Grace period - a grace period during which the borrower can use credit funds without paying interest.
A card with a grace period for lending (grace period) is a convenient financial product that allows, with a competent approach, to borrow money from a bank on favorable terms.
The only prerequisite for concessional lending is the absolute financial discipline of borrowers. You must carefully track all expenses and scrupulously keep records of both debited and credited funds.
Get a credit limit of up to 1 million rubles and use credit funds for free for 65 days under the program "Card with a grace period of 65 days"!
This card provides you with round-the-clock access to funds anywhere in the world:
- VISA international payment system card
- Revolving credit limit from 30,000 to 1 million rubles
- Credit limit validity period 2 years
- Grace period for crediting: 0% per annum 65 days for using credit funds
- Interest rate on the loan (in case of non-repayment of debt during the grace period): 28% per annum
- Commission-free payment for goods and services in Russia and abroad, including via the Internet
- Discounts in stores within the framework of joint programs with the VISA payment system, as well as with the Bank's FRIENDS CLUB
- Free connection and maintenance of the service Internet Bank iBANK / Mobile Bank
- Free connection and maintenance of SMS-informing service
Credit program conditions
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Loan currency |
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Grace period for crediting (grace period) |
The crediting period established by the Bank, during which no interest is accrued on the amount of the formed and fully repaid debt. The condition for the start of the grace period is the absence of debt obligations |
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Operations subject to the grace period of crediting |
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Credit limit validity period |
2 years from the date of issue of the card (equal to the validity period of the card) * |
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Annual Interest Rate |
During the Grace period of crediting - 0% In the absence of full repayment of debt during the Grace period of crediting - 28% |
* The renewal of the contract for a new term is carried out automatically without the obligatory provision of documents on the conditions in force on the date of renewal, provided that there is no debt, incl. overdue, on the date of renewal and provided that during the term of the credit limit, the overdue debt arose no more than 3 times and for a period of no more than 5 calendar days in each case
More details
More details
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Ranges of values of the total cost of a Consumer loan | |
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Penalties for violation of the terms of the loan agreement |
In case of non-fulfillment or improper fulfillment by the Borrower of obligations to return the loan amount to the Bank and / or to pay interest for the use of the loan, the Borrower shall additionally pay the Bank a forfeit calculated on the amount of overdue debt under the Agreement, including the amount of the overdue principal debt and the amount of overdue interest accrued for the period of violation obligations in the amount of 20% per annum for each day of violation of obligations. |
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The procedure for obtaining a loan |
To a separate plastic card Visa Classic or Visa Gold (servicing is carried out according to the tariff specified in the Collection of tariffs for settlement and cash services provided to individual clients in Bank Orange LLC) A credit limit of 50,000 rubles and above is provided for a Visa Gold card. |
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Card service fee |
In accordance with the tariff plan of the collection of tariffs for settlement and cash services provided to individual customers in Bank Orange LLC |
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Payment period |
From the date of the first transaction using the credit limit funds (from the date the amount was debited from the account). |
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Minimum payment |
If on the date of the end of the grace period for lending, the loan debt is not fully repaid - 5% of the amount of debt as of the end date of the grace period / the last working day of the month and the amount of interest accrued from the day following the day of formation of the debt / date of interest payment in the previous month before the date of the actual payment of the minimum payment. Paid no later than the last day of the month following the month of the end of the grace period / the last day of each next month |
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Early repayment |
Possibly at any time without commission |
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Conditions for calculating interest |
Interest is calculated daily on the balance of the actual debt |
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Security |
Without collateral |
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Information about other agreements that the Borrower is obliged to conclude and (or) other services that he is obliged to receive in connection with the Consumer Loan Agreement |
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Decision term |
No later than two working days |
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Duration of the decision |
30 calendar days |
Bank cards
Credit, income and debit cards with cash-back function Visa Classic cards with an optimal range of banking services and low cost of service
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Frequently asked Questions
What is the validity period of a card with a grace period for crediting?
2 years from the date of issue.
What is a grace period for a loan?
