Many people are just getting to know their credit card and don’t understand how others can make tens of thousands of it when credit crunches. So now a little mouthful that can be useful for a credit card.
What is a credit card good for?
You can use your credit card to spend your bank’s money, and for a while, without interest. This way, your own money can even interest. Credit card purchases also come with discounts, usually in the form of redeemable points or instant discounts. Others mow with tens of thousands of interest and discounts every year.
What is the fee?
First and foremost, you have to pay an annual fee, which is similar to debit card fees. On an annual basis it is around 2-8 thousand USD, but it varies greatly from bank to bank. There are also a lot of hidden costs, but these can be easily avoided.
Why is this good for the bank?
You can acquire customers and sell other products to your credit card holders. But of course, the bank also makes a lot of money for those who don’t pay their debts on time or make other mistakes. For example, they exceed their credit line.
What do I need to pay attention to when using a credit card?
There are actually 3 things to keep in mind. Pay your debt back on time! Don’t exceed your credit line! Don’t take cash with him! There are huge costs to all three major mistakes with a credit card.
How long do I have to repay the debt?
Until the end of the grace period. This is usually 45 days, but may vary from bank to bank. Each month begins a settlement period, which from the beginning you have some time to pay off the debt that arose during that period. For example, the settlement period begins on the 12th, the debt is settled by the 27th of the following month, which is the end of the Tülrem period. The amount of the debt will be the total expenditure between the two 12s. It’s a good idea to give your bank a debit authorization so you’ll never fail with your credit card due to forgetfulness.
Really no interest during the grace period?
No, but after the grace period, credit cards have the highest interest on credit products. It is not worth getting indebted this way, because for many it is a debt spiral. Also, make sure to give your bank at least the minimum amount at the end of the grace period, because if you do not do this, you will even be charged a high fee over interest.