Use a credit card for your own financial prosperity, it is possible. But not everyone knows about the rules that can help. At that draw attention to the credit card did not knock you into the debt trap and be a useful tool, in detail.
Rule one. Give up without a credit card grace period
In November 2010 the market offers both credit card with a grace period, and without it. Advantages of the first is so important and obvious that to use the card without a grace period when the market is a proposal to him, generally meaningless and fraught with too large financial losses.
"One of the features of most credit cards is the presence of grace-period: during the specified period of time the customer uses funds under preferential (often symbolic, such as 0.01% APR) interest rate, but if the loan funds are not returned within this period, the interest rate for credit increases accordingly, "- says Krzysztof Kuzhbik, board member of the retail banking business of Bank Forum, Commerzbank Group.
However, in some cases and in the absence of a grace period, you can use a credit card at a profit, although in this case, there are significant limitations. "If the bank does not provide a grace-period, upon payment of any goods or services by credit card money can actually spisyvayutsya account within 2-3 business days, and if the client will make the amount spent before that date, the debt will not arise and the interest on credit will not be assessed ", - says Sergei Golovan, head of card business of Astra Bank. However, 2-3 days - too little benefit, compared with the ability to use the money to 55 days at a discounted rate (a maximum grace period on the market over the last few years).
Second Rule. Return the entire debt at once
The credit card will be paired with a much lower cost if you before the grace period to return to her the entire amount, which with her shot, instead of paying interest on the loan and the monthly return on a small portion of the debt. It does not matter if your debt amounts to 1000 hryvnia and the salary is 3,000 hryvnia, and you fear that you will need until the end of the month the entire amount of salary.
In fact, you can always re withdraw funds from credit cards - again, at preferential interest rates, with minimal losses - if you face it it filled up the entire amount owed. At the same credit card to fill up as soon as possible. "It should be noted that the drag from maturing to the last day is not worth it.
There are situations when the money hit the account in a few days after you have done so in cash (especially if completion was not through your bank), "- emphasizes Eugene Mikhailenko, project sales of bank card products of bank" Russian Standard ". In addition, Prostobank.ua known cases, and when at completion in cash through a special credit card terminal bank issuing the payment was about a week.
But those who did not come fully to repay before the end of the grace period is necessary to know some details of the product. "Often, a credit card can not be" paying ahead ", that is, if you`re in this month made a $ 2 times the minimum payment, it does not mean that next month you can not pay," - says Eugene Zhukov, head of card products of the Bank of Cyprus. - If you repay parts - no harm will regularly monitor its change by obtaining statements.
"I advise you to avoid delay in the monthly payment, or for late payment are charged an additional penalty interest" - adds Balashov, Vitaliy, Head of Plastic Cards Ukrainian Business Bank. And indeed, according to bankers, there are cases when for non-payment of one hryvnia charged a penalty of 50 hryvnia, and two unpaid minimum required payments in a row in general can cause a denial of further services by credit card.
Rule three. Do not withdraw cash from ATMs
First of all, the recommendation not to withdraw cash from your credit card through an ATM is due to the cost of this operation: in some banks it reaches 5% of the sum withdrawn. But even if it is 3% of cash, but you`re shooting on a monthly basis in 1000 hryvnia, then it is easy to calculate that, for the year you pay the bank for this fun 360 hryvnia (for commission of 5% - 600 hryvnia). "Sly" commission not only in the fact that you think are paying for cashing a penny, but actually "accumulates" a significant amount.
Some banks will apply the principles of charging that make cash withdrawals even more disadvantageous. "The grace period of repayment are often only set for cashless purchases on the map when withdrawing cash, this mechanism does not apply", - said Sergei Golovan, head of card business of Astra Bank.
"Sometimes even that the bank provides a higher interest rate on the loan amount that the client received in cash" - adds Eugene Zhukov, head of card products of the Bank of Cyprus. The conclusion is - use a credit card payment by the retail chains in the terminal - as a rule, such an operation free of charge. Useful closer to the middle of the month to do an audit of funds remaining available to understand - whether it is time to move on purchases in a supermarket using credit cards to the end of the month had the cash, for example, for the trip.
Rule Four. Explore the commission under the contract carefully
When choosing a credit card (and even beyond - if you are already actively using such a product), it is advisable to study carefully the commission, fees and various charges to which you are costing this financial instrument. This is especially necessary in order not to use a credit card to unfavorable conditions for you, while other banks may be far more attractive offers suitable tariff specifically for your needs.
