Shopping for a loan – a few words of truth about credit cards
How convenient it is to use credit cards, everyone who has had them in their hands knows. Shopping in stores, supermarkets and large shopping chains without spending your own money from your wallet, as well as withdrawing cash from an ATM in an emergency “emergency” are the main advantages of credit cards. It is no wonder then that their use and number of credit card transactions increases especially during the holiday season.
Credit cards with attractive repayment terms
It is not surprising that banks have noticed this tendency and are increasingly offering their clients credit cards with attractive repayment terms.
It is worth looking at this phenomenon and thinking about why we are increasingly and more willingly using shopping with deferred payment given by credit cards . Perhaps this is because paying by credit card is convenient, and we do not spend our money or funds from our account, but they are bank funds.
In addition, we will pay much later for purchases made in this way, and the entire cost can be spread over a longer period of time or repaid in convenient installments. It is worth noting that most credit cards offer a 56-day period without any interest, so if we fit within this period, shopping with deferred payment will not cost us anymore.
Undoubtedly, credit cards are very comfortable and functional, but do they have only the advantages? Are there no additional “hooks” and disadvantages behind this convenience? Before we decide to take advantage of the credit card offer, let’s look at it carefully.
It is worth first figuring out what commission we will pay for using the card, how much insurance it is, and for how long it was issued. In addition, it is worth finding out what are the interest on the loan per month, quarter or even year.
It is also worth knowing what the commission on late repayment is, and what amount of the minimum deposit is required from the card holder.
Let’s analyze your financial possibilities
Therefore, before we sign a credit card agreement, we should seriously analyze our financial capabilities, because we have to reckon with the fact that untimely repayment of liabilities arising from the use of plastic money can cost us dearly and we can simply not cope financially.
Of course, banks are currently very willing to offer their clients credit cards , adding to the offers some interesting gadget. However, before we decide to sign the contract, it is worth studying it in detail and becoming acquainted with it.
Cash withdrawals from credit cards should be a last resort
It should be remembered that cash withdrawals from credit cards should be a last resort, because the bank sometimes sets a very high commission on such a transaction. It all depends on the specific offer. Most often, such a commission is determined as a percentage of the value of the transaction – however, it usually ranges from 8 to even several dozen zlotys.
We’ll find out how much we will pay for cash withdrawals. In addition, the amount of commission also depends on whether the ATM belongs to our bank’s network.
It is worth knowing that every credit card is insured against unauthorized use. However, this does not mean that the customer can sleep peacefully if it is lost or stolen, because the bank will cover the costs of all unauthorized transactions.
Regardless of everything, any theft or loss should be reported to the bank in person as soon as possible, or if it is impossible via the hotline. We will learn the consequences of losing a card by reading its regulations.
Let’s get acquainted with the terms of the card
It is worth emphasizing that before we decide to sign a credit card contract, you should read it carefully and familiarize yourself with its terms so as not to expose yourself to any unpleasant situations or financial losses in the future.
For inefficient use of the credit card, life “beyond condition”, and a moment of inattention and its loss can cost us dearly, which in turn can effectively “cure” us from the convenient use of plastic money. Therefore, it is worth skilfully and wisely to use the benefits of financial market facilities and do shopping “wisely”, sensibly and with caution.