In the article below we will tell you how a credit card works. We describe who the credit cards are for and who they are not for.
Is it worth having a credit card?
The credit card is not for people who do not have cash and are unable to manage it. We do not encourage you to use a credit card if you are not comfortable with spending money or know how to use this card.
A credit card is for people with a headache for money. In addition, it is very useful for them. Apart from the obvious fact that thanks to your credit card you have a credit limit, which is granted permanently. Therefore, when making additional purchases that exceed your budget, you do not have to apply for a loan for people working abroad , you only use the additional limit on the card.
This is the standard purpose of a credit card. It is important to remember that it is important to keep up to date on what to pay off your debt on your credit card in the interest-free period.
The interest-free period is the period during which you can pay off your credit card debt without interest. Usually in Poland it is from fifty to fifty-five days. It is worth remembering because the interest rate on credit cards is quite high. Analyzing the market in Poland, it can be seen that the interest rate ranges from ten to even eighteen percent. The rule for interest is simple – the better, the more prestigious the card, the lower the interest rate.
The benefits of having a credit card
If you are prudent and know how to manage money, there is another reason why you should consider having a credit card . Many credit cards have free travel insurance. Therefore, a card with this option is an interesting alternative for people who travel a lot. Most often the only condition is that you pay for this entire trip with this credit card . If you travel a lot then you should consider credit card bonuses.
A bonus of some credit values is also that we don’t have to pay for currency conversion when we pay with this card abroad in a different currency. This is very important because we do not incur additional costs when traveling, thus saving some money when traveling.
It is worth considering whether a credit card will be better for you than a standard payment card. However, additional bonuses, such as the additional limit on the card, can appeal to many people that they choose a credit card .
However, there is a significant disadvantage to having a credit card. Most often it is an additional obstacle when applying for a loan for people working abroad . Even if we have no debt on the credit card, it affects our creditworthiness and credibility in the bank.