Features of applying for credit cards with a grace period

What is more profitable: cash or credit card purchases

При оформлении банковского продукта обращаем внимание на льготный период по кредитной карте для снятия наличных средств. В большинстве случаев, снятие наличных средств предусматривает приостановление действия беспроцентного периода. Также, льготный период будет приостановлен если вы осуществляете переводы с карты на карту, оплачиваете неспецифические услуги, например, казино, лотерейные билеты, оплачиваете кредит для другого банка. Вместе с этим, могут быть и исключения по кредитной карте с льготным периодом на снятие наличных и совершении операций. Так, Т-Банк предлагает банковский продукт со льготным периодом 60 дней, но если вы гасите кредит в другом банке, то Т-Банк увеличивает грейс – период с 60 до 120 дней. Таким образом, этот момент нужно уточнять индивидуально по каждому банковскому продукту.

There is another exception: Alfa-Bank with its "100 Days Without Interest" card. Here, you can withdraw up to 50,000 RUB in cash monthly without any commissions, while maintaining the 100-day grace period.

Banks, in turn, charge commissions for cash withdrawals, most commonly ranging from 2.9% to 6.9%, and an additional fixed fee may be charged alongside the commission, such as 3.9% plus 390 RUB. It is unprofitable for credit organizations to issue a credit card with a grace period of 30 days or more because the main purpose of such a banking product is to track the borrower's financial transactions and develop individual terms for future lending.

How to correctly calculate the grace period

The hardest part for the borrower is calculating the grace period correctly. As a rule, all banks offering credit cards with a grace period provide one of the following lending options:

1. The bank starts counting the grace period on the card from the first day of the transaction. For example, if you have a 100-day card and made your first purchase on September 10, the last day of the interest-free period will be December 20. Starting from December 21, if you do not pay off the loan, the interest rate stipulated by the agreement comes into effect.
2. A grace period starting from a fixed date. This parameter is slightly harder to calculate, but the essence is straightforward. For example, you were issued a card on September 10 with a 60-day grace period. The first fixed day is considered September 1, and the last is October 30. This means that even if you got the card on September 29, the last day of the grace period will still be October 30 (for a 60-day period).

Naturally, the latter scheme is the one most frequently used by banks. Short grace periods of up to 60 days are provided for this scheme. To avoid confusion with calculations, banks attach a calculation table to the agreement. An ideal option is to issue the credit card in the first days of the month. Note that the fixed date is set differently by each bank: some start counting from the 1st of the month, while others use the 25th or another date.

Although the grace period does not involve interest payments, practically all banks require the mandatory payment of a monthly minimum installment. As a rule, this parameter ranges from 5% to 10% of the existing debt amount.

Standard transaction and calculation scheme for the grace period

To correctly calculate the grace period on a credit card, it is best to enable SMS notifications. This way, you will always be aware of when and how many payments you need to make during the grace period. The standard scheme for monitoring payment dates during the grace period is as follows:

• Make any paid transaction using the card where grace period conditions apply (remember that for cash transactions and non-standard payments like casinos, the grace period does not apply unless specified by marketing program terms).
• Remember the transaction date. Also check the agreement terms here, in case there is a fixed date or if the date must be calculated strictly from the moment the transaction is made.
• Without waiting for the last day of the grace period, make a payment. Check the required minimum payment amount. In the final days, pay off the remaining balance of the debt.
• Before the grace period ends, you have fully fulfilled your obligations to the bank, and no interest is charged.
• If provided for by the bank agreement, you can reuse the funds under a renewable grace period.

Please note that credit cards with a grace period and installment cards have distinct characteristics due to the specifics of the banking product.

Which banks offer attractive credit cards with a grace period

Virtually all credit institutions in Russia offer at least 1–2 banking products with a grace lending period. Holders of such cards can include retirees, students, the unemployed, and even those with a poor credit history. Each bank reviews the application and then determines the credit limit available to the borrower. The initial credit limit will be modest, for example 30,000 RUB, against a maximum allowable limit of 350,000 RUB. Subsequently, if you successfully meet the bank's requirements, your credit line will be gradually increased.

The top ranking of the best credit cards with a grace period features the following banking products:

1. Alfa-Bank. The credit institution provides the opportunity to order Standard, Gold, or Platinum cards. The grace period is the most attractive—up to 100 calendar days. The credit line ranges from 300,000 to 1 million RUB. You can get the card if you are already 18 years old. This is one of the few banking products that allows cash withdrawals of up to 50,000 RUB without violating the terms for preferential lending. Like all banking products with a grace period, you must make a monthly payment of 5%, but not less than 320 RUB.
2. Pochta Bank. A unique offering for borrowers is the "Green Card" credit card with a grace period. The approved credit line is up to 500,000 RUB, and the grace period is 60 calendar days. The card is ideal for non-cash payments in many stores. If you fail to return the money by the end of the grace period, the standard interest rate of 19.9% per annum comes into effect. Withdrawing cash from the "Green Card" is extremely unprofitable: you will pay a 3.9% withdrawal fee, and an annual interest rate of 29.9% will additionally apply.
3. Vostochny Bank has an extensive lineup of credit cards with a 56-day grace period. A unique exception is the "Prosto" card, where the grace period is 200 days, but only once. Afterwards, the renewable grace lending period is limited to 50 days. According to available information, the bank offers up to 40 different credit products with a grace lending period.
4. Т-Банк предлагает кредитки с льготным периодом до 55 дней. Однако, есть уникальное предложение, если вы оплачиваете кредит другого банка, то грейс-период составляет до 120 дней. Таких предложений вы не найдете у других банков. Чаще все сторонние банки при погашении кредита сторонней организации приостанавливают срок действия грейс-периода, у Т-Банка- наоборот увеличивается срок льготного периода в 2 раза.
5. The Mastercard from Sberbank of Russia has a grace period of up to 50 days, while the maximum credit line is limited to 600,000 RUB.
6. Asia-Pacific Bank (ATB) offers the "90 Days" credit card, where the grace period is 92 days for in-store purchases, along with favorable terms for cash withdrawals.
7. The "Multicard" from VTB has a credit limit of up to 1 million RUB, but the grace period is limited to 50 days.
8. Gazprombank's "Smart Card". You can get a credit limit of up to 300,000 RUB, a grace period of 55 days, and a standard interest rate of 19.9%.

Please note that installment cards also have a grace period, but the calculation principle depends on the specific bank partner chosen. The minimum interest-free period is 1 month, and the maximum fixed period is 24 months (Sovcombank's "Halva" card). The card is valid for up to 10 years, a late payment fee of only 0.1% is charged, and an interest rate of 10% is established after the grace period ends.

Similar offers can be seen with the "Sovest" card from QIWI Bank, where you can get an approved credit line ranging from 5,000 to 300,000 RUB. The validity period of the installment card with a grace period is 5 calendar days [sic/calendar years].