The grace period for crediting allows you to use credit funds free of charge within the approved credit limit for 65 calendar days (maximum) from the date of the transaction using the card (payment for goods / services or cash withdrawal). This grace period is a maximum of 65 calendar days. If you fully repay the debt on the card no later than the day of the end of the grace period, the Bank does not charge interest for the use of credit funds.
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Why do I need a grace period for a loan?
Situations often arise when you need additional funds to pay for your expenses, both planned and unexpected. A card with a credit limit and a grace period allows you to make any purchases without incurring any additional costs (if the debt is repaid within 65 days from the date of payment).
When does the grace period start and when does it end?
The beginning of the grace period is any day of the calendar month in which the first provision of credit funds took place (inclusive), and the end is the date falling on the 65th calendar day from the first day of the grace period (inclusive). The grace period is calculated in calendar days. With the full repayment of all debt (including interest and commissions, if any), the grace period is restored and starts again with the first subsequent use of credit funds.
If, before the end of the grace period (inclusive), the entire debt has not been repaid, then for the grace period for using credit funds, interest is accrued at the rate specified in the lending program.
How can I find out when the grace period ends?
For your convenience, you will be informed about the date of the first debt on the grace period of crediting and the duration of the grace period by SMS to your mobile phone.
What transactions are covered by the grace period of crediting?
The grace period for crediting applies to:
- transactions for payment for goods / services using a card, incl. committed via the Internet;
- operations to transfer funds from the card account;
- withdrawing cash from ATMs of the Bank, as well as ATMs of third-party banks.
Is there a grace period for cash withdrawals from ATMs?
Yes, the grace period applies, among other things, to withdrawing funds from ATMs and cash desks of banks, both in Russia and in any country in the world. In case of repayment of the full amount of the debt during the grace period, interest for the use of credit funds (including those received in cash) is not charged.
How can I pay off my debt on a card with a grace period?
You can pay off the debt in any way convenient for you:
- at the Bank's cash desk to the card account.
- Deposit cash without commission through the CONTACT money transfer system.
- Top up the card account by wire transfer from a third-party bank. The commission is charged in accordance with the tariffs of the bank from which the transfer is made.
- Deposit cash through the terminals of the QIWI system. Commission in the amount of 1.6% of the payment amount (min. 50 rubles).
- Deposit cash - no commission
All commissions are paid in excess of the payment amount.
What is the minimum payment during the grace period of the loan?
If on the date of the end of the grace period the debt is not repaid, a minimum payment is formed, which includes 5% of the amount owed as of the end date of the grace period and the amount of interest accrued for the actual days of using credit funds from the beginning of the grace period, which are payable no later than the last day of the month following the month of the end of the grace period.
In the future (if the entire debt has not been paid off), monthly, starting from the month following the month of the end of the grace period, as of the 1st day of the month, a minimum payment is formed, amounting to 5% of the debt, as of the 1st day of the month and interest payable no later than the last day of the month following the month of data generation.
If within the specified period the minimum payment, the accrued interest (for the period from the date of the beginning of the grace period / from the date of the last payment of interest to the date of the next deposit of funds) and commissions are not paid, a penalty will be charged on the amount of the overdue payment for each calendar day of delay. In the event of an overdue debt, the unused card limit is blocked.
To determine the exact amount of repayment of the minimum payment - on the day of the operation, receive an extract or contact the client manager of the Bank.
Will I be able to re-use the grace period?
Yes, after the full repayment of the card debt, the very next day you will be able to use credit funds with the possibilities of a new grace period for crediting, since your credit limit is revolving. Please note that if, after depositing funds on the same day, card debit transactions are carried out within the credit limit, debt repayment and, in fact, the end of the grace period will not be recorded.
The terms and expressions used by banks that are used when issuing credit cards are incomprehensible or unfamiliar to some people, and sometimes even mysterious. But everyone wants to understand this, so the material contains most of the terms and expressions associated with credit cards. This will help orient those who decide to use a bank credit card for the first time.
