number of all kinds of cards in the pockets of our citizens has been steadily increasing as lending cash already enjoyed much less popular than before.Many borrowers had to make sure that, despite the assurances of advertising banks, this loan product is quite expensive.
Credit cards today have become much more popular tool, but financial literacy of the majority of Russians still remains very low.Even with a "plastic", many borrowers do not know what the grace period and how it is used correctly.
features different maps
mixing the concept of "plastic" and "credit" card, some do not distinguish between these sometimes different banking products.Meanwhile, not every "plastic" is a credit card.
In fact, any card is just a tool to access the bank account.From what to what kind of account the card is linked, will be affected, it will be calculated or credit.
Debit (estimated) card simply allows to pay for the goods within the balance of their own funds to its owner.Credit Card also allows its owner to get access not only to the personal money, but also to loans that the bank provides to the borrower.
notion of grace period
Any loan is issued on the basis of urgency and payment, so for the use of money has always charged a fee, calculated as a percentage.To minimize or even avoid it allow it credit cards with grace period.
Deciding to take advantage of such cards, each borrower must learn the rules to use it to extract the maximum benefit from existing financial instrument.Features of the mechanism of exemption detailed in the banking contract.After studying his points, you can understand what a grace-period.
In fact, it represents a specific time period during which the preferential lending regime, namely: you can use the borrowed funds without payment or to pay for them at a reduced rate.The main condition here is becoming a fact of full repayment of the debt before the expiry of this period.
Benefits concessional lending
loans with grace period is very convenient, for example, in cases of irregularities or delays in salary revenues.However, the approach to their selection and arrangement must be very careful because of the risk runs out you days of grace.
If full pay until the end of the grace period does not, will have to part with the interest that will be accrued in the amount of borrowed funds.In this case, the total cost of borrowing may unpleasantly surprise unsophisticated borrower.So you should carefully consider the value of the interest rate, and especially the calculation of the grace period, before putting his signature on the loan agreement.
Features calculate
grace period borrowing can be like renewable and have overdraft credit card.To understand what a grace-period, in each case is difficult.After the program the different credit institutions differ in the methods of its calculation, and the number of operations that are relevant to its flow.Additionally, the length of the grace period is not rigidly fixed.In different banks, it varies from 1 to 2 months.Most often used an interval of 50-55 days.
Nuances use cards with a grace period
collecting information about what a grace period, pay attention to some of its most important features.First of all, it is usually only applies to non-cash transactions, such as payment card through the goods or services in trade and service enterprises.
Having a card with a grace period, you can start using it immediately, but it must be remembered that the first operation carried out by means opening a grace period of its validity.Many they forget that cash withdrawal from an ATM - is also a banking transaction, and it is not reduced.
Types grace periods
question of when to start the first Grace period is quite complicated to understand.To answer this question you need to learn the procedure for calculating the timing of an interest-free loan, which is used by banks.Despite all the variety of loan programs on card products, there are 2 main types of grace periods:
- generated for each transaction (tranche).It means that within a specified period (grace period) after the transaction no interest is not charged.They will be calculated and charged by the bank only after the repayment of the resulting debts.
- In the aggregate transactions made during the reporting period.Then take full advantage of the grace period, will have to repay the debt to the day, which marks the end of the period.Grace period becomes a floating value, the maximum for the transactions made at the beginning, and the minimum - for the latest postings.
fact card with a grace period is a very comfortable and "advanced" financial product that enables the correct approach to borrow money from the bank at a very advantageous principles.The only prerequisite is an absolute concessional lending financial discipline borrowers.You must clearly understand all the features of the selected option of borrowing, to carefully monitor all expenditures and keep a record of how meticulously decommissioned and credited to the card funds.
