Credit cards are very popular all over the world. Russia is no exception. Banks everywhere impose credit cards on their customers, offering even to deliver them to any convenient place and time-everything, if only you took a credit card.
Why? Quite simply, banks earn on credit cards, as a rule, more than on ordinary consumer loans. However, having sufficient knowledge in the financial sphere, knowing only one strategy, you will earn on a credit card, not a Bank.
Credit card pitfalls
Banks are very fond of credit cards, as they get a good profit from them. What does the Bank earn?
- Credit card service fee. Issuing cards to the Bank is usually inexpensive (about 50-100 rubles.). At the same time, customers pay a Commission of 500 rubles per year for the card service (depending on the type of credit card and the Bank that issued it). Thus, the Bank makes a profit, even if you do not use the card, but just keep it.
- Fee for cash withdrawal at ATM. In Internet banking you can see that there is a certain amount on your card, being an inexperienced user, you can make a mistake by withdrawing money from the card. The Bank may charge a Commission for this transaction either in a fixed amount (for example, 200 rubles), or as a percentage of the withdrawn amount, or a combined Commission (a fixed amount plus a percentage of the withdrawn amount).
- Fees for the use of borrowed funds, that is, interest on the loan, as well as penalties for late payments. It is this point that brings the Bank the maximum profit, sometimes exceeding the profit on ordinary consumer loans.
- Other, for example, SMS notifications-usually a small amount (for example, 50 rubles per month). However, these costs should be taken into account, as in annual terms, 50 rubles turns into 600 rubles.
How to save on a credit card
Why do I need a credit card? Usually the answers are divided into:
- Just in case something happens.
- Lack of funds.
How to choose the optimal credit card so that you can also earn on it?
- Analyze the cost of maintenance. To select the minimum.
- Disable SMS notifications if they are paid. Since these" small " monthly expenses in annual terms result in a tidy sum. Currently, all banks provide the ability to track the movement of funds through personal accounts and applications.
- Analyze the duration of the free period of use of borrowed funds.
- Presence / absence of cash-back. Naturally, it is better to give preference to a card with a cash back in the form of real money, rather than bonuses.
Choose a credit card should be a combination of the proposed conditions, as banks are usually cunning, offering, for example, free annual card service, but increasing the percentage for the use of borrowed funds. Other banks have a high cash back, but other conditions on the card are worse than competitors. Others have a long grace period, but a high fee for annual maintenance. Therefore, it is important to analyze the conditions and decide what is right for you.
Grace period: how to use it
Grace period (grace period) is the period in which no interest is accrued for the use of borrowed funds. As a rule, banks offer a grace period of 55 days.
Important! Each Bank has a settlement date, that is, the date from which the grace period begins. For example, if your Bank's settlement date is the 20th of each month, then from the 20th you have 55 days to use the borrowed funds. If you purchased something on the 25th of the month, your grace period was reduced by 5 days, that is, you have 50 days left to not pay interest for the use of borrowed money. This is very important, many inexperienced credit card users make mistakes related to settlement dates, which leads to the payment of interest.
How to earn on credit cards
So we came to the main topic of this article. Do not think that everything described above does not concern this topic. On the contrary, all the information will work for the good. So, the steps to help earn:
- We select the optimal credit card - with minimal service fees, remove other costs (for example, SMS-informing, if it is paid), check the availability of a grace period (the duration of the grace period should be at least 55 days). When choosing a map, we take into account all the conditions.
- Open a Bank Deposit or debit card. It is important that the Bank in which you open a Deposit or card, was reliable.
- The received salary or other income is fully transferred to this Deposit or debit card. You can keep some cash if you need it.
- During the next month, we use the money from the credit card without removing them (this is important).
- With the next salary we extinguish the debt on the credit card, be sure to meet the grace period. If the money is still left, then put them back on Deposit or on a debit card.
Unfortunately, this scheme has become less interesting in recent years, as the Central Bank constantly reduces the key rate, which leads to a fall in yields on Bank deposits. But still, the scheme remains working.
In proof, let's give an example, for example, you put on Deposit 30 000 rubles at 5% per annum, on a credit card you also spend 30 000 rubles per year on the above scheme you will earn 1 500 rubles. This will at least cover the costs for using a credit card. If you spend 100 000 rubles on a credit card, then for a year the scheme will bring you 5 000 rubles. It is already better, but also not very much.
Profitability is low, a lot of headaches. Among other things, by issuing a credit card, you assume additional responsibility to the Bank. Plus, the credit card requires compliance with financial discipline, if you do not have it, it is better not to issue a credit card.
When is this scheme interesting
When you already use a credit card for your needs. For example, if you make credit card transactions that bring increased cash back. For example, a credit card with an increased cash back for flights, etc. Or, for example, if you travel often and book hotels or cars. In order not to freeze your funds for booking, you can use credit funds, they will still return there later.
In this case, the above scheme can be applied.
Specifically to open a credit card to thus earn, does not make sense. There are more interesting ways to earn.
The question immediately arises whether it is better to use credit money and transfer it to more profitable assets, for example, transfer to a brokerage account and invest in the stock market. This action does not fall under the grace period, that is, immediately after the transfer, you will begin to pay interest to the Bank for the use of borrowed funds as if you had withdrawn money from an ATM. Therefore, this scheme will not be profitable.
If you use this scheme or know any other financial secrets that help you use a credit card more efficiently, please write in the comments. This information will be valuable for readers.
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