And here's what came of it:
Credit card
A credit card is a type of bank plastic card, which is tied to the personal account of the bank, on which the bank opens a credit line for the client without issuing collateral and guarantees. Getting a credit card is more difficult than a debit card because issuing a credit card means getting a loan. The client has to fill out a questionnaire, according to which the bank determines the credit card applicant's solvency.As a rule, a credit card of a commercial bank is issued for obtaining a consumer loan for any urgent needs of the client. This is the simplest option for obtaining a loan and the initial amount for such a loan, as a rule, is not very large.
Some banks practice issuing a credit card as part of an agreement for targeted consumer lending, for example, when applying for a loan for the purchase of household appliances. The loan agreement stipulates the conditions for issuing a credit card and the entire mechanism of its transfer to the client, for example, after the first loan is fully repaid. Often there are situations when a person, receiving a credit card by mail, is indignant, believing that the bank is simply imposing a card on him, and he allegedly did not ask for it at all. And in order not to get into such an awkward position - carefully read all the terms of any signed loan agreements.
Credit line
A credit line is a legal obligation of a bank to a borrower to provide him with loans within a certain period within a certain range. The term of the credit line is tied to the term for which the credit card is issued, this is basically 1 - 3 years. A certain limit on the amount of a credit line is set in the form of a credit limit.Credit lines are revolving or non-revolving. When lending through credit cards, revolving lines of credit are mainly used.
Lending limit (credit limit)
Lending limit (credit limit) is the maximum loan amount set by the bank for each client individually, but it cannot exceed the total lending limit set by the tariff plans (conditions) of the bank for each specific type of credit card.The individual credit limit (credit limit) is determined by the bank for each borrower based on the individual solvency of the client and the conditions of the bank. The size of the established credit limit is communicated to the client after the issuance of the credit card, and can be changed by the bank unilaterally.
Changes to the credit limit are made in the following cases: - upward, at the request of the client in connection with an increase in his average monthly income or at the initiative of the bank, if the initial credit limit was set less than the estimated amount; - downward, if the client violates the procedure and the amount of loan repayment. The bank transfers information about the change in the credit limit to the client by post, telephone or other communication.
So, the credit limit is the amount within which the client can use the bank's funds to make purchases and withdraw cash using a credit card. During the validity period of the card, the client can repeatedly use the loan within the available balance of the lending limit - mastering the loan, then repaying it and mastering it again.
Remaining credit limit
The rest of the limit is the amount of funds within which the client can carry out expenditure transactions at the expense of a bank loan provided through a credit card and it appears for the first time at the moment of activation of the credit card.The remainder of the lending limit is the positive difference between the amount of the lending limit set by the bank and the actual debt on the loan (within the amount under the agreement).
The available balance of the credit limit is the amount that the client can still use with a credit card and is the difference between the credit limit and the amount of the current debt to the Bank. The available balance of the lending limit arises after partial use of the loan, after full or partial repayment of the loan ahead of schedule, after paying the minimum mandatory payment, etc.
What is "PIN" or "PIN" for short?
A PIN-code is a personal identification number consisting of a number of numbers or letters determined by the bank. It is transmitted by the issuing bank to the holder of the payment card and is a secret code (password). Typically, a personal identification number contains 4 to 12 characters.It is issued to the client in a sealed and darkened envelope from the inside at the time of receiving a bank card (credit or debit).
Personal identification number (PIN-code) is the secret code of your card, therefore it must be kept confidential. It cannot be stored together with the card, it must not be disclosed to third parties, including relatives, acquaintances, employees of a credit institution, cashiers and persons advising you at the time of an ATM transaction using a bank card.
What is a PIN code for? It is needed to identify (verify) the cardholder, it is akin to your electronic signature. With the help of the PIN-code, the client gains access to his account. The PIN code is entered when withdrawing cash from ATMs, at cash dispensing points, at retail outlets to pay for goods and services, when making non-cash payments for goods and services via the Internet.
