Credit and debit card. Advantages

Credit cards and consumer loans serve the same purpose - to provide the right amount of money at the right time. They are different banking products with different terms and conditions, with different advantages and disadvantages, and can be used independently of each other.

                                                                           Advantages of credit cards

Many people prefer to have credit cards as a fallback option for situations where unplanned monetary expenditures arise.

A couple of advantages of credit cards are:

Are always ready to use;

are linked to the name of the holder and can be instantly blocked if lost or stolen;

have a grace period during which you can use the bank"s money without incurring interest;

offer loyalty programmes - various bonuses and promotions, cashback, privileges from payment systems;

interest is accrued only on the amount spent;

To obtain it one should submit an application to the bank of his choice.

A credit card is the bank"s money that can be spent at any time. The use of the card is easy and convenient, and in all countries of the world today the credit card is a popular instrument for handling urgent financial matters.

Drawbacks of credit cards

Do credit cards have disadvantages?

They do, and here are the most prominent ones:

relatively high interest rate;
you may have a credit limit on your card that is lower than you need, and in order to increase it you need to actively use the card for a long time or provide the bank with extra proof of your ability to pay;
in most cases you have to pay a fee for the service of the credit card: as a rule, the fee is charged once a year;
in most cases you will have to pay a fee for cash withdrawal;
if you do not want to pay interest on your credit card, you should keep a close eye on the grace period and you should always pay your debt to the bank on time;
If you make a delayed payment you risk losing your grace period and interest will accrue instantly to the whole outstanding amount;

The scheme for accruing interest and calculating the minimum monthly payment is rather confusing.

Precisely because credit cards have disadvantages a lot of people use prepaid cards such as https://askwallet.io/rebelion