For this purpose we continuously monitor the market and revived select appropriate option. For example, if your card for the cost of withdrawing cash from an ATM at 5%, and you in spite of our advice is always using it that way, you should think: Do not change the map to the same from another bank with a commission of 3%?
In addition, after reviewing all of the Commission on the map, you can identify - whether in your contract such as to make it very unprofitable. In particular can often find an "extra" commission for those who rarely uses the card. "Pay special attention to the presence of the mandatory monthly fees. Remember that a credit card - this is an additional financing tool and not the fact that you`ll use it every month, "- advises Chumachenko Constantine, head of card business Renaissance Credit.
"Upon receipt of a credit card, always ask about the presence of any additional periodic commissions (except the interest rate on the loan), such as a credit service" - adds Eugene Zhukov, head of card products of the Bank of Cyprus.
Pay attention to the presence of additional payments for the completion of a credit card. In addition, avoid the fees, commissions, with the potential tangible - for example, payment in a currency different from the one in which open your map (in addition to the commission for the mere fact of such payment, as a rule, you can lose significantly on the course and pay for conversion) . More details about the various committees and how to calculate the actual spending on credit cards can be read in an article "How much does a plastic credit.
Rule fifth. Use a credit card regularly
In recent years, a trend stimulate banks customer payments. In other words, many financial institutions have established a commission for services inactive card accounts - for example, the 5 hryvnia per month per account, which you did not use more than two months. Not only is the option to "forget about the credit card for a long time" will cost you a round sum, so there is still a risk to get into debt up to their ears - because the commission will be written off just from the account, that is, you will emerge debt on which interest will accrue.
So if you`re a long time do not use a credit card, then return it back to the bank. "When you close a credit card ask for a certificate of full repayment of the loan just in case" - the Council Yevgeny Zhukov.
Rule sixth. Borrow from the bank only as a last resort.
If you really want to use credit card wisely and profitably, you should not take out money to buy various things for which you and so can save a couple of months. Limiting case of using credit cards with minimal financial loss to you - to "intercept" to paycheck (if the card has a grace period). Example of successful use of credit cards: you put money on deposit at an attractive rate, but this time using a credit card, knowing that a couple of weeks you will receive salary and return the entire debt on the card before the grace period.
So you not only lose money, but on the contrary more and earn. The second example: the hryvnia to the dollar has changed dramatically and you realize that a couple of days the price of equipment will increase after the dollar`s value. You withdraw funds from the card and buy urgently the thing on which hoarded - before the price for it has changed. Since wages are returning money to the card before the grace period.
Rule seventh. Limit yourself to the limit
Another law proper use of credit cards more psychological than financial. Readers of financial portals have become accustomed, that the experts do not recommend going on a spontaneous shopping in the mall with a credit card - because the few who in this case, one can feel the real extent of their financial spending. By the same range applies to limit myself in credit limit. So, if you`re not sure you can stay and not to waste all the money from the card, it is better to set the credit limit on your card is not in three of your salaries, and, for example, in 1000 hryvnia.
However, in this case, you have to at least carefully monitor their spending, so as not to "climb" in an unauthorized loan. "If you exceed your credit limit, turn on another" counter ", and the cost of your loan may increase by a factor of 2", - says Alexander Drozd, director of business with payment cards of bank "Kievan Rus".
Rule eighth. Before you use an overdraft facility - think twice
On a par with credit to "intercept" to paycheck, Ukrainians love to use an overdraft or line of credit open, for example, under the salary card. At first glance, it`s cheap fun - for example, if you took one week from the bank at 300 hryvnia rate of 25% per annum (and no other hidden charges), then it will cost you 1 UAH 44 kopecks, which is actually a small fee for compared to alternative attempts to borrow from friends. However, the grace period for such a product is almost never the case. Therefore, if such loans for you lifestyle, and if you have a credit card with a grace period - why pay when you can borrow money at virtually no cost?
If for some reason you still use the overdraft, then there are certain rules that will help you use this financial product with less to spend. "I advise you to try to take credit funds as close as possible to receive wage - then the amount of accrued interest, which means that your costs will be less," - says Sergey Mandybura, deputy head of credit cards of bank "Kiev". - Also, do not forget to monitor the status of accounts - expenditure of funds on the card account over the allowed overdraft results in the application of penalties, so that such situations should be avoided. "
"Try to keep the size of the debt on overdraft does not exceed 50% of salary, or (in most cases) within the next month you will again have to" borrow "from the bank until the next paycheck" - advises Chumachenko Constantine, head of card business " Renaissance Credit.
