Credit Card is a plastic card, issued by a credit institution, and then the bank offers the customer a credit line, bounded by a certain limit. It will be necessary to provide documents proving your income, and most companies now prefer to calculate salaries for gray schemes. The bank will give you the credit card, but it will be also reviewed for the limit. Even more difficult it is to obtain a big limit for it. Basic plus of the credit card is an opportunity to use credit card as needed without the involvement of your own funds. In addition, interest is charged only on the used amount.
You can use a credit card to withdraw money in an ordinary ATM. But the percentage for such an operation is usually quite high. In this case, high interest rates on loans, coupled with the numerous commissions and additional charges increases the real rate of interest on loans up to 50% per year. Recently, terms of the use of credit cards began to soften. Thus, some banks offer a grace period during which interest on the amount of debt is not calculated.
Meanwhile, in a healthy market competition, banks are gradually reducing the interest on credit cards.
In the banks, credit card processing is practiced as a part of the contract to the target consumer loans, for example, when you make a loan to purchase home appliances. In the loan agreement the conditions for issuing credit cards are specified and the whole mechanism of its transmission to the client, for example, after full repayment of the first loan. As indicates Howard Strong in his book What Every Credit Card Holder Needs to Know: How to Protect Yourself and Your Money ”“ to avoid misunderstanding with a bank, a client should carefully read all the terms of any credit agreement (18).
Nowadays credit cards are of a great convenience. Typically, a credit card is issued by a commercial bank to obtain consumer credit for any urgent needs of the client, as this is the easiest option of processing the loan and the original amount of the credit facility is generally not very high. Credit card should be used wisely and cautiously as the technology nowadays is widely spread among the sphere of fraud. The main advantage of a credit card is the use of the credit funds. If a client receives a consumer credit, he must pay interest on a loan. A credit card is a convenient way to pay for the goods and services in the modern world. As a fact, nowadays people pay no more attention to the cash money, as they have credit cards. If a person does not like borrowing money, banknote may be fall-back option to use paper money. A credit card is absolutely indispensable when booking a hotel or renting a car. In such cases, the correct amount is not deducted, but it is only blocked on the client’s account. As disadvantages, there can be attributed the restrictions set by the bank for cash. The disadvantage of credit cards is that not all outlets accept credit cards to pay for their goods or services, but all more or less large retail chains can pay by credit and debit card.
With a credit card, you can withdraw cash using the ATM network of any bank. There can be some limitations when withdrawing the cash, but you can always get the remaining amount at another ATM or in the same, by entering your card and pin code again.