Credit cards carry a number of facilities such as the ability to do shopping without spending money from your own wallet or even withdraw cash from an ATM in a situation when our bank account is empty. No wonder we reach for it so often when Christmas time approaches.
Increasingly, instead of paper banknotes, we keep plastic credit cards in our wallet. From year to year, more and more bank branches, practically without unnecessary formalities, enable us to receive an additional cash flow almost from the hand. Of course with the option of choosing the most convenient credit card repayment for us.
Is Christmas shopping on credit a good idea? Why do many people decide to do Christmas shopping with the help of credit cards ? Maybe that’s why the money they spend does not come from their wallet or bank account, maybe because they do not want to incur such large expenses at once. The resulting debt will be able to be repaid in the next several or even several months. Some pay off the whole in the interest-free period, which usually amounts to 56 days and will not incur any additional costs associated with such purchases on the credit card.
Repayment of the card debt
From the so-called distributed payment period for several dozen days in addition to the so-called zero interest, what does it actually mean? Easy-to-use plastic money, the most popular Visa or Mastercard currently issued virtually free of charge for the issue, free of charge for use. Not conditioned of having any personal account in a given bank or is it really a cash inflow? And maybe not only saving for the household budget but a temporary fantasy that allows us to lose ourselves in the feeling of a great opportunity for shopping for credit. On which we would never be able to afford, if not for this great opportunity.
When choosing a card, pay attention to the commission for using it.
What is the cost of the card’s insurance for the entire period of its validity, what are the interest on the loan on a monthly or quarterly basis. How much is the commission charged for late payment of the minimum part of the monthly liability and what repayment minimum is required. When determining the date of the obligation to repay the card, for example on the 15th of January each month, let’s think about whether we have the right amount of cash on the eve. Sufficiently enough to pay off this minimum, because from the north after this date, the penalty for failure to meet the conditions is often half of the required repayment, which in the next billing cycle can seriously strain our growing commitment to the bank.
Christmas shopping on credit
Banks to encourage more and more people to use credit cards often use additional forms of promotion. Under which, when creating a credit card, we can get some interesting free in the form of a tablet, smartphone or other electronic devices.
In order not to be so colorful, let us remember that the bank granting the card determines in advance the limit of expenses in cashless and cash transactions, and the latter is conditioned again by fees that are collected in the next month of our settlement. What does it mean? Nothing but increased control over whether it is worth deciding to withdraw cash from ATMs using a credit card.
The commission charged for cash withdrawal is usually determined as a percentage of the transaction value, limited to the amount of cash transaction limit granted, but also not lower than for example the range from PLN 8, even up to several dozen zlotys. About what commission is charged should be read in the regulations to the issued card of a given bank. Paying extra attention whether it is the ATM of our bank, to which we were issued a credit card, or completely foreign, and such a transaction of a foreign ATM and the payment of cash from it generates high costs.
Each card is usually insured against the so-called unauthorized use
This does not mean that you can be calm and the bank will pay for our purchases. You have to remember that any loss, the theft of the card should be immediately reported to the bank branch either in person or via the hotline. About what is our liability for unauthorized transactions also need to be read carefully in the regulations and ask in case of doubt. We need to know the risk before we decide on the card and sign the acceptance of the conditions for its issue and use consciously. It may turn out that the losses we have suffered for this reason will effectively cure us from making purchases with plastic money for subsequent months or years. What we do not wish anyone. Nothing makes you happy like a successful shopping.