Some banks practice imposing their loans by sending a potential borrower a credit card and PIN code via mail in two plain envelopes. One contains a PIN code, the other contains a credit card. With this transfer method, the risk of fraudulent withdrawals prior to the transfer of the credit card and PIN to the customer is very high. When choosing a bank to issue a credit card, this important point must be taken into account. The temptation to activate the card and take the offered loan (in cash) is always very great, which is what this service is based on. But "free cheese is only in a mousetrap", so it should be borne in mind that such loans have a very high interest rate.
What is card activation?
Activation is a procedure for canceling the technical restriction established by the Bank when issuing a credit card for a client to perform transactions using a card. A technical limitation is understood as the unconditional provision of negative authorization answers to transactions using a credit card, regardless of the state of the available balance of the credit limit on the card, or any other conditions. The activation of the credit card is carried out by the client.How to activate the card? For security reasons, the credit card is inactive at the time of receipt, that is, before the customer can use the credit limit, the credit card must be activated. To do this, you just need to complete any operation using the PIN code.
The most convenient way to activate the card is through an ATM. To activate the card, you need to insert it into the ATM, enter the PIN-code and perform any operation, for example, "Request the balance", "Cash withdrawal". After that, the credit card will become active and you will be able to use the credit limit. You can also activate your credit card at ATMs of other banks.
The card can also be activated by contacting the round-the-clock service of the bank's card center at the phone numbers provided to the client, or at any bank cash desk, whose employee activates your credit card through a terminal with a PIN-code input module.
What is Authorization?
Credit card authorization is a coded request from the settlement center or credit card issuer, authorizing a transaction or payment upon request with a given credit card.This procedure for the Bank's confirmation of the Customer's right to perform transactions using the card consists of two operations in one:
- an electronic request to use a credit card to carry out an operation (to pay for goods through a terminal or to dispense cash through an ATM).
- obtaining permission - to pay for goods or withdraw cash from an ATM.
- Positive answer - confirmation by the Bank of the corresponding right of the Client to use the requested amount, and granting permission to carry out the Operation;
- Negative answer - the Bank does not confirm the corresponding right of the Client and does not provide permission to carry out the operation.
- There is no connection with the issuing bank. You can try to pay later, maybe the connection will be restored.
- There is no remaining credit limit available.
- You entered the wrong PIN for your credit card at the ATM.
- Etc.
Minimum required credit card payment
The minimum required payment is the amount of funds transferred by the client to repay the loan. Payment of the minimum required payment confirms the client's right to continue using the credit card. The amount of the minimum payment and the deadline for its payment are indicated in the statement-statement, which is sent monthly by the bank to the address specified in the agreement.The minimum required payment includes:
- the minimum part of the loan, set in accordance with the bank's tariff plans for credit cards. So, in a number of banks, the minimum part of the loan is up to 5% of the credit limit set for the client by credit card. If the client is going to repay the loan faster, then the amount of the payment must be increased;
- the amount of interest accrued on the actual loan amount for the expired billing period (month);
- the amount of all commissions and other payments due for payment in the expired billing period, in accordance with the tariff plan of the credit card. All tariffs for commissions and other payments must be specified in the loan agreement;
- the amount of penalties and penalties, if there are delays in the repayment of the minimum mandatory payments for previous billing periods or other violations of the lending procedure stipulated by the agreement;
If the client has made the next payment in the amount of the minimum payment or in an amount less than the minimum mandatory payment, then from the amount received, the bank will first of all pay off penalties and penalties, then interest and commissions. And the loan itself is repaid last. by residual principle... And delays in payments may entail an increase in the amount of interest and penalties and punishment in the form of a decrease in the credit limit or the suspension of further crediting altogether.
Can I pay more than the Minimum Payment? You can't, but you have to pay more than the minimum payment. You can deposit any amount at your discretion up to 100% of the used loan. In this case, the amount of repayment of the loan itself will increase. And the available credit limit will be restored by the amount of the principal debt paid.
In addition, do not forget to officially, by registered mail, notify the bank of all changes in the details of the borrower under the agreement (change of registration or residence address, change of name, phone number, etc.) during the entire crediting period. This will help to avoid problems with delivery of invoices for payment, problems with the loss of a credit card, etc.
What is a profile?
