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Top 10 Things You Didn’t Know About Credit Cards

Top 10 Things You Didn’t Know About Credit Cards: People shy away from credit cards because of the high rates and expensive service costs. In fact, you can not pay for a credit card and even earn with it. We tell the secrets that only advanced users know.

But first I want to tell you that if you want to generate a viratual credit card then you can generate it from the credit card generator.

The Top 10 Things You Didn’t Know About Credit Cards Are:

1. You don’t have to pay for a loan.

Many people think that you should always pay for a car loan. This is wrong. The loan can be used free of charge if:

  • make a purchase by bank transfer (when withdrawing money, a commission is often taken);
  • repay the loan in full before the expiration of the grace period.

Have done all this – the loan will be free.

2. The grace period is not always long.

On average, banks offer a grace period of up to 55 days, and some up to 730 days. It sounds appealing, but don’t fall for ad gimmicks. Even a grace period of up to 55 days can last half as long.

It all depends on the estimated date. Let’s say this is the 5th day of each month, and the grace period is up to 55 days. If you make a purchase with a credit card on the 6th, you will have 54 days to pay off the loan so that it is free.

If the settlement date is the 5th, and you took the loan on the 4th, then the grace period will be only 26 days (1 day before the reporting date and 25 days after it).

If you do not meet the grace period, you will need to pay interest to the bank from the first day of the card debt.

The settlement date can be the number of the first purchase of the card or the date of its issue. Let’s say you made your first purchase on March 3rd, which means that the 3rd day of each month will be the settlement date. In order not to get confused, check it with the bank.

Important: the grace period can only apply to non-cash transactions and not apply to money that you withdraw through an ATM. Check this condition when concluding a contract.

3.You can earn money with a credit card.

Skilful use of the grace period allows you to earn on a credit card. To do this, you will need a credit card with cashback, a debit card with a high interest on the balance or a replenished deposit.

We already know that free credit card money can be used during the grace period. The easiest way is to keep your money in a deposit or debit card with an interest on the balance and use a credit card for everyday purchases. After receiving the salary, the credit card debt is extinguished, and the balances are transferred to income accounts.

Some credit cards have more cashback than debit cards. For example, it can be 2% for all purchases and 10%, for example, when paying for gasoline or restaurants. Cashback can be credited with money, bonuses or miles (according to co-branded programs), which can be exchanged for an air ticket or travel. Therefore, it is profitable to keep your money in profitable accounts and to conduct all expenses on a credit card.

“As a rule, before the trip, we make one or two large purchases – for example, air tickets and hotel accommodation. With a credit card, during the trip, you can accumulate bonuses for purchases and accumulate up to 36,000 miles a year, and then return the entire cost of the trip with a cashback, “- Andrey Muravyev from Promsvyazbank shares his experience.

4. You can request a free card service.

For using most credit cards, you need to pay a commission from 500 to 18,000 rubles per year. How can you avoid this? If you have a credit card, then write a statement about its closure.

A bank employee can call you to find out the reason. Say that you don’t want to pay for the service, and if it was free, you would keep the card. 

Customer-oriented banks meet halfway and offer free service. If you are refused, then you can always find a card with free service in another bank.

5. You can leave your credit card at home.

If you frequently use a credit card and have a phone with NFC technology, then you can download it to the Apple Pay, Samsung Pay or Android Pay application, consult VTB Bank. So any purchase from your phone can be made with one touch. It’s safer than carrying your card with you.

6. Some credit cards have travel insurance.

Few people know about this. Some credit cards have free travel insurance for the entire duration of the card. Separately, such policies cost from 5 to 20 thousand rubles. in year. They can be obtained free of charge by credit card. The cost of servicing the card is from 1 to 4.2 thousand rubles per year. Save money anyway.

7. Interest on the loan is calculated every day.

Even during the grace period, the bank charges interest on the use of the money. They do not need to be paid if you meet the grace period, but if you go beyond it, then interest will be charged for each day of debt.

Let’s say you borrowed 20 thousand rubles by credit card. During the grace period, the bank was returned 2 thousand rubles, and two months later the remaining 18 thousand rubles. The bank charges interest first on all 20 thousand, after the return of 2 thousand – on the remaining 18 thousand rubles.

8. If you transfer money from card to card, then a commission is charged.

When withdrawing cash from a credit card, you must pay a commission (with rare exceptions). Banks honestly warn their customers about this. They try to outsmart the bank and transfer money from a credit card to a debit card.

And then cash it out through an ATM. It Will not work. When transferring money from card to card, the bank takes the same commission as when withdrawing cash.

Also, some banks offer cards for which cash withdrawals are included in the grace period, that is, the bank does not charge interest. However, when withdrawing cash from the card, a commission may apply.

9. You must pay for the lost card.

Have you decided to close your credit card and keep it as a souvenir, or did it get lost somewhere at home? The card must be returned to the bank. 

According to the agreement, this is the property of the bank, and you are the temporary owner. For non-return or loss of the card, a commission is charged, comparable to the cost of the annual service.

You also need to pay a commission for the re-issue of the card, if the previous one has not expired yet.

10. The card will help you fix your credit history.

If you are not given a large loan, then there are problems with your credit history. This can be fixed by issuing a credit card with a small limit. You can take a little on the card and return it right there.

This will show that you have become an exemplary borrower. “Banks evaluate potential borrowers based on their credit history. A credit card, with careful use of borrowed funds and timely refund of money, helps to form a positive credit history or correct it, “the press service of VTB noted.