If earlier debit cards were widely used, then in last years managers in banks offer customers to use credit cards. With managers, everything is clear - they need to fulfill the sales plan. But whether the client should use a credit card instead of a debit one is an interesting question. Therefore, let's talk about the disadvantages that credit cards have.

The money is not yours!

First and foremost is the feeling that money is free and can be spent. In fact, this is bank money, although you can really spend it. But then you have to return anyway.

grace period

About our site has already managed to tell some time ago. In short, the grace period is a grace period during which interest for using the loan is either not charged or charged, but their size is much lower than the usual interest rate.

For the client, the grace period is a great opportunity to use cash without interest or with a minimum interest rate. But there is also back side- as soon as the grace period ends, considerable interest is charged. And since not everyone remembers the exact end date of this period, banks probably make good money on such a service.

Limit

A credit card has a certain limit on the use of funds. Because the financial institutions trying to minimize their risks, then the amount credit limit, as a rule, does not exceed wages client.

Let's say that the limit is 30 thousand rubles. The client thinks, why not, in fact, spend this money on yourself, your loved one? And goes shopping. What is the disadvantage here, you ask? The downside is that you have to pay back the money. Imagine that with a salary of 30 thousand rubles, the client spends the same 30 thousand and now he needs to return this amount to the bank, and even with interest (not in all cases).

We want to say only that you need to know the measure in everything. If you want to spend money from a credit card, then spend no more than 25-40%, which you can then return without any difficulties. And you don’t need to use the entire loan, otherwise you can be completely left without means of coexistence for a while.

Problems with payouts

Actually, this is exactly what we talked about above. If a person has spent money from a credit card, he must return it.

For some reason, we often hear that supposedly money from a card is not equated to credit funds. How they compare! The bank in the absence of receipt of funds will also require their repayment in the same way. Therefore, you should not take a credit card lightly.

Bad credit history

This problem follows from the previous one. If a person for some reason does not pay the debt, information about this falls into his. Some bank customers do not believe this, believing that in credit history information is entered only on consumer or, say, mortgage loans but it's not! As soon as information about the delay becomes known, it is immediately sent to a person’s credit history, and he himself may not know about it until the moment he wants to take a loan from a bank.

Responsibility for payments on a credit card is no less than if a person took consumer credit in a bank, for example, to buy a car. It's important to remember this.

Credit card is a responsibility

It is extremely important to consider that the credit card holder is responsible for the credit card. Many people forget about this, but in the event of a loss or theft of a card, money can be withdrawn from it. As we know, attackers can steal money even if the holder has not lost the card - by making a duplicate of the card. In this case, the main problem for the holder is to prove the fact that he is in no way involved in the theft of funds, which means that he is not obliged to pay them to the bank. True, this is not so easy to do, because it is difficult to provide the evidence itself. This, in fact, should be dealt with by law enforcement agencies, but it is far from certain that they can prove the fact of fraud.

However, if the theft of money occurred, for example, with the help of a bank employee, in this case, you definitely won’t have to return anything.

Be that as it may, the map, as well as the data from it, must be taken very seriously.

Changing the terms of the contract

In some cases, the bank may change the terms of the agreement unilaterally. In such cases, the financial institution is obliged to notify the cardholder, but this may be, for example, an e-mail, which, quite possibly, ends up in spam. In other words, the borrower does not always know about the change in the terms of the contract until he is confronted with the fact. And this, in turn, can lead to much larger payments than those that the cardholder was counting on.

Is a credit card bad?

Surely you have formed the opinion that it is better not to mess with credit cards. In part, it is justified, but you need to remember that a credit card, like a loan, is financial instrument which must be used wisely. In this case, a credit card can come in very handy.

In our modern world now actively use credit cards to pay for goods and services. Let's try to determine what are the pros and cons of using this method of payment. First, let's understand what a credit card is.

Credit card is Bank card on which is installed money limit and which you can use 24 hours a day. One of the main advantages of credit cards is the convenience of payment. You don't need to make a special trip to the store to buy a product. You can do this while sitting on the couch, via the Internet using credit card.

You don't need to carry a lot of cash with you (which can be unsafe), you can pay by card.

And now it is available almost everywhere - in shops, in cafes in restaurants, and at gas stations. If you suddenly lose your card, by calling the bank, you can block it, thereby saving your money, then restore it and continue using the money. With cash, unfortunately, this will not work. Also, the advantages include the speed of transactions using credit cards, which saves time.

For example, you ran out of money in your account mobile phone, and you have absolutely no time to run and buy a recharge card or go to the terminal. And you need to make an important call right now. Using a credit card, you can top up the phone and literally in a couple of minutes you will be able to make calls. Or another situation, for example, it is very convenient for parents who have children. Often parents allocate a certain amount of money each month for pocket expenses. Unfortunately, children do not always spend them wisely. You can issue a credit card, set the limit you need, give it to a child and track his spending.

