Bank loans can be obtained in a variety of ways, including using a credit card. This can be an element of financial security in difficult times when we suddenly need extra money. However, there are many reasons to get a credit card from a bank and pay with it in shops and service points.
An interest-free period means that the credit card allows you to use the bank’s money without paying interest. In addition, the card makes it easy to book flights, accommodation or car rental abroad, as well as participate in many promotions and competitions.
Banks issue payment cards that can be divided into at least two categories. These are debit and credit cards. The first ones are assigned to the bank account, and when paying with their help, the bank client simply spends the money accumulated in his personal account. The credit card is part of the bank’s loan offer. Using such a card, the client can use the money that was provided to him within the credit limit. Therefore, when you pay by credit card, you also have a debt to the bank.
Due to the structure of the loan offer, which is addressed to credit card holders, it is worth choosing this particular lending method. Mainly because the bank provides the client with a certain credit limit, which can be freely used.
Within a month, the borrower can spend the bank’s money within the limit given to him, during the billing period. From the moment of payment, depending on the bank, the client has from 20 to 26 days to pay off the debt. In total, during the interest-free period, the credit card user has 50-56 days to return the borrowed funds without paying interest. If the client does not repay the debt during this period, he should take into account that the bank will charge him a fee for servicing the credit card and interest on the entire amount of the debt.
Attention! The interest-free period applies only to non-cash transactions, but if the client uses the card to withdraw cash from an ATM, interest on the debt thus incurred must be paid immediately.
Many features of a credit card allow you to use this form of credit. Thanks to this, you can easily book accommodation and flights or rent a car abroad when your debit card does not allow it. You can make purchases with a credit card faster, especially when making transactions in online stores.
Another important factor in the attractiveness of a credit card is that you can safely pay for your purchase using it.