Credit Cards Key Benefits
Credit Cards Key Benefits – Commercial banks today offer a wide variety of products to the public. These include term deposits and investment accounts, which enable individuals to invest, money transfers. Which provide the ability to transfer money from account to account from bank to bank and even abroad. Loans that help to purchase expensive things or provide an opportunity to improve financial situation in a difficult life situation. As well as bank cards. Which are convenient for paying for purchases in stores. Credit Cards Key Benefits.
One of the types of bank cards is a credit card. Currently, banks offer them in large quantities, with home delivery or with registration in the office. In fact, credit cards are a renewable loan product that can be used constantly. Borrowing money from the bank at any time. Then returning it taking it again and again returning it, etc. But before filling out an application you should understand what indicators to evaluate such an offer as a credit card. As well as what advantages they provide.
Credit card characteristics
Any credit card is characterized by several basic parameters. Such as credit limit, commission for withdrawing cash from an ATM, grace period, mandatory payment, service cost. The credit limit is usually different for each person and depends on the borrower’s solvency. Which the bank determines based on the information it has.
The cost of service is another very important characteristic, which indicates how much you need to pay the bank per year, even if you do not use a credit card. Today, a credit card is also characterized by a grace period, i.e. the period during which interest is not charged on the card debt. Usually this period is 50-100 days. The bank sets the minimum payment per month, which must be made by the cardholder if there is a debt. It could be 5 or 10 percent.
Also, many credit cards now allow you to withdraw cash from ATMs, some with a commission, and some up to a certain amount and no commission at all. The ability to withdraw cash without commission is a very advantageous feature that is not available on all cards, but in fact it means that the bank’s money can be used for absolutely any purpose free of charge during the grace period.
You need to choose a card that is most suitable for a specific borrower. For example, some people care about the limit, someone definitely needs the ability to withdraw cash without interest, someone needs a long grace period. When a card is chosen for oneself and represents an optimal offer, it is not a burden, but a joy and is very helpful in many situations.
A credit card is essentially a revolving credit line within a limit, only for an individual. A person can withdraw cash if he needs it, or pay for a purchase in a store at any time. To do this, you do not need to apply for a loan every time. If the limit is large – 100-200 thousand rubles. or more, then such a card can be used to pay for an expensive purchase.
You can actually use the bank’s credit funds free of charge during the grace period. Two or three months is quite a sufficient period to pay off the debt. In addition, cashback can be provided on a credit card, i.e. paying it, the owner also returns part of the money spent to the account – usually 1-2 percent, which undoubtedly cannot but please.
Impact of the coronavirus on the global economy
However, at the end of February, the virus appeared in Europe and the Middle East. As a result, the fear of the coronavirus has reached global proportions. Currently, the problem is aggressively pressing on the quotes of various assets. Many experts are confident that a recession in the global economy is already inevitable. There is still no consensus on how the coronavirus story will end for the economy. Forecasts and stock indices provide very little information. In addition, the reliability of GDP forecasts, even in calm times, is rather doubtful. Therefore, it is unrealistic to accurately determine the consequences of the impact of the coronavirus on the global economy using a single indicator or index.
In order to at least roughly understand what awaits us in the future, it is necessary to closely monitor the situation in all markets. The history of previous shocks and pandemics will also help us in this. On the contrary, the price of defensive assets increased, and the premium for the long-term on US bonds fell to a minimum value, reaching the level of -116 points. To date, the development patterns of the situation indicate a high risk of recession.