A questionnaire is a document completed and signed by the client, which contains all the data about the client that the bank needs. According to the rules of individual banks, the questionnaire can be considered as an independent document. A loan application form is one of the documents on the basis of which the bank makes a decision to establish a credit limit. Before making a decision, the data of the questionnaire are analyzed and checked by the bank.What is Grace Period for Lending?
A grace (interest-free) loan period is a period of time during which you can make purchases, pay for services using your credit card and not pay interest, provided that all loan debt is repaid on time.The grace (interest-free) period of lending, which is set by banks, involves the additional attraction of customers for lending. In most cases, it is set by banks for a period of 30 to 50 days.
The grace period for crediting consists of a billing period + a billing period. The calculation of the grace period can be seen on an example. So, if the credit card is activated, for example on June 5, then from June 5 to July 4 there will be a settlement period (the period of the loan disbursement), and from July 5 to July 24 inclusive - the payment period (the period of settlements with the bank for a loan). In order for the bank to apply the grace period for lending, it is necessary to pay all the loan debt by July 24.
Financial service users are often confronted with the concept of a credit limit. Usually this term is closely related to a bank card. Let's consider what a credit limit on a card is, how it is set and changed.
The essence of the credit limit
By executing a card service agreement, the bank's client receives plastic with a certain limited amount of funds, that is, with a credit limit. In other words, the credit limit is the amount within which you can use the card, carrying out settlement transactions during the period specified in the agreement (from a year or more). During this period, the card is used depending on the credit line established on it. There are many types of credit lines, but for individuals there are only two options - fixed or renewable. A credit line with a debt limit is an expressed right of the borrower to use funds once or repeatedly within the term and limit set by the bank.
- Non-renewable (simple) line of credit- financing the client with borrowed funds in parts within the period specified in the contract. Debt repayment does not increase the possible card limit, but, on the contrary, reduces the initial loan amount. As a result of using the loan, the debt will be repaid and the loan will be closed.
- Renewable line- lending to the borrower as needed within the established limit. In this case, the client can take part of the money or the entire available amount, carry out full or partial repayment of the debt, and then reuse the money. This type of credit line is most often used for bank cards, making them convenient for use. So, if you pay off the debt in full, then the limit will be restored in full, and if you make a monthly minimum payment, you can use the balance of the credit on the card. The freedom of operations with the card makes it a universal means of payment, allowing you to use funds at any time, when needed.
Credit limit
The main purpose of establishing a credit limit is to reduce the risk of non-repayment of debt by clearly limiting the amount for each client. Banks today use three types of limit: zero, minimum and maximum.
Null
This credit limit means that there are no borrowed funds on the card, that is, their amount is zero. There are several circumstances under which such cards are issued.
- Firstly, personal desire of the client to issue a debit card... Usually banks try to impose more services than are required of them, and instead of debit cards issue universal ones, but with a zero limit. So there is a chance in the future to increase the specified amount of borrowed funds and receive additional profit from its possible use.
- Secondly, non-compliance with bank requirements... A credit card with a zero balance is issued when the borrower is unreliable, but the financial institution wants to get him as a new client. The bank's decision can be reviewed unilaterally.
Minimum
A small amount of borrowed funds is usually issued at the initial stage of cooperation with new clients, which means that there is a credit limit on the card, but its size is minimal compared to the average market value. In addition to new clients, people with little work experience, low income or no credit history can count on a small loan. The value of the minimum limit varies from 1 to 5 thousand rubles.
Maximum
The policy of setting maximum monetary limits for the card is different for all banks, therefore, the amounts that the borrower can receive are significantly different. The maximum limit depends on:
- jar;
- card product;
- specific customer data.
For example, the limit on the amount on a standard credit card in Sberbank is 600 thousand rubles, and in Alfa Bank - 300 thousand rubles. The difference depending on the type of Sberbank card: standard - 600 thousand rubles, youth - 200 thousand rubles. The client's data, his credit history, as well as personal preferences are the last limitation in determining the size of the credit limit.
