There is a huge competition among banks at the moment. In this regard, banking institutions are finding more and more new ways to attract customers. And I must say that many innovations come to us from European countries. Some banks simply send people credit cards by mail to attract new customers.
If you activate such a card, you can get a loan for a small amount and spend it at your own discretion. But, unfortunately, not always everything is as good as it seems at first glance.
Let’s consider some important points
Basically, if the bank you are a customer has sent you a credit card, there is nothing special about that. But if a credit card was sent to you from a bank that you have never applied to, then you should think about it.
Until the card has been activated by you, you are not responsible for the amount that is on it, but after activation you become fully responsible for the loan.
Therefore, if the card was stolen from the mailbox before you found out about it, you also do not bear any responsibility.
I must say that the interest on this type of loan is quite high — about 22%. But there is also the advantage that you do not need to submit any documents to the bank in order to apply for a loan.
In some cases, the card can be activated by simply calling the bank branch. But it should be understood that the interest rate will be approximately 30%. It will be very good if the credit card has such options as cash back and grace period.
There is no need to rush into signing a bank loan agreement. Study all the clauses of this agreement in advance. Pay special attention to the size of the commission and how much you will have to pay if you cash out. Most likely, a non-cash payment by card will be much more profitable than cash.
Of course, it will be very good if the bank branch is located in such a place that it will be convenient for a person to get to it. After all, everyone knows that a loan delay threatens the borrower with unpleasant consequences.
It is also worth noting that the bank charges a fee for servicing the issued card. This happens either every month or once a year. If both are present on it, it will certainly be overkill.
It should be understood that the system automatically charges money for servicing the card. Therefore, if you find that it lacks any amount, this is not at all cause for concern.