Credit Cards

Credit Cards

There are three types of credit cards, revolving cards, installment cards and those for delayed payment ( usually one month).
Revolving credit cards are those which allows the owner to pay some percent of total debt monthly. All credit cards are usually based on some sort of revolving credit. The client pays minimal monthly debt percentage, and the remaining debt is subjected to bank interest. Revolving card often offers the possibility of paying shopping bill in several monthly installments, without the interest and only in some specified retail stores that has the contract with client’s bank. There are also revolving cards that are included in some purchases, which means that you get it if you buy, for instance, TV set, and the seller offers you to pay with revolving credit card provided by the bank that have the contract with the retail store. In that case, the amount on revolving card would be the price of TV set, and it is your credit limit since. This way, you will get the revolving card without much formalities, and there won’t be any instruments of securing needed.

Usual minimal percentage of monthly payment is 5%, but if you demand, in some banks you can determine higher minimal of 10%, 20% or 30% for your monthly payment. Thereby, monthly installment can not be less than a certain fixed amount. Monthly charge is always calculated on the same date of month, depending on the contract you have made with the bank.There is no restrictions about paying, so if you want you can pay more than calculated amount, or even to repay all debt at once. In such case, you will even get more favorable interest.

There are two ways of paying the debit, and it depends on the card type and the bank code. First way of payment includes commission, fee and interest, and of course the payment of things you have bought using installment model of payment. So when you make the shopping of 300$ spitted on three installments, you will be ought to pay three months the amount of 100$, including three commissions, fees and interests for each month. Another model of payment includes all that debts in one, so you need to pay only 5% ( or other minimal, depends on contract) of all debt, and all remaining debt is next amount that counts in next month interest.

Some credit cards includes payments using installments only. Those are so called installment cards. This time the bank divides the amount you have spent in agreed number of installments, usually 3-60. First installment must be payed on the day of shopping, and all other installments must be payed same date on upcoming months, plus interest of the bank. Some banks restricts number of transactions that can be done using this type of card. If the bank has the contract with retail object, there is also possibility of baying goods using installment payment, even without interest.  Installment cards offers same conditions for early payment and credit limits as the revolving cards, that is explained before in this article.


There are also credit cards that made the entire debt in one month paid in a certain date in the next month, with appropriate interest. The period between the two methods may be longer than one month, for instance, on every 45 days.




Read More