"The most common mistake holders of payroll cards with an overdraft facility is a sampling of all the permitted limit, with many delaying debt repayment until his retirement from the organization, and the limit is paid only during the payroll, that is such holders actually live in debt. It should be understood that in such situations holder loses his wages as part of it goes to paying off interest on debt, in addition, there is a risk of so-called "unauthorized overdraft" - warns Bashkatov Vladimir, head of the escort card products Pivdenkombanka.
Rule ninth. Do not skimp on the mobile banking
The only thing credit card holder is not worth saving (even if it is a pleasure worth 5 hryvnia per month) - a mobile banking service, and sometimes - e-banking. Regular SMS-notification and the opportunity at any time request the status of your account, as well as the ability to view your transactions with the card will save you from many troubles. As a minimum, this will give you permanent control over the funds - they are not "utekut" unnoticed during shopping, and if it will have access to the crooks, do not have time to remove all, and finally, there are more serious reasons.
"For most of the credit card scheme is typical when the accrued interest, other fees under the contract are debited from the account after the credit card charges at the end of the month (billing), often at the end of the day there is a credit debt, which was not at its beginning. To promptly repay the credit debt, check the billing statement, and connect the SMS informing about the traffic on your account, if possible, connect the Internet-banking "- the Council Sergei Golovan, head of card business of Astra Bank.
Alexander Drozd, director of business with payment cards of bank "Kievan Rus"
The most important thing, and I never tire of reminding us that you need to know the credit card holder - these are the rules to use a payment card as such at all. Because it is ignorance of basic rules leads to trouble relating to the fraudulent actions of malefactors.
And in fact, the first thing people should do, anxious to get a credit card, this carefully examine the conditions of its provision. We consider only the main aspects, since the nuances can be set.
First, you need to assess the conditions of the loan for expensive parts, ie carefully examine the tariff package in terms of various commissions and interest on loan funds. It is very important, because sometimes at the stated rate of interest and advertised, for example, 25%, its real size can not exceed the stated 2-4 times, ie in the range of 50 to 100% per annum. Although frequently, introducing your product, banks say not of interest per annum, but the percentage of the amount of debt in a month. For example, 6-7% per annum per month on the outstanding amount. At first glance, not much, but the math for a year!
Rule number 1 - to carefully study (not just read it!) Contract. If necessary, ask the bank officer to clarify the positions of the contract and tariffs that you do not understand.
Rule number 2 - ask about additional fees. You`re not an expert and may not know what all the bank may charge a fee. And can take a lot of things. For example, a fixed fee for a credit line, monthly or quarterly fee for the service line of credit, the quarterly payment of the debt on the balance sheet date, etc. etc. - "Perfection" has no limits.
Rule number 3 - always check the terms and conditions of repayment of debt and interest payments for the use.
Second, ask whether the conditions of service credit card grace-period, ie, the length of time from the date when you used the loan funds, during which you will total interest for the use of loan funds at the minimum rate, as a rule, 0, 01% per annum. Accordingly, try to pay off your debts up to the stated period.
Third, control your costs! If you exceed your credit limit, turn on another "counter" and the cost of your loan can increase by a factor of 2.
Fourth, try not to withdraw cash. Most likely, the bank will set a significant percentage of cash withdrawals on credit cards (up to 5% of the total). Use the card only for payment in the sales and service network.
And fifth, do not use the card for Internet payments. For calculations on the Internet, you can create a separate card, and it is better not credit.
Remembering what is said above, you will get only positive emotions and be able to evaluate all the convenience of credit cards.
Eugene Mikhailenko, project sales of bank card products, Russian Standard Bank
Existing today in Ukraine credit card market is represented mainly by two types of products:
Map with anuitentnym credit limit. This card is an analogue of the loan in cash when the customers are given a rigorous schedule of equal payments with the dates of their maturity. Map here is just a tool maturity. Available for customers poorly versed in the credit and card technology.
Card with revolving credit limit. This is more complicated and yet comfortable for the client product. With this limit a customer can use funds it in the right amount of it to repay debt before the settlement date and a large amount. But the most important thing is that most of these cards have a grace period, so-called "Grace Period", in which the bank does not charge interest for using drugs (usually 30-50 days). The most important thing is to ensure the full repayment of the debt before the settlement date. After this you can again use the limit in its entirety.
Chumachenko Constantine, head of card business, Renaissance Credit
Credit Card - a comprehensive banking product, which combines payment and credit instruments. Therefore, the basic conditions of credit cards is the interest rate on credit and commission for conducting payment operations. It should be noted that depending on the bank, there are many configurations of such conditions. Accordingly, the first and most important advice is to stage the choice of credit cards is to draw attention to the conditions of card lending conditions and interest debt maturity, the amount of minimum monthly payment, the availability of interest-free period of credit usage, as well as all possible additional fees.
