Terms of credit card processing: pitfalls
Before you use a bank credit card, you need to study all the conditions. Offers can be divided into two large groups:
- Pre-approved. Credit cards under a special offer available to customers with a positive reputation. Most often available to depositors, borrowers with a positive credit history and participants in payroll projects.
- On general terms. In this case, you need to apply for a card. It is similar to the request for a consumer loan. A stated package of documents and waiting for a decision will be required.
Credit cards have their own pitfalls. Ignorance of these nuances entails serious difficulties both financially and in dealing with the bank. Exactly:
- It is better to use the card within the grace period. You can plan your purchases so that you have the maximum amount of time left to repay them. In this case the overpayment will be less even if you violate the grace period.
- It is not recommended to withdraw money from your account. If you receive cash, the bank charges a fee for the transaction. In addition, interest may accrue from the first day.
- Delinquency spoils credit history. Any breach of obligations finds a violation in the credit history. The bank can then refuse to disburse funds for any needs.
- The issuance of a card cuts the credit limit. Even if the funds in the account are untouched, they are considered an open debt. This affects the amount of limit when you apply for new loans.
- The card account is closed for 45 days. You can’t get rid of the product quickly. Minimum closing time is 1.5 months.
- The annual service is written off at an unfortunate time. Often the growing debt and delinquency are due to the annual service charge-off. It’s important to keep track of your card balance.
How the grace period is calculated
The procedure for calculating grace periods is determined by the product. Banks offer 2 types of grace period calculation:
- From the moment of purchase. This is the most convenient way of calculating grace periods, which allows you to use your credit card in advantageous conditions. But only some banks offer this option.
- From date of issue. Your grace period is reset every month on the date you issue the product. It’s easy to get confused with this option. If you pay for a purchase at the very end of the grace period, there is not much time left for interest-free repayment.
At the moment, the calculation of the grace period is reflected in the personal cabinet of most banks. This greatly simplifies the use of funds of financial institutions. Following the grace period is the only way to use a credit card without interest.
How to increase your credit limit
Usually the bank increases the credit limit unilaterally. The privilege is available to responsible payers with a good history. If the issue of reviewing the limit is acute and urgent, it is worth making a request. The procedure is similar to a standard application. It involves:
- Applying to the bank;
- Submission of all necessary documents;
- Filling out an application to change the amount on the account;
- waiting for the answer;
- correcting the balance on the card.
To make a positive decision, it is necessary to prove the increased income or reduced liabilities. So you can say that large loans are repaid, and the salary has become higher. Of course, it is necessary to confirm with documents.