Determination of the credit limit
There are several dozen methods for calculating the minimum amount of borrowed funds that can be issued to a client's card. In practice, banks use mainly three of them:
- Setting a limit at the level of the minimum value of the parameters - the borrower's ability to service the loan, the financial position and stability of the client, the availability of collateral with high or medium liquidity.
- Determination of the credit line amount in the amount of 25-35% of the average monthly turnover of funds on the client's account opened in any other bank.
- Calculation of the overdraft limit as 40-50% of the average monthly money turnover on the client's account served in the creditor bank.
The available amount on the card for each borrower is individual. When calculating its maximum values, banks operate not only with financial indicators, but also with a deep analysis of client data: credit history, rating in a credit bureau, the nature and duration of closed / open delinquencies, etc.
Those borrowers who have documented their financial position and are also regular customers of the bank or participants in salary projects can count on a larger limit.
Limit change
If the credit limit has already been set, what does this mean for the borrower: the bank, on the basis of the client's data, made a decision on the amount of money that may be transferred to its use. At this stage, you cannot resize, but with the help of some recommendations, after a certain period of time, this can be done.
Increasing or decreasing the size of the credit on the card is exclusively the prerogative of the bank. The procedure for changing the limit is based on the conclusion of the analytical system, which monitors all client data.
Key points of interest:
- use of the card (passive, active);
- the frequency and amount of receipts to the card account;
- possible delays in debt repayment / making the minimum payment;
- provision of additional documents or certificates confirming the financial stability of the borrower.
Based on the above information, the automated system assigns an intrabank credit rating to the client, based on which the card limit is increased or decreased. There are also options for closing the credit line as such, requiring full repayment of the debt. The decision to change the amount of borrowed funds is communicated to the client in the form of a message to his mobile phone or to his personal Internet account.
Increase in the size of the loan at the initiative of the bank
There are standard conditions, the fulfillment of which affects the change in the card limit upwards. The main ones are:
- active use of a credit card for more than six months;
- timely debt repayment / monthly minimum payment;
- the available limit is not the maximum for this card product;
- positive credit history under agreements served with the issuing bank and other banks.
If the conditions are met, the finance and credit department approves an increase in the amount of available funds by 15-25% of the initial value. Otherwise, the limit can be reduced, left unchanged or "frozen" until the debt is fully paid off.
Changing the limit at the request of the client
This wording does not mean that the borrower can independently increase the restrictions on the card, it is only to inform the bank's client about the desire to change the limit. Cases when you can write an application for a new card:
- If an application for a card product was submitted without documents of solvency, then the provision of the latter can significantly increase the confidence of the bank.
- The client's income has increased significantly, and he can document this fact.
- The borrower has been using a credit card for more than 6 months, making various payments (via the terminal, on the Internet) and cash out at an ATM.
- No delays on any loan, regardless of the creditor bank.
- At least 6 months have passed since the previous increase in the limit.
- The client has successfully closed the loan at any bank and can provide documents confirming this fact.
The application is written in free form. Attached to it copies and originals of the passport, TIN, income level certificates and other necessary documents.
Using a card with a credit limit
Each bank independently determines the conditions for using and servicing the card. When drawing up a loan agreement, it is important to familiarize yourself with all its provisions, including the components of the monthly payment. Banks usually use these types of commissions that cover:
- Card service. Paid annually by debiting the required amount from the card account. The higher the class of plastic, the higher the price of its maintenance - from 300 rubles to several thousand rubles per year. Along with the annual service, a monthly fee is practiced - 1.5-3% of the amount used.
- Cash withdrawal. Charged for each transaction. The amount of the commission depends on the policy of the financial institution. As a rule, in third-party banks the cashing out fee is higher than in the plastic issuing bank. The commission can be in percentage terms of the withdrawal amount or have a fixed amount.
- Use of cash. In addition to the commission for withdrawing funds, the borrower must pay a fee for their use. The rate is determined as an annual percentage calculated for the actual number of days of use.
