A credit card allows you to take a quick loan. However, when choosing a card, you must take into account the additional fees and costs of unpaid debt. You always have to take into account the fee for using the card itself and additional fees related to e.g. its insurance. The credit card can be chosen from almost all banks in Poland. The advantage of having a bank account to get a credit card is that you can even have several cards.
This advantage also comes with some dangers
With more credit, it is easier to succumb to shopping temptations and you can imperceptibly fall into the debt loop. Especially since banks do not require cardholders to repay their entire debt. So you can only pay the minimum amount you pay, usually three to five percent, and split the rest into installments.
The interest rate on cards, although more and more attractive, is generally much higher than the interest rate on a loan, e.g. in ROR or even a cash loan. This means that the monthly repayment of the card in the minimum amount is intended only for debt service and the capital part remains almost intact. Purchases made in this way can be extremely expensive.
When deciding on a credit card, you should consider whether it will be used only for cashless payments and the debt will be repaid in full after the expiry of the interest-free period, or whether it will be used to take out a loan for a longer period, and the debt will be repaid in installments.
The most important parameters
Are the annual cost of using the card and the length of the interest period. In the second one, the card’s interest rate will also be of great importance. You may also want to, for example, collect cash from your credit card during holiday trips. Then, when choosing a card, it’s worth checking the amount of commission charged by the bank for taking money from an ATM – and these can reach up to several dozen dollars!
To sum up – it is definitely worth having a credit card – at least due to the fact that its proper handling will allow us to build a good credit history! However, it is important that reasonable use of the card will allow us to use interest-free credit for our payments even for a period of almost two months!