Credit Card Comparison
A credit card is the easiest way to dispose of more than your monthly income completely freely. You can spend up to a certain amount for free, without having to go to your bank to fill out a loan application. However, along with the many benefits, remember that your credit card is not a gift. Although it is truly interest-free within certain limits, if it is not repaid on time, it is priced high enough.
In the common language, a debit card, also called a debit card, is often called a credit card, but the two are completely different. A debit card gives you access to your bank account, so you can only spend as much money as you can. By contrast, a credit card gives you access to a credit line provided by your bank and you can spend as much as that credit line.
Get to Know Your Credit Card!
With a credit card, the bank provides the customer with a short-term credit through purchases made against the credit line. The loan must be repaid monthly. As a rule, five percent of the amount used must always be repaid – typically at least five thousand forints – and the bank charges interest on the remaining debt. This interest rate is high enough so that the customer will benefit if he repays the entire loan taken at that time on the monthly reporting date, in which case the loan is interest free. If this fails, you will typically be charged a repayment of 35-40% THM.
Annual credit card charges
Cards have an annual fee – which can be as low as $ 0 through discounts and promotions – plus a few hundred dollars a month for closing and account management. The overdraft is subject to a charge, and in addition to interest, you will be charged a late fee if you default. Purchasing is always free, but you pay more for withdrawing cash than using a credit card. Changing your PIN code is also subject to fees in many cases.
Monthly and daily purchase limit
In many cases, your credit card comes with a monthly purchase limit of a few hundred thousand forints or as much as your credit line allows. Cash withdrawal is also subject to a limit and is usually 50-60 percent of the total credit line. It is also important to pay attention to the number of daily transactions, as this is also done – usually the bank allows twenty payments and withdrawals. The default setting typically allows fewer transactions, but this can be raised. This is especially important if you use the card a lot for a small touch payment – coffee, cookies, water, and you already have a limit, which can be a surprise especially during your vacation.
Repayment of the loan
The easiest way to get a refill is through a net bank, or it can be deposited in a yellow check or bank branch – but these solutions are subject to a fee, as opposed to a transfer. Be sure to pay attention to the deadlines for refilling. Typically, after the end of the month, at least the minimum fee should be paid by the 15th of each month. This is five percent of your outstanding debt at the end of the month, usually at least $ 200. If that is the only amount that is repaid, the bank will charge the full amount of the interest.
Credit cards are generally advertised with a 45-day interest-free period, which means that if you spend the entire month on a due date, from the beginning of the month until the 15th of the following month, you will not be charged. It is very important to adhere to this rule because all other offers and discounts are only discounted in the light that our spending was free. It is important to note that cash withdrawals are not subject to an interest-free period, and the bank will immediately charge the interest.
Banks usually give a 1-2 percent refund on the value of their purchases. This means that for every hundred forints the bank credits 1-2 forints, or settles one or two points, which we get back according to certain rules – we can buy it more precisely. Banks tend to mix up discounts – some purchases can give you 3% up to 5% refunds – so it is hard to decide whether or not to take advantage of your first run. However, it is definitely worth looking at how many points you can earn each month and when the bank “returns” the points: in a day or two, at the end of the following month or at the end of the year. There are maximum payments for more than one credit card, so check it out – even with a credit card calculator – before you apply.
Banks also provide additional services to credit cards, which are extremely diverse. Typically, this includes personal and travel insurance, merchandise loans, bonuses at particular stores, but this includes non-cash services. These are mainly related to travel, so you can go to airport lounges with specific cards or use the airport security check.
Credit card comparison factors
Comparing credit cards thoroughly is a very complex task, but there are a few aspects that can be reviewed as laymen.
Such is the card fee. Some cards can swim for you – if you diligently use your credit line, you can reset your card fee – or your bank may charge tens of thousands of dollars a year. High card fees are usually accompanied by extra services, but if we cannot take advantage of them, we will pay you an extra amount.
Refund rules are also important. Most banks will give you a one percent refund, plus a 2-3 percent refund for specialty stores or purchases. This sounds very good, but it is worth considering carefully whether we can really use it. For example, there is no need for an accelerated airport check, if you have never used it during your travels so far, you really do not need it. Or if we are in need, we will buy it once at the airport for five euros.
Direct debit is included in the preferential rate at several banks, which means a refund. This means that we can post some extra money on invoices that you would otherwise pay. Not all banks are as gallant, so you should definitely check it out.
Calculate the machine for us!
Wouldn’t it be easier for a machine to compare all this for us? This is also possible. The credit card calculator can compare cards from multiple banks, just by setting the right parameters. Before applying for a credit card, it’s a good idea to scroll through the options.
With adjustable sliders we can model which card is best for us in different cases. First you should set your monthly spend and credit line. The credit line should be much higher than our monthly income – at most, we won’t use up the entire credit line – but set our monthly spend conservatively.
It should be assumed that we are planning an average month, so it is not worth including a complete white goods replacement. When setting up your spend, keep in mind that these are just card payments, so you still have some cash left in your wallet. If your card is barely used on a monthly basis, it is unlikely that it will change suddenly, so it is worth managing the sliders with sufficient self-knowledge.
Take advantage of discounts!
When accounting for discounts, let’s try to set up a spend that we can probably take advantage of. In vain, the bank gives you an extra refund for hotel room rates if you do not travel anywhere. Knowing our own options, we can set up gasoline or direct debit (utilities), after all, these two items represent a significant expense in your monthly budget.
There are several cards from one bank in the results, which is possible because the bank provides the same Visa and Mastercard cards, so we can decide which one we want. If we look at each offer in detail, there is also the opportunity, and even here we can fine-tune the structure of our spending, even on the basis of which offers better pay for utility or refueling.
The calculator works with up-to-date data provided by banks. It also takes into account discounts, but you should read the detailed information before applying for a credit card on any offer. It is located on the side of the bank and the calculator will always lead you there.