How to choose and apply for a credit card
A credit card is a banking product that allows you to use the bank’s money at any time. The credit card limit is set personally for each person, after accepting the application and package of documents. Let’s look at how to choose the right credit card, what you should pay attention to and how to order a credit card online.
How to choose the best card
The registration of a credit card should be approached responsibly. Do not trust advertisements that promise cosmic bonuses and privileges. Let’s look at what parameters you should pay attention to.
What to pay attention to when choosing a credit card:
- Terms. The first thing customers pay attention to is the interest rate. Do not forget about the annual maintenance fee, the cost of sms-notification, the amount of penalties and fines.
- Rating. It is enough to go to a special service, where the rating of credit cards is published, and see the best offers. It allows to know the actual and demanded offers from major banks in a few minutes.
- Document Package. Offers are available with a passport or with proof of employment and income. In the second case the interest rate will be lower.
- Requirements for the borrower. Most banks are willing to issue cards with permanent registration in the country and income. The main thing is to meet the age limits.
- The method of obtaining. Available to receive the card in the office or through a courier. The second option is offered by banks that provide services through the Internet.
- Penalties and fines. It is important to know how much the debt will increase if the monthly fee is not paid on time.
- Fee-based services. Some banks include life insurance, SMS notifications, and mailings by default. Before you sign a contract you should find out if you can unsubscribe from them.
Important: Do not make a choice, taking into account the maximum limit. This is explained by the fact that lenders calculate it personally, taking into account the income and expenses of the client. New customers, in practice, banks approve the limit on the basis of the net income (w / s minus a living wage and monthly expenses) humiliated by 5 or 10. If the client uses the card frequently and makes payments on time, the limit can automatically be increased.
How to apply for a credit card
To make the procedure for obtaining a credit card take a little time, you should follow the instructions.
How to apply:
- Choose an offer, considering the credit card rating.
- Go to the bank’s website.
- Fill out an application, correctly specifying all the data in the form.
- If necessary, upload photos of documents and selfies.
- Read the results of the verification. Many banks make a decision within a minute.
- After the approval wait for the call of the bank specialist, who will explain how to get the card.
If there is no courier delivery, you will need to go to the bank office with the documents. The date and time will be discussed with the employee on the phone. At the bank branch you need to sign a contract and get the card.
If you have courier delivery you need to meet with a representative of the bank at a convenient time. Presenting the documents you need to sign a contract and get the card.
Important: If you make courier delivery be ready to take a photo with the card and passport. In this way the courier will confirm that the card is in the hands of the borrower.
How to use your credit card correctly
Many customers, after receiving a credit card, begin to make rash purchases or withdraw money. To avoid getting into a financial hole, you should consider a few simple rules for using a credit card.
- Do not withdraw cash – the bank charges higher interest if the customer withdraws cash and cancels the grace period.
- Grace Period – to avoid paying interest, it is better to return the money spent during the grace period.
- Don’t buy a car or apartment with a card – the interest rate on the card is higher. It is more advantageous to take out a personal loan and pay your installments on a schedule.
- Pay on time – delayed payment, even for a day, the bank may assess a fixed fine and penalties, for each day of non-payment. If you default for a long time, the amount you owe will increase.
- Assess your finances – spend as much as you can afford to pay back.
- Bonus Program – choose a program according to your needs, and follow the promotions of the partners.
- Don’t give your card to third parties – fraudsters may use your card to withdraw cash. Debt to the bank will need to be repaid by the borrower.
How to repay credit card debt
The terms of repayment are spelled out in the contract. The bank offers to repay the money spent within a grace period, excluding interest. If you don’t have the total amount to repay, you have to pay a minimum fee of 3-10% of the amount owed.
Once a month, on the reporting date, the bank sends a statement. There you can see when the grace period ends and how much you have to pay to repay the minimum instalment. Additionally the information is displayed in the personal client cabinet, which can be accessed for free.
You can make a contribution:
- at a bank office;
- through a third party bank or post office;
- personal account from another card;
- by transfer “from card to card”;
- through a self-service terminal.
Important: The methods of payment are registered in the contract. Additionally, to clarify the information at any time, you can ask a customer service employee.
To summarize, it is possible to order a credit card via the Internet. To do this you will need to study the rating of credit cards, choose the most favorable offer and send an application. After receiving a positive decision to apply to the bank office with your passport and get a credit card. If there is a courier delivery you can get a card at home or at work. The main thing is to use the card correctly, to make timely payments and try to return the money spent in a grace period. Otherwise, your credit history will be damaged and your debt will increase.