The main difference between a credit card from the cash loan is that interest rates on credit is only calculated from the time of use maps and only the amount actually used. Payment of the minimum amount of the loan and interest is once a month, not later than the date specified by the bank. The interest rate may be different when you use cards to pay for purchases and cash withdrawals. Typically, the rate for the first type of operations below.
Vitaly Shastun, board member, Universal Bank
Credit card - this is, above all, convenient and practical tool to pay for goods and services. Classic Credit Card also has such a feature as a grace period during which no interest is charged on arrears. Client is very important to understand how this mechanism. In other words, holders of credit cards you need to know and understand the basic rates for credit cards, remember that a cash withdrawal from credit card to charge a fee to check the statement to know exactly how much to contribute funds to pay congestion, as well as to see improved for the period operation.
Vitaly Balashov, head of the department of plastic cards, UKRAINIAN BUSINESS BANK
If the overdraft is set to salary card (ie a card with a regular monthly intake), this greatly facilitates the control and redemption limit is reached. Overdraft on the map - it`s short-term loan for up to 30 days, ie at this time limit must be repaid, and the next day means you can use again.
Sufficiently relevant in this service for clients who receive salaries through bank card. Since the client does not have to wait for the moment of transfer salaries at stake, he can withdraw the required amount, and pay duty at the enrollment will be closed automatically. Actual overdraft in such a case, and delayed payment of wages for a few days.
Interest for the overdraft is calculated for the limit and actually used for the number of days as a client to use it. Overdrafts can be mounted on a card, but if the client does not use any fees, interest accrued.
Krzysztof Kuzhbik, a board member for retail banking, Bank Forum
Credit limit set on the salary card, it is best regarded as an "emergency supply", which can be used in case of short-term cash requirements (eg, before the holidays, or after a holiday). The amount of interest is "symbolic" because they are calculated on the amount actually used and paid for the actual period of use of a credit limit. For example, at a rate of 24% per annum and the amount of used credit limit 1,500 hryvnia for every day use of loan funds will be billed 99 cents.
Another convenience for the customer`s credit limit when using an automatic redemption of loan debt and interest at the expense of wages and / or other earnings on the card account.
Yevgeny Zhukov, head of card products, the Bank of Cyprus
Overdraft, in our opinion, is a more convenient form of credit for users of salary payment cards, as:
a) make full repayment of the debt the client may in the end of the term of the loan agreement, on a monthly basis to extinguish the interest only for use;
b) repayment of interest and the amount of debt is done automatically, when you receive a paycheck at stake.
But therein lies the danger, and also for the client - do not always have the financial capacity to repay the entire debt on the day of expiry of the contract (or after the repayment of debt a person does not have enough money). In this regard, it is better to prepare for the final date of the loan use - a few months before that date to start a "leave" on the map means so that when it is offensive payment amount was not crucial to the family budget.
Julia Morozova, director of card business development, VAB Bank
To effectively use the overdraft to the client must first check the terms of the contract and find out what time frame to repay the interest, but what - the principal debt.
Binding action of the client is the monthly monitoring of accounts. This is necessary in order to prevent the occurrence of an unauthorized overdraft.
Overdraft has many positive aspects:
* No need to waste time of the loan, you simply sign an additional agreement on the job;
* No need to pay the bank loan through cash - debt is repaid automatically when you enroll salary;
* There is no need to carry large sums of cash that can be lost or stolen;
* You can use the loan funds for any purpose, to make withdrawals from an ATM or pay a commercial network (cards with an overdraft work both in Ukraine and abroad), etc.
Vladimir Bashkatov, head of the escort card products Pivdenkombank
The most frequent mistake holders of payroll cards with an overdraft facility is a sampling of all the permitted limit, with many delaying debt repayment until his retirement from the organization, and the limit is paid only during the payroll, ie, such holders actually live in debt.
It should be understood that in such situations holder loses his wages as part of it goes to paying off interest on debt, in addition, there is a risk of so-called "unauthorized overdraft - the debt limit is reached, which has increased the interest rate.
I am sure in the near future the demand for payroll cards with an overdraft will be reduced, giving way to a credit card, as in the case of registration of a credit card separate from a salary to the holder will be easier to control the current debt and, lying down in time for Grace-period, to repay it by means of transfers from payroll cards to your credit.
Alice Lisitsyn, Prostobank