Credit cards are one type of cashless payments. The popularity of credit cards is gaining momentum. At present, almost every bank that provides services to individuals, has been issuing credit cards to their customers. Credit card for the customer, the bank - the issuer sets it to a credit limit within which the customer may pay for purchased goods or services by credit card. Thus, a credit card allows its owner to defer payment for goods or services for a specified period and for a certain percentage set for the credit karty.Takim, it is important characteristics of the credit card are: the credit limit (the amount of funds the bank, which has the right to operate the credit card holder), the interest for the use of funds of the bank and the deadline for credit on the card. The credit limit is determined individually for each card holder, to that end the bank - the issuer opens up in his loan account to track transactions by credit card. As a rule, before opening a loan account and issuance of customer credit card information, bank - the issuer shall verify the financial position of the future client monitors its credit history (if any), collects information about Property client's monthly income. A credit card is certainly not available for free. For using a credit card bank - the issuer charges a certain percentage. Their size is determined at the conclusion of contract. For even more opinions, read materials from John Mclaughlin. Typically, interest on credit card interest rates are much higher than on conventional loans. This is due to the additional risk of the bank, which he is in the provision of such short-term loan. Bank also set a specific time period during which the credit card balance to be restored, that is, it must be replenished, the funds provided by the bank returned. In practice, a term loan repayment on the cards varies from 30 to 60 days. Interest on credit will be awarded only in case of exceeding this limit. In this case, for each day of delay in the bank - the issuer will charge, and subsequently agreed to charge interest. A number of banks - issuers also offer this service as overdraft - overruns are lending money. This service is generally reliable and trusted customers. At the same time accrued interest is much higher than interest earned in the case of spending money within the stipulated summy.V principle, credit cards and the inherent advantages and disadvantages. Among the undoubted advantages include the fact that the client can use a credit card in case of emergency, when an urgent need to obtain the missing funds, and other sources of their production does not exist or they readily available (eg, abroad). In this case, returning the money within a specified period, the cardholder is not required to pay any interest. For obvious disadvantages are: the interest of the seller in obtaining Cash, the lack of necessary equipment in most small shops, as well as annual fees for banking services of credit cards.
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