The wallet is bursting at the seams, because the pockets for more cards are over: credit, debit … just payment. Who among us does not know this problem? Banks are outdoing each other in ideas on how to attract new customers or what offer to make to keep existing ones with them.

Not everyone likes taking a loan, which is why solutions that make a credit card appear in our portfolio have been very popular for many years. What is it for and is it worth having? 

What is a credit card?

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A credit card is a tool that must be skillfully used. On the one hand, having it can improve our financial turnover, but on the other, if we do not make timely repayments, it can lead to an increase in debts.

What path did she travel before she was in our wallets? It appeared more than 50 years ago, when consumer credit began to be available to the public. Once it was synonymous with prestige, now it is a permanent element of financial everyday life. Who can apply for it? How does it work? Let’s find out.

Credit and payment card

Credit and payment card

Let’s start with the official division of payment cards. We include credit cards and debit cards. It is customary to look a little different. A distinction has been made between credit and payment cards (i.e. debit cards), so for a better understanding of the subject, we will stick to this nomenclature.

Visually, the credit card is no different from the payment one. Has a chip, PIN and expiration date. We will make paypass payments, finalize the internet transfer, and withdraw money from an ATM, although it is a less profitable option. So what’s the difference between these two cards? First of all, the origin of capital that we can use.

Having a credit card means that we manage the money from the bank to the limit it has set. A traditional payment card involves the use of your own funds, which are collected on your personal account. When they end, our room for maneuver also ends.

Obtaining a credit card

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We will not receive the entire amount awarded immediately, with the obligation to pay monthly installments. This is the case with consumer credit. When we decide on a credit card, we have the resources ourselves – exactly as we need them.

In practice, it doesn’t matter if we use PLN 50, PLN 5,000, or maybe even PLN from the available limit. Importantly, repayment of credit card receivables can be free, unlike many installments in regular loans. The secret is the interest-free period – if we settle all payments on time, we won’t incur any additional costs.