- Penalties. If the client, for any reason, did not make the payment, he will be forced to pay a forfeit or a penalty, depending on the rules of the bank. The penalty can be fixed, for example, 500, 1000, 1500 rubles for each case of delay on the settlement date or as a percentage of the amount of current debt - from 10 to 25%. Penalty is calculated daily for each day of delay at 0.1-0.5% of the amount owed.
To control expense transactions, as well as the state of the balance, it is necessary to monitor the data of the credit card statement. The document contains all transactions performed by the borrower during the reporting period. You can get it at the department where the contract was drawn up, by mail or in the internet account of the plastic user. In addition to the control function, a card account statement can become a documentary confirmation of the client's solvency if he wants to take out a loan from another financial institution.
Closing the credit limit
Limitations on the limit are not the end of the banking service agreement, when it is necessary to urgently repay the debt and return the card to the bank. There are several types of credit limit problems:
- Temporary restriction of access to funds. For example, if a monthly payment is not made on time, the bank may block card transactions until the money is credited to the account.
- Limiting the amount of money transactions. As a rule, banks set maximum limits for withdrawing money. This is due to the high risk of these transactions. There are usually no restrictions on payment for purchases, works or services. So, if a client has reached the daily maximum for cash withdrawals, his credit limit is closed until the next day.
- Introduction of restrictions in times of crisis.
You can avoid reducing or closing the credit limit if you use a plastic card in accordance with the rules of the agreement, as well as timely repay the debt by making a minimum payment.
A credit card is issued to a person not for lifetime use, but for a certain period, which is set by the bank independently and can range from several months to 5 years.
The most common card validity period is 1-3 years. For example, Bank of Moscow, Bank Svyaznoy and Bank Vozrozhdenie offer credit cards for a period of 2 years, Sberbank and Raifazenbank- 3 years, VTB 24- from 1 to 3 years. Standing out against the background of other banks Russian standard which issues cards for 5 years.
After this time, the old card is withdrawn and a new one is issued for the next period. Periodic replacement does not occur at the whim of the bank - it is necessary because of the physical deterioration of the plastic, as well as because of the possible demagnetization of the magnetic strip.
The expiration date (usually in MM / YY format, sometimes DD / MM / YY) is indicated on the front of the card. For example, 12/12 means that the credit card is valid until 23-59 o'clock on December 31, 2012. After this date, operations using the card are prohibited, and even impossible.
Credit card expiration does not mean that the account is closed and you will have to open a new one. The card is just a tool (key) that allows you to manage borrowed funds, so the new card will have the same credit account as the previous one. Only the period of its validity changes, and in some banks - and the PIN-code.
New card issuance procedure
The conditions for re-issuing the card at the end of its validity period are determined by the bank and must be negotiated in the agreement. In most cases (but there are exceptions!), With the planned issue of a new card, a written application to the credit institution is not required: a month before the expiration of the term, the bank will automatically prepare a new credit card if the client has proven himself to be conscientious.
Usually, a financial institution reserves the right to refuse to reissue a card if:
- there are no funds on the card account;
- the cardholder allowed delays in the repayment of obligatory payments;
- there is an outstanding debt;
- the client did not use the card.
Some banks charge a commission for issuing a card for a new term (in Raiffeisenbank - 300 rubles). Most others, including Privatbank, TCS Bank, Svyaznoy Bank, B&N Bank , will replace the card with a new one for free.
Getting a reissued credit card
The method of delivery of the new card to the holder is also stipulated by the agreement. This could be:
- receiving a card at a bank branch;
- delivery by mail to the address indicated when concluding an agreement for opening and maintaining a card account;
- delivery by courier or bank employee.
When receiving a card at a bank branch, it is necessary to pick it up within a specified period of time - usually no later than a month (at least three) after the expiration of the old credit card. Cards unclaimed during this period are usually destroyed. If the client later expresses a desire to use the account, he will have to contact the bank and independently pay for the production of the card.
If you do not plan to use a credit card, it is better to notify the credit institution in writing 1.5-2 months before its expiration date. The bank will not produce a new card, and you will not have to pay for services that you do not need.
Remember that cards that have expired must be returned to the bank or destroyed.