Credit card - many benefits

Now let's talk about additional benefits using credit cards that banks may provide. One such advantage is the grace period. What does it mean? Some banks set a grace period during which interest will not be charged to pay off the debt. For example, you paid in February with a credit card in the amount of 10,000 rubles, and until March 20 you can return this money to the card without interest. It is very comfortable!

Also, the benefits of using a credit card include cash-back service. This is when a certain percentage of the amount of money spent is returned to you.

Another necessary function of a credit card is the "Installment" function. Not all banks have such a service, but those who have joined such a program will notice an obvious advantage. If you want to make a large purchase, for example, a refrigerator, and you do not have the required amount on hand, you can use the "Installment" service. Thus, your amount is divided into several payments and the amount is debited from the card in installments.

You can have several credit cards, different banks and in different currencies. By the way, for those who like to travel, it is very convenient to have a credit card in foreign currency. Again, you do not need to carry currency in your pocket, and you can pay for any service or product abroad.

Pitfalls of credit cards

No matter how convenient it is to use credit cards, there are still disadvantages of such use.

The "negative" sides of credit cards include a commission when issuing a card and a monthly commission. Banks can charge you a one-time fee for issuing a credit card and set monthly payment to service the card. Also, if you overdue the grace period, you will be charged a penalty. Even if you repay only part of the amount, that's all - a penalty will still be charged.

The inconvenience can be attributed to the situation if the terminal does not work, and you want to pay with a card. Or if you want to withdraw cash from a credit card, you will be charged interest. Moreover, the percentages may not be small. Therefore, credit cards are better suited for non-cash payments. Also, not all banks have grace periods, and they themselves can set interest rate for the use of funds on a credit card. Such interest may not be the smallest and reach 30% per annum.

One of the last but very significant disadvantages of using credit cards is fraud. Now Internet fraud is so developed that you need to be very careful when paying with a credit card on the Internet. You should always remember that you never tell anyone your PIN code. Unfortunately, the bank cannot give you a 100% guarantee that your card will not be hacked. Despite all the disadvantages and pitfalls of using credit cards, the advantages are clearly obvious.

Using credit cards is easy, convenient, modern! Every year the number of people who use credit cards is growing more and more.

Today, a credit card can be found in the wallet of almost every person. Some banks literally force this product on customers. But is this financial instrument really useful and practical to use? What implicit nuances and difficulties can a credit card holder face? Let's try to understand this article.

Undoubtedly, the key advantage of a credit card is ease of use: there is always money on the card, which can be used to pay for goods and services anywhere and at any time.

The grace period on the card is the second important advantage. The grace period or interest-free period is the period during which no interest is charged on the funds taken on credit.

It is valid for about 50 days, but sometimes longer. This means that, having paid for the purchase with a credit card, within the period specified in the contract, you will be able to return to the bank exactly as much money as you spent. And not a penny more.

It is important to remember that the grace period does not work when withdrawing cash.

In addition, not all financial institutions provide their borrowers with an advantage in the form of a grace period. That is why it is important to carefully read the contract when applying for a credit card. It is possible that the client will have to return the borrowed funds to the bank with interest from the very first day of its use.

The low risk that your money will be stolen should also be attributed to the advantages of a credit card. If cash from a wallet can be easily stolen, then it will be much more difficult for robbers to withdraw money from a card. It will take a long time to select a pin code or hack the bank system, which not every fraudster can do. Although, this also happens.

To protect yourself as much as possible from unauthorized withdrawal of money from the card, it is important to remember a few simple rules:

1. Do not write down the pin code from the card on paper and store it next to the credit card.
2. When entering a PIN code while withdrawing cash from an ATM or when paying for goods in a store, it is better to close the terminal buttons with your hand.
3. In no case should you pass the card into the hands of third parties (even relatives), and, moreover, you should not tell them the password.

Try to always keep secret the CVV2, CVC2 or CID codes (the last three digits on the back of the card). Knowing them, a scammer can easily make any payment online without your knowledge.

Among other advantages, we should mention various bank loyalty programs, in which, when paying for purchases with a card, you get a part of their cost back or a wide variety of bonuses are offered.

This also includes credit card savings systems. As is the case with deposits debit cards. That is, if the card has own funds they charge a certain percentage. Unfortunately, such programs are not provided by all banks and not for all products.

Disadvantages of credit cards

Among the shortcomings, perhaps, it should be noted the commission for cash withdrawals. Moreover, even if you withdraw money from an ATM of your bank, the commission is still charged.

Often, after withdrawing cash through the terminal, the grace period for the return of money is automatically canceled. Thus, in addition to a fixed fee for cashing out, interest will be deducted from the consumer from the very first day of using the loan.

Almost every credit card involves an annual service fee. Write-offs of these funds will also have to be monitored regularly. Sometimes the amount is withdrawn at a time, and sometimes it is split. It is important to compensate the bank for the money withdrawn for servicing a credit card as soon as this fact has been recorded.

