What is a credit card?

Let's try to figure out what a credit card is, who from Russian banks offers it, to whom, under what conditions. To begin with, it should be understood that it is not just a piece of quality plastic, but a full payment and settlement document. In most cases, this product is personified, that is, released on a particular individual. It can be used to purchase all kinds of goods and services in those outlets that are equipped with appropriate devices (POS-terminals).

Features of registration and use

How can a credit card be issued ? The procedure itself is very simple. A potential holder who applies to the banking department must be a resident not younger than 18, but not older than 60-65 years. However, the given framework is an average requirement. In the sense that some financial institutions issue such cards only from the age of 21. It also happens that they are no longer given to citizens over the age of 58. Since the described product is available in the product line of almost every bank, there can be a lot of nuances and it is not immediately possible to consider them all at once.

In addition, banks' credit cards are issued to customers who are able to confirm their solvency. After all, whatever one may say, it is one of the types of lending. And here creditors do not want to risk. The income can not be confirmed, but then the limit of funds available for use will be more than modest. By the way, about the limit. Any credit card is "tied" to a certain card account. It is on him that this limit of funds is established. You can use it both during payment for goods and services, or by withdrawing cash from ATMs.

Of course, when a debt arises, it is required to pay the bank interest on a monthly basis for the use of funds and return the body of the loan. So the first go into the income of the lender, and the second comes back to the card account. Simply put, the client is dealing with a revolving credit line that can be used forever. Rather, it is unlimited.

Now the main thing: can a credit card be profitable? Yes, yes and yes again.

First, there is such a thing as a grace period or a grace period. If, within a certain time, all the money taken from the bank is returned, the interest for their use is not collected. Some financial institutions, however, tend to set a rate that operates during the grace period. However, its size - usually 0.01% per annum - can be considered purely symbolic. Which, however, should not relax: "forgotten" when repaying 20-50 rubles can later become something more. The problem of forgetfulness is helped to solve the SMS-notification service about account movements, Internet banking, and a monthly statement.

Secondly, for some holders of payroll plastic, as well as bona fide borrowers, a credit card (Sberbank, by the way, is so famous) is issued on preferential terms. The first does not need, for example, to confirm the level of their income. In addition, both for those and for other special interest rates for the use of borrowed funds.