Many banks offer credit card approval to their customers. Before they can be used, however, it is necessary to know the conditions under which funds are provided. If you know how a credit card works, it is very easy to understand all the subtleties of a financial product.
Credit card – banking product offered to customers of a financial institution. You can then take out a loan for a specific amount and a specific term. The service is similar to a standard consumer loan, but there are still differences. How a credit card works, you can find out the terms, requirements, and principles of the provision.
This is determined by the bank
Each institution offers its own conditions. They are beneficial to people somewhere, but somewhere – not. How does a credit card work in most banks? It has a bet, a limited time and an amount. Some are closed.
The average price for Russian banks is now 24-35%. A low percentage does not always mean a benefit because an additional insurance amount can be taken out. The credit period is usually 3-5 years.
To receive a credit card, the customer must meet certain requirements:
- Russian citizenship;
- Age – from 18 to 70 years;
- good credit history.
These are the basic requirements. Some programs require you to submit an income statement. As a rule, loans are issued without a guarantor and collateral.
How do I get a credit card?
Banks spend it in different ways. Plastic in a can is often provided on a personal visit. It is often sent by post when the customer has already used the services of a financial institution.
There are banks that deliver cards to your home via courier service, but these services are usually only available in large cities. To apply, you have to apply in the office or online. Sometimes a convenient delivery option is offered.
Depending on the bank, the following documents may be required:
- The passport.
Sometimes you need additional papers, for example, if you take out a large loan a job reference is required.
Characteristics of the work
Understanding how Good Finance’s credit card works or any other institution is very easy. It works like the standard salary. You can withdraw money through an ATM if you need cash. It also offers the ability to pay for purchases and services in stores.
You just need to know before you make the interest will be charged each time, as the interest rates for receiving cash payments and non-cash payments are usually different. It is necessary to pay the debt in good time so that no fines are imposed, which is why you have to repay a large amount
How does grace period work? This function is available in almost every bank. During this period you can pay the debt without interest. It is usually 50-60 days. If the loan is not paid during this period, the amount will be recalculated at the effective interest rate.
There is a limit on the cards. Usually, it is 300 to 500 thousand dollars. Often its size is determined based on the customer’s income. Some banks offer special cards, such as car loans. Then the limit can reach up to 1 million dollars.
The limit will also offer certain features of the bank. You can ask the institution’s staff why the credit card is not working. This can have various causes, for example, the lack of activation.