How to choose the credit card?

The convenience of credit cards is obvious - you don’t need to save money for the necessary purchase for many months, constantly issue new and new consumer loans, there is an opportunity to repay the debt without interest. In case you somehow lose it, it is not going to deliver a lot of problems for you.

The demand for this banking product explains a huge number of offers - today hundreds of banks issue various types of credit cards. Which credit card is better and how to choose it?

What you should note when choosing the credit card?

The first thing you should pay attention to when choosing a credit card is the terms of use and crediting. The most important indicators are the credit limit, the annual interest on the loan, the cost of servicing, the availability and amount of the grace period, the terms of repayment of the debt, the complexity of issuing. The cost of maintenance and clearance varies from bank to bank. Issuing of the credit card is made for free, in general, but most of users should pay for exploiting it. Do not forget to also ask about the availability and duration of the grace period - the time interval between the purchase and payment of the debt, when you can return the money without interest. It is usually 50–60 days, although there are exceptions. Do not forget that you will have to repay the loan regularly - which means that this process should be convenient. The more repayment channels, the better. Today, it is possible to repay the debt not only in bank branches, but also through ATMs, payment terminals, as well as using online services. The availability of online banking, mobile applications and sms-alerts also increases the comfort of using the card.

Pay attention to the percentage for cash withdrawals. Although credit cards are designed primarily for non-cash payments, almost all of them allow you to withdraw money. However, the percentage can be quite high, reaching 7% of the withdrawal amount.

And finally, some cards provide additional opportunities - for example, you can get discounts in stores and restaurants, earn bonuses in airline loyalty programs, and sometimes even get back a small percentage of their purchases, the so-called cash back. If you are interested in such benefits, specify whether the card participates in any of these programs. If the possibility of withdrawing cash from a credit card is of fundamental importance to you, then give preference to a bank with a wide network of ATMs.