the card. This percentage may be different when calculating in different outlets and companies. Some banks do not return money, but accrue bonuses or points, which can then be paid in a certain retail chain. But some banks set an increased interest rate on credit debt if the card has Cash-back. Thus, the entire benefit of this service can be reduced to zero if you do not have time to return the money before the grace period expires.

How to use it effectively?

To use a credit card was profitable, you should adhere to the following rules:

• Use it mainly for non-cash payments in the retail network, since the bank always charges an additional commission for cashing out funds.
• Carefully monitor the duration of the grace period and try to repay the debt within it. Even if borrowed funds are still needed, the money can be withdrawn again, and the bank will start calculating the grace period again.
• Explore additional paid services and, if possible, refuse them if there is no need to use them.
• Use the SMS-informing service. This service is usually paid, but it allows you to control card debt.

For many, a credit card is not only convenient way solving financial issues, but also a temptation for impulsive spending and purchases. Borrowed funds should be used in unforeseen situations or when it's really effective.

Many owners of a means of payment are interested in what a credit card is, how it looks, and how best to use it. Credit cards are ubiquitous, they have different conditions, but work on the same principle. What should everyone who decides to purchase this financial instrument know about?

What does a credit card look like?

TKS bank credit card.

A credit card is a plastic rectangle that contains a chip with information about the owner's account. The dimensions of the plastic carrier according to the standards are 85.6 x 53.98 x 0.76 mm.

The front side contains the following information:

• card number;
• the name and surname of its holder, if the card is registered;
• the period until which it is valid;
• logo of the payment system used;
• name of the issuing bank.

On the reverse side is:

• bank information;
• place for the client's signature;
• the security code that is used when making purchases online;
• magnetic strip containing card data.

The design of the plastic carrier is determined financial institution which emits it. For some credit cards, you can choose the design yourself.

Types of credit cards

Major payment systems

Credits are of the following types:

1. Classic. They have standard credit terms.
2. Golden. They have a higher limit.
3. Platinum. They provide additional services.
4. Co-branded. They allow you to receive various bonuses when using, for example, a discount or accrual of points.

Types of payment systems can also be different. The most popular in Russia are Visa, MasterCard (Maestro).

Credit card terms

Offer from Tinkoff bank.

If you define a credit card in the simplest terms, then this is a kind of bank lending, in which a person receives access to money through a payment instrument, a plastic carrier. This type of loan is revolving, that is, the bank's funds can be used repeatedly.

The maximum amount of borrowed funds is determined during the consideration of the application and depends on such factors:

• card type;
• the amount of income of a potential client;
• history of previous loans.

The interest rate for the use of borrowed funds in each bank is different. Here is an example of 5 popular banks and their lending conditions.

When issuing a card, a specific rate is set after assessing the client's solvency and is fixed in the contract.

Fact! In most banks, the percentage for using cash is slightly higher than for non-cash transactions.

Almost all credit cards have a grace period during which you can use borrowed funds without paying interest. To do this, you need to return the spent money to the account before it ends. The duration of the interest-free term is on average 50-55 days, depending on financial policy jar.

The grace period has its own nuances:

1. This option does not apply to cash withdrawals in most institutions.
2. The interest-free period is calculated differently in each bank. It is usually calculated from the moment the purchase is made or from the day the account statement is received.

By regularly returning the spent funds to the card within the grace period, you can use borrowed funds without paying interest.

Offer from Renaissance Bank.

In the event that it is not possible to repay the entire amount of the debt, a mandatory minimum payment must be made. As a rule, its size is 5-10% of the funds used.

In most banks on credit cards there are such payments:

1. Commission for cash withdrawal, as a rule, does not exceed 2%.
2. Card service for a year, usually from 150 to 560 rubles.
3. Penalties for non-compliance with the terms of use are specified in the contract.
4. Additional services, such as SMS informing.

There are cards with free annual service and SMS informing, there are those where even the Internet bank is connected for a fee. The cards are valid for 3 years in most institutions. Next, the credit card is closed or re-issued.

Requirements for the borrower

Loan program from Alfa-Bank.

There are standard bank requirements that must be met in order to receive credit card:

1. The presence of citizenship, for example, Russian.
2. Registration. May be permanent or temporary.
3. Age must be within the range set by the institution. Usually it is from 21 to 65 years old, but there are special programs for young people from 18 years old and for the elderly up to 75-80 years old.

Without exception, all cards are issued upon presentation of a passport. The following documents may also be required:

• a second document for identification (for example, a passport);
• income statement;
• pension certificate or student card.

The exact list of requirements for the client should be clarified on the bank's website, or by calling the hotline.

How to get a loan?

Co-branded TCS cards with bonus accrual.

In order to apply for a card, you must fill out an application form. You can do this in the following way:

• online;
• at the bank office.

If the bank approves the application, the contract is signed and the plastic carrier is handed over.

Financial institutions may offer to receive the card itself directly in one of the following ways:

• at a bank branch;
• take advantage of home delivery by courier service;
• mail.

Nuance! Some institutions, after the activation procedure, withdraw funds to pay the fee for the annual service of the card.

Debt repayment methods

Offer from Rosselkhozbank.

Credit card debt is repaid in the following ways:

1. From any other card.
2. Bank transaction.
3. Through the payment terminal.
4. Electronic money.
5. Depositing funds into the cash desk of a financial institution.

Some payment methods may incur a fee. This nuance should be clarified in advance so that the amount of the debt to be repaid does not decrease by the amount of the commission.

Advice! When choosing the option of depositing funds, you should calculate their timing of receipt. The debt is considered repaid after the money is credited, and not from the time of payment. Therefore, in order to avoid penalties, you should not do it at the last moment.

How to use a credit card?

Offer from VTB 24.

You can use credit in the following ways:

1. Pay it when making purchases, this is a cashless payment.
2. Withdraw money through an ATM, these are cash transactions.

To make transactions with the card, it is convenient to connect to the Internet bank or use mobile application. With their help, the functions become available:

• obtaining information on the amount of available funds;
• the ability to control payments;
• making money transfers;
• payment for various services;
• connection of additional options.

It should be remembered that when making any transactions with the card, you must not tell anyone the PIN code and lose sight of the plastic carrier. This is important for the safety of the client's money.

Features of credit cards

Cashback offer from RaiffeisenBank.

Plastic cards have the following advantages:

1. This is a universal means of payment with which you can pay for any services or goods either by bank transfer or in cash.
2. You can make purchases without even having your own funds.
3. When traveling abroad and paying in another currency, an automatic conversion is performed.
4. If there is a grace period, then you can use bank funds without interest.
5. Safety. If the card is lost, the account is blocked and the funds are saved.
6. This type of loan can be used repeatedly.
7. Many banks, for example, bank Tinkoff, offer cashback (return of money spent by the client).

When issuing a credit card, you must carefully study all the nuances that may arise when using it. This will help to avoid unnecessary overpayments and will contribute to its most effective use.