Credit card is an electronic payment card, also called a bank payment card, which is subject to a specific and individual credit limit for unexpected and urgent non-cash transactions related to the payment of goods and services via the bank’s POS terminal, the Internet, and an ATM or ATM, if you need to withdraw or deposit cash into your bank account.
The credit card, as the combination of word terms suggests
was the first way the banking industry issued loans, but, we know, nowadays loans are available in many different ways, and they are no longer issued only by banks but by non- Bank companies. Despite the diversity of loan types, credit cards are currently only a service provided by the banking sector’s lenders.
Possibly after years of credit cards will also be offered by private lenders – this is just a matter of time and competition. Credit cards, as mentioned at the outset, are granted a specific credit limit, unlike instant loans without a job, which is based on the client’s individual preferences and options.
According to various sources of information
The credit limit is up to EUR 10000. The credit limit works in parallel with the funds of a person’s bank account, so if the funds of a person’s bank account are spent, it is possible to pay with the credit limit funds. The credit limit is for unexpected financial spending, but of course it can be spent in any other situation.
If a person knows his spending habits, for example, he often misses the moment and spend money on seemingly unnecessary things, then a credit card is a good solution. However, in the event that a credit card is issued with a purpose that, at some point in the future, there may be a need for excess cash, the credit card needs to be carefully reconsidered. The annual cost of a credit card is relatively high, and if a person does not use the credit limit during the year, he has to overpay for a service that has not been used at all.
Emergency loan is tiny and only at probability level
If a person’s need for an emergency loan is tiny and only at probability level, it is more advantageous to issue a debit card and, if necessary, borrow money, such as quick credit. Obviously, the credit limit must then be repaid. Depending on the type of credit card, the credit limit must be repaid with or without interest payments. Interest payments should not be made in the case of a non-interest-bearing credit card, or a non-interest-bearing credit card, if the person makes a timely repayment of the spent limit, which is usually by the 15th of the following month. If interest is paid on the credit limit used, it is usually between 20% and 40%.
It should be noted that the creditor does not need to be informed about the use of the credit limit and repayment, because you have a specific credit limit that cannot be exceeded and a flexible repayment schedule suited to your wishes. Credit cards are designed according to internationally agreed ISO quality system standards, so they can be established anywhere in the world.