All this means that it is more profitable to use a credit card than just keep it in your wallet (or in digital form). In addition to free service, active use of the card allows you to receive cashback up to 15% in points, convert them into rubles and return the grace period faster.
How to get a credit card with a low interest rate
Correct use of a credit card means that you do not pay anything to the bank at all, since you do not go beyond the grace period. Therefore, credit card rates are a criterion that is almost not paid attention to. Much more important is the grace period and the presence of additional bonuses. Such bonuses include:
free service;
discounts and cashback;
cash withdrawal within the grace period;
Instant issuance of a credit card in digital form.
But no one can guarantee that they will always pay off the singapore mobile database debt on time. If you still have to go beyond the grace period, you want the most favorable conditions.
Interest rates on credit cards are set individually, and depend on bank tariffs and borrower factors. And if you can't influence the tariffs, then the borrower factors are within your influence. And the main ones are the level of debt burden and credit history (CH).
Rates on credit cards and cash loans are largely determined by the risks the bank takes on. If they are high, they are compensated by high interest rates.
One of the biggest risks for a bank is the high debt load of a potential borrower. The more loans he has, the higher the probability that he will stop paying at the slightest financial difficulties. Therefore, if you have a lot of loans and credit cards, you should not count on a low interest rate on a new card.
In addition, if you have a high debt load, there is a high probability that your application will be rejected. The fact is that, by law, a bank cannot issue a loan to a client who spends more than 50% of his income on all payments.
If you want to get a positive decision and favorable terms on a credit card, you need to reduce your debt load before applying. There are two ways to do this:
gradually close loans early, starting with small ones;
arrange refinancing - combine several loans into one with a reduction in payment.
If you have credit cards for which the grace period has already expired, it is very profitable to refinance them, as this will significantly reduce overpayments.
The main feature of refinancing is that it is extremely rare to get it in the same bank where you took out a loan or credit card. Therefore, you often have to look for a new bank.