Banks offer a number of credit cards with tempting terms, including interest-free. Understand which is best credit card to choose in 2022 to get the most out of it?
Some run from credit cards like fire, others actively use them when an interesting thing hangs in the store, and there is still a week before the payment. A credit card always allows you to always have borrowed money on hand. True, you have to pay for such convenience: interest on credit cards, frankly, bites.
We will tell you how to choose and apply for the best credit cards 2022, which will save money and not incur interest.
Best credit cards 2022
The most popular credit cards are those with a grace period, also called a grace period. This option, thanks to which the bank begins to accrue interest on the debt not immediately, but after a certain time: a month, 50 or 100 days. It is quite possible to meet the return of money during the grace period and not pay a single penny extra.
Then the loan will be virtually free for the client, except for the money that the bank takes for servicing the card itself. Just in this way, they advise using credit cards – not to bring to the accrual of interest, which is more than on classic loans.
How to apply for credit cards?
Getting a loan is a simple process. The potential cardholder must be of legal age. Everything else is in the hands of a particular bank. They decide what credit limit to give to a particular person, what grace period and so on. The approach to each client is flexible.
The easiest way to get a credit card is from a bank whose client you are already. Then the manager has access to information about the funds on the debit card: he sees that, for example, you receive a salary every month, and can calculate how much debt you can handle.
Step 1. Apply
Most major banks offer to do this online. As a rule, only one document is needed – a passport. Sometimes they will ask for another paper confirming the identity. In other cases, you may need a certificate from the place of work in the form 2-NDFL, which will confirm the income.
Stage 2: Wait for approval
Most often, this is a formality – if the documents are in order.
Stage 3. Get a card
You can go to a bank branch – just specify which office your card was brought to. In addition, many banks offer a card delivery service to home or work.
Step 4. Activate the card
It is not difficult to do this: as a rule, you will need to call the bank or go to the website of the credit institution.
How to choose a credit card without interest?
First, let’s figure out what is called a credit card without interest. Whatever banks write on advertising posters, the client will still have to pay for the use of money – it is important to understand this.
Interest-free cards are also called, the owners of which have a grace period (aka grace period) in which interest on the debt is not charged. That is, you paid for something with a credit card, you owe the bank the amount of your purchase – no more.
The grace period can be 30 days, and 50, and 100 – depending on the conditions of a particular bank. If you manage to meet and repay the debt within this period, no additional fee will be charged from you. Then the loan will be free. If you go beyond the deadline. Interest will begin to accrue.
By and large, there are two most popular types of credit cards, – says Vice President, Head of the Department for the Development of Credit and Debit Card Products of Renaissance Credit Bank Petr Karpov . – The first one is cards with cashback, it is advisable to choose them if you are going to regularly make purchases using this card.
The second is cards with an extended interest-free period. They are good if you use them occasionally and expect to get your money back within a couple of months.
When choosing a credit card, it is important to consider its main characteristics.
Credit limit. That is, how much money will be available to you. Usually, the more the better. But if you know to yourself that you can not pay off your debts, it is better to artificially limit this offer.
Grace period.Here, for sure, the longer you can not return the money, the better. The main thing is not to forget that the time is coming to pay your debts.
Annual maintenance cost. That is, how much you need to pay for the card itself to be active. Usually it is cost some amount for a year. But sometimes banks compensate for very attractive conditions on the card with the cost of servicing it. By the way, this money is withdrawn from the credit card itself, do not forget to pay off the resulting debt until interest begins to drip on it.
Keep track of your credit history
Offers of banks even within the same credit card for different customers may vary. First of all, credit limit. But other conditions may change, including the length of the grace period.
So we can say with confidence that it is profitable to be a reliable borrower. But breaking deadlines, accumulating debts and not getting in touch with the bank is the right way to the most modest conditions. And when the card expires, the bank will probably simply not approve the issue of a new one for such a client.
Choose your cashback
As with debit cards, banks also offer cashback programs for credit cards. That is, they are ready to return the money spent from the card.
But, as a rule, these are not absolutely all operations, but in some categories: travel, beauty, entertainment. So here you need to carefully study the available offers and choose what will be more profitable for you.
Earn income by spending credit card money
There is a relatively simple life hack on how to make money with a credit card with a long grace period. After receiving a salary, put it in a savings account or keep it on a card that accrues interest on the balance.
Instead of spending your paycheck, pay in stores with a credit card. This can be done for a month, or two, or three – as long as the credit limit and the interest-free period are enough. And when it comes to an end, just close the debt on the card with a deferred salary.
As a result, you did not overpay on a credit card and received income from money that was simply in the account.
There are several subtle points in this scheme. First, remember how much money you have left from your paycheck so you don’t overspend. And secondly, for many credit cards, the interest-free period is valid only for the first purchase. And for all subsequent interest will begin to accrue from the first day.
If you have just such a card, do not worry, there is a way too – just more complicated. When it’s time for a big purchase, whether it’s appliances, gadgets, travel packages or anything else, pay with a credit card. And put the money that you planned to spend for these purposes into the same savings account.
When the grace period has passed, the debt on the card can be repaid with this money, and you can keep the profit from the interest. This also works for several products, even a whole cart of food from the supermarket, as long as there is one check.
How to pay off credit card debt with a grace period?
In this case, interest begins to accrue on the amount of the debt. On credit cards, they, frankly, bite – such is the price for convenience. So it’s better not to bring them up.
If this does happen, you need to pay off the debt as soon as possible, or at least part of it.
After all, each day of delay increases the amount of debt. If, for some reason, you are now unable to return the money, honestly inform the bank manager about this.
He is no less interested than you in getting the money back, so he will offer options for a way out of the situation.
For example, some financial institutions make it possible to refinance credit card debt.
Can I withdraw cash from a credit card?
It is possible, but, frankly, banks do not like such operations. “Most banks do not include cash withdrawals during the grace period, that is, an increased percentage applies to these operations.
Can I use a credit card without interest as collateral?
It is very convenient to do this when you need an insurance deposit, for example, when renting a car. In this case, a certain amount will be frozen on the card.
If it is a debit card, you simply will not be able to use this money. And if it’s a credit card, then you won’t even notice, because such a freeze is not considered an operation, money is not debited from the card, so you won’t start accruing interest either.
When you return the car to the rental safe and sound, the money will be unfrozen.
How long you can’t use a credit card?
It all depends conditions of your bank. As a rule, if there are no transactions during the year, the bank will block the credit limit and close the card. Or simply will not reissue it at the end of the validity period.
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