Credit card, credit limit - what is it?

Almost every bank offers its customers credit cards on which a limit is set. The borrower can use the money, and then must return them in due time. The limit is usually renewable, so the client can again withdraw funds from the card. This is very convenient, because you can use the money at a convenient time. You do not need to collect documents, you do not need to waste extra time. But if you have a credit card, the credit limit can stimulate purchases that are not always necessary.

About the credit limit

What is the credit limit ? This is the amount of money provided by the bank to the client for permanent use. With the receipt of a banking product, it already has funds, so the borrower can withdraw cash or pay for purchases. To return a debt it is necessary in time to avoid superfluous charges.

Almost every financial institution provides a grace period, including Privatbank. A credit card, the limit of which can initially be small, is used by the client for 50-60 days without interest. The specific conditions in all banks may differ. If you use the service competently, then the client has the opportunity to profitably withdraw funds not once.

In case of non-payment of funds, interest accrues in the specified period. This service has only a credit card. The credit limit may increase with time, but this is established by the decision of the bank.

No limit

With the card order, the customer is given a limit, otherwise it will not be issued. But there are cards with zero balance. Usually they are debit. For example, this is the product of Visa Platinum "Binbank". About the peculiarities of use and maintenance must be learned from the staff of the institution.

This card is considered debit-credit, which is provided instantly. When issuing on it, there is no money. Within a few days, according to the decision of the bank, a specific amount is provided, about which the client will be notified by SMS or call. Then the card becomes a credit. This is the map of "Corn", "Euroset" makes it possible to profitably issue money in debt.

Dimensions of limits

The bank sets a limit depending on the client's solvency. Here, too, wages are taken into account. If the client has been issued a credit card, the credit limit may increase with time. This is affected by improved solvency. Usually 50-100 thousand rubles are provided.

When the client is not solvent, the limit is rejected. The calculation rules in each bank are different. As a rule, payment should not be more than 25% of income. All expenses of the client are necessarily taken into account. The size of the limit is affected by the content in the property of real estate, cars.

Increase the limit

If there is a credit card, the credit limit can be increased. In each bank it is calculated in its own way. For example, in the "VTB-24" client submits an application, a certificate of income, a document of ownership. Consideration of the application lasts no more than 3 days, after which a decision is made.

"Binbank" independently decides to increase the amount, if the customer constantly uses the services and returns the money without delays. Therefore, the limit can be increased with:

• Providing documents;
• Constant use of funds.

How do I know the credit limit?

To learn about the amount of the amount provided, you can use the following options:

• You should familiarize yourself with the contract that was issued when you applied to the bank;
• The amount is indicated in the check from the ATM;
• The client can order an extract in the bank;
• There is a convenient internet banking service.

Such methods are available with each card, including the "Corn" card. "Euroset" provides an opportunity to use your personal cabinet. From it it is convenient to make various payments and transfers.

Decrease of the amount

The amount can be not only increased, but also reduced. This occurs when:

• There is an outstanding debt;
• There is a risk of non-return of debt.

This is done unilaterally, as indicated in the contract. If desired, the client has the opportunity to reduce the amount. For example, he is given 300,000 rubles, and the client does not withdraw such money and is afraid of losing the card. Then he can make a statement in which to ask to reduce the amount of funds to the desired amount. Granting a limit is an advantageous service, because if necessary you do not need to look for where to borrow money. It is only necessary to repay the debt in time.