Bank cards have been a part of our lives for a long time. More and more families are transferring their children’s out-of-pocket expenses to cards. This is convenient for both parents and children. Parents don’t have to think every day about how much money to give to their children, they can set spending limits. And for you, a bank card is an invaluable experience in planning expenses and using a financial tool.
Nowadays, almost everyone has a bank card. And some adults have more than one. According to statistics, the number of Travel Credit Cards issued (issued) by credit institutions, as of January 1, 2018, is 271 million pieces.
What Cards Are There?
Bank cards come in two varieties – debit and credit. You or your parents can put a certain amount of money on a debit card in advance. You may then use this card as you wish – pay the bill in a café or store, or withdraw banknotes from a cashpoint machine.
Unlike debit cards, credit cards don’t have your own money on them; they have the bank’s money. The bank lends it to you for a certain interest (credit). You can also pay with your card at the groceries or the movies, but you don’t have to pay back only the amount you spend.
What Does A Bank Card Do?
The purposes of bank cards can be different. Such a tool allows you to replenish your account, make and receive money transfers, such as salary or scholarship, withdraw cash, pay for purchases.
How Do I Get A Card?
You can’t get a credit card if you are under 18. But you can get a debit card with the help of your parents from the age of 6. But there are a lot of restrictions on such cards, and not all banks will give out such cards. Plus, until the age of 14, the card is tied to a parent’s account. Those who are 14 are the luckier ones. You can come to the bank with a passport, open an account and get a debit card in your name. But the presence of a parent or legal representative is still required. Also, one of the parents must sign a written consent to receive a bank card. However, if you already have the best-prepaid gift card, then I suggest you visit this link http://dressthat.com/www-prepaidgiftbalance-com-check-prepaid-gift-card-balance-online/ to find out how to do a prepaid gift card balance check online.
Grace Period
Grace period / interest-free period – this term means the period during which the client can use the funds of the bank without paying interest. When studying the terms of the card, you should pay attention to the following features of the grace period:
- Term. The more time is given for repayment, the more profitable it is. Depending on the requirements of the bank the duration of the interest-free period is from 50 to 120 days.
- Calculation rules. The cardholder should understand from which date the countdown of days given for repayment begins. It can be a specific date or the date of the first purchase. The calculation should be simple and clear, without any pitfalls or ambiguous conditions; otherwise, it can lead to undesirable costs.
- Conditions of granting. As a rule, the grace period applies only to cashless purchases of goods and services. If you withdraw cash, interest accrues from the first day. But on the market, you can find offers, the grace period for which extends to the withdrawal of credit funds.
To use the card comfortably and not worry about delayed repayment, it is worth checking with employees about the availability of tracking grace periods in online services or receiving reminders via SMS.
Interest Rate
Obviously, a lower interest rate will be more favorable to the customer. However, when studying the terms of the product beforehand, you should pay attention not only to the size but also to the type of interest rate – fixed or individual. In the first case, the interest rate is known before the client’s application is considered.
In the second case, the bank indicates a minimum value (for example, from 12.9%) and explains such a rate policy of an individual approach to the client. The final approved rate in practice turns out to be higher than the stated rate. When signing the loan documents, it is recommended to pay attention to the real cost of borrowed funds.
How to Choose A Bank?
Not all banks issue cards to schoolchildren. But many of the big players are interested in growing loyal customers.
- First of all, you need to look at the reliability of the bank. If the employees of the office with frightened eyes refuse to name the number of the license (mandatory document!), and the offices are presented only on paper, know that under the guise of a bank may hide a fraudulent structure. These companies do not guarantee the safety of your money, moreover, they can even bring your balance in deficit. Reliability of the bank is also a high rating agency rating, positive news, informative website.
- The second important point is the fees for servicing bank cards. This is probably the most difficult point. How much does the annual maintenance cost? Is interest paid on the account balance? What bonuses are available in retail chains? It is a good idea to get answers to these questions on the bank’s website or from a manager.
- You also need to understand how much it will cost you to withdraw cash from ATMs of the bank which issued the card, and from other market participants. How much will it cost to receive SMS notification, transfer from one card to another? It’s clear that servicing a card should not be expensive. It makes no sense to keep a few thousand rubles on your card and pay a few hundred rubles for “service. You also need to remember about safety and convenience. It does not hurt to find out how the bank issues the card passwords. One-time passwords for online purchases are considered more secure. A well-developed ATM network of the credit institution and its partners is a big plus.
As a result, a card with a credit limit allows you to pay for goods and services at retail outlets, receive benefits in the form of cash back, and not pay interest to the bank. These benefits usually come into force only when you meet certain conditions. Therefore, before choosing a credit card, it is worth familiarizing yourself with its main characteristics: the duration and conditions of the grace period, the size of the interest rate, the availability of commissions, the possibility of obtaining a cashback, and so on. Moreover, I am sure that you will choose the right card for your further travels.