Otherwise, the map is formed credit debt, which will also have to be repaid with interest. To avoid annoying blunders, we advise you to connect SMS notifications. Many banks provide the service for free or for a small amount. However, the cardholder will always be aware of the movement of funds on the credit card account.

There are also various risks of fraud. Cards are stolen, pin codes are read using special devices, passwords are easily selected using programs. Finally, when withdrawing money from an ATM, the user always runs the risk of attracting the attention of robbers and becoming a victim of an attack.

Finally, one more implicit, but very significant minus of a credit card should be remembered. At the end of the grace period, the bank automatically begins to withhold interest from the loan amount. It is important to keep all numbers and dates in mind so as not to miss deadline return of debt.

Based on this review, we can conclude that, when used correctly, a credit card is a very useful and practical thing. The main disadvantages are commissions and an increased percentage, which in some cases can justify themselves due to such advantages as an interest-free period and the ability to withdraw money at any time of the day as needed.

And yet, the owner of a credit card should be very careful not to lose the “backup wallet” due to their own inattention and not fall into the “debt hook” due to the inability to plan expenses.

Today we have prepared for you another entertaining and useful article, in which we will consider the issue of using credit cards. Who benefits from this, what is the essence and pitfalls, do we really need them.

What is a credit card?

A credit card (credit card) is a standard plastic bank card, which enables the owner to make purchases and withdraw funds for borrowed money. In fact, you take an express loan from the bank and instead of a routine queue at financial institution, and signing a bunch of papers, they give you a small plastic card with a limited limit.

If you have collected a full cart of products in the supermarket, but you did not have the required amount with you, a credit card will save you. If suddenly you started a renovation, but due to limited funds you cannot afford to buy all the materials at once, you can also use a credit card. After all, she has a certain loan balance, most often it is 2-3 of your average monthly salary. Plus, banks kindly provide you with a grace period - usually about 50 days, during which you can return the money without an interest overpayment.

Subscribe to the site and you will learn how to earn online up to 24% per month with only $10. Monthly detailed report of our investment portfolio, useful articles and life hacks that will make you richer!

There are only two methods:

1. The client draws up the card himself. After watching ads, hearing laudatory reviews from your friends, or simply out of necessity, you urgently need money.
2. Aggressive advertising. This method was once popular in Russia. Representatives of the bank send you an already issued card by mail, it remains only to activate it by phone. Or they will sell it to you in large retail chains and shops.

Now let's look at the pros and cons of using credit cards.

Pros:

• You do not need to borrow money - beg from friends or apply to MFIs. Credit funds always at hand.
• Speed ​​of clearance. You can get a credit card in just 15 minutes.
• Grace period. Some banks give 30-50 days of interest-free use borrowed money. If you manage to return the money within the specified time frame, you do not owe anything.
• Some cards have linked cashback services. That is, making a purchase through a credit card, part of the money spent is returned to you back. In this way, you can even save money - buy with a credit card, get cashback, and then simply replenish the balance to the required amount.

Minuses:

• The bank puts you on a credit needle. As I wrote above average balance cards equals 2-3 of your average monthly wages. And this is no accident. Banks carefully weed out potential customers, their solvency, financial stability and credit history. And for the first time, they create such a loan limit that the client would give 100%. Then this limit is increased. Thus, dragging the layman into credit networks. An ordinary person does not understand that they give him not only the convenience and mobility of using money, but put him on a credit needle. That is, you become a permanent debtor.

• Using credit cards indicates that you are a financially uneducated person. It would seem that it is difficult to plan small purchases in advance, and not borrow 50-70 thousand rubles from the card. Answer - financial illiteracy.
  A classic example is getting a child to school. Some people cry that they do not have money for this and they are forced to take out a loan. But wait, if you already know what your child is through the year will go to school, why not prepare for it? After all, if you have the opportunity to repay a loan (And this, for a second, let me remind you of your debt +% overpayment), then there is money to put them aside in advance.

Many will object that life situations are different - household appliances, a car, etc. have broken down. In this case, I recommend not arguing, but just reading. You will understand a lot from it.

• You let your emotions run your wallet.. Entering a large shopping center with dazzling shop windows, fragrant smell, blessed music, you feel inner peace and tranquility. Walking slowly through trading floors you begin to experience all the developments of marketers - yellow price tags, discounts, sales, profitable offer and so on. And if you simply don’t have money to buy an unnecessary thing, then you won’t buy it. But a credit card that came to hand at the wrong time will do its dark deed - you will purchase unnecessary goods, also on credit. That is, your emotions, and not a sober head, will make this purchase.
• Debt is debt. The keyword is a credit card. That is, you actually apply for a loan, which means you automatically lose your money, and the bank earns on you.

Conclusion: Despite all its pros and cons, the use of credit cards today is as common as a classic loan or mortgage. Everyone knows that this is bad and robs us, but they can’t get away or are used to it. I won't be in this case take any strict position, but I’ll just say that I don’t use them myself and I’ll remind you again - The less financial obligations the faster you will become rich. Well, if it’s convenient for you to live in debt, use it to your health.

Thank you for your attention!