Is it worth it to issue a credit card and what is needed for this?

Is it worth it to issue a credit card and what is needed for this?

Very often you don’t want to postpone the purchase of a new phone or repair in the living room on the back burner. And if the salary does not allow you to quickly save the necessary amount, you should issue a credit card on the site

Key Benefits

A credit card is a convenient payment tool. Its main feature is that it allows you to use the bank's money against future income. But at the same time the client must return not only the loan amount, but also pay the commission. Credit limit can be restored several times. As soon as the previous loan was closed, you can make a new one.

A weighty plus credit card is the availability of a grace period, it is also called “green”. It is 15 days, one or two months from the date of the loan, during which the borrower can use the money for free. And only after it expires, interest begins to accrue according to the contract.

The bank does not control the client in terms of where he spends borrowed funds. But for using a credit card when buying goods and services, making tickets for a train or a plane, during travels, he gives pleasant bonuses within the credit program. This can be cashback (refund of a certain amount of funds from the purchase), discounts in stores, valuable gifts from bank partners.

Requirements for borrowers

A bank is not a charitable organization. In order to protect himself from financial losses, he puts forward quite stringent requirements for potential borrowers. The main requirement is solvency. To prove it, a potential borrower must provide an income statement, employment record, account statement. If the loan amount is large, then the client must additionally provide collateral or find guarantors.

Another important requirement is a good credit history. If a potential borrower had overdue loans or has existing loans in other organizations, he will most likely be denied.

It is important that the age of the client was at least 18 years old, but not older than 65 years. Elderly retired banks are extremely reluctant to issue loans, as this social category has a high mortality rate. But young people do not always manage to get a loan, especially if they are students who are not officially employed, and have only a part-time job.

Thus, not every citizen of Ukraine will be able to meet the banking requirements (for more details on the credit conditions, you can read here However, this is a necessary measure on the part of banking organizations, since in the past few years the case of non-payment of loans taken has become more frequent.

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