How does a credit card work? What is worth knowing?
According to data provided by the National Bank of Poland in 2019, as many as 42 million payment cards were issued in Poland. The first place in this ranking is occupied by, which is not surprising, debit cards – 80.5%. Credit cards came second – at the end of September 2019, the number of items issued amounted to as much as 5.8 million.
Credit card – what is it?
A credit card is a very popular payment tool that is also a form of credit. We apply for it in a bank or parabank. Because, as we have already written, it is a form of credit, in order to receive it, one must meet the conditions specified by a given institution.
The sheep’s creditworthiness is considered for ram. On this basis, the card limit is determined, i.e. the available funds that can be used. It is also possible to increase the limit if we meet the requirements again. Credit card debt must be repaid within a specified period by crediting your credit account.
Is it worth having a credit card? Transaction fees and commissions
The credit limit granted as part of the card is of course interest-bearing – usually around 10% per annum. But if the repayment of the card, i.e. the debt, takes place within the set time, we will not bear these costs. The interest-free period, which ranges from 51 to 61 days, guarantees the use of additional funds without costs. The card fee is not high, it is charged monthly (usually below USD 10) or annually (around USD 30). These costs can also be avoided. To do this, the monthly expenses covered with its use should exceed a certain amount (e.g. USD 1000) or we should make several transactions with this card within a month.
The credit card was created for non-cash transactions. Therefore, we will not pay any commission for shopping online or using it for contactless payments. However, other transactions may be charged with additional costs. We are talking about withdrawing cash from an ATM and making a transfer. The amount of additional charges depends on the institution’s offer. They should include a table of fees.
Credit card – in which bank to apply for it?
The choice of a specific credit card is an individual matter – other offers are prepared for the student, whether companies and other conditions must be met to receive it. Apart from these cases, as consumers, we should pay attention to the specific parameters of the offer. For a credit card, the most important will be: the limit amount, the length of the interest-free period, the interest rate after the interest-free period.
Credit and debit cards – similarities and differences in appearance
Credit and debit cards are the two most popular payment cards used in Poland. They are easy to confuse, because at first glance they do not differ in anything – their obverse and reverse are basically identical. The obverse has the number of the credit or debit card, name and surname of the owner, expiry date. The detail that allows you to quickly distinguish them is the name: “debit” – usually appearing in the lower right corner of the debit card and “credit” – most often found in the upper right corner of the credit card.