If we do not yet have a credit card, we can obtain one from any bank. However, a standard debit or payment card should not be confused with a credit card. The latter serves, in a way, as a loan, except that it is held on the card. It allows us to use additional funds made available by the bank at any time.
To obtain a credit card, we will need an identity card and a steady monthly income. Based on our credit history and creditworthiness, the bank will grant us a specific credit limit. Its amount will mainly depend on the level of income we earn.
What should we pay attention to when applying for a credit card at a bank?
We decided to ask a finance and banking expert, Michał Pakuła, from the Banki24 service. The most important thing is to check the terms on which the credit card is issued. The key ones are, of course, the fees associated with maintaining the credit card. Very often, for new customers, the card is issued completely free of charge and without monthly fees. The card may also remain completely free of charge later on, but the bank will require us to meet certain conditions. This most often concerns active use of the credit card, meaning making payments with the card and then repaying the debt on time.
At this point, it is worth knowing that repayment of a credit card is much more flexible than, for example, a cash loan. We do not repay fixed monthly instalments as we do with a loan. We can repay the debt in almost any way, provided that we pay the minimum amount set by the bank for a given month. We will be informed of this amount every month by an SMS sent by the bank. What is more, a credit card also has an interest-free period, which allows us to make interest-free purchases provided that we repay the entire debt by the agreed deadline. Such an interest-free period most often lasts from 54 to as many as 60 days.
Purchases Using a Credit Card
Paying with a credit card is practically no different from making payments with a standard debit or payment card. We can use it to pay for purchases in a shop or supermarket in the same way. Payments made online look identical as well. The only thing that distinguishes this type of credit card from standard cards is cash withdrawal from an ATM. We can withdraw cash using a credit card, but funds withdrawn this way with a credit card will carry a much higher interest rate than cashless transactions. The interest-free period also does not apply to ATM withdrawals. Additional interest on the negative balance is therefore charged from the moment the cash withdrawal is made.
As you can see, there is nothing complicated about making purchases with a credit card. What you should remember when applying for such a card is, above all, to review the available offers in order to find the most advantageous one. Once we have obtained such a credit card, we should remember to repay its debt on time.