To get a credit card or submit an application

All the ins and outs of living with a credit card

The nice-sounding phrase "credit card" can surprise no one nowadays. Almost everyone has such a plastic card in their wallet with a certain amount provided by the bank. But what is a credit card really? Is it just another trick for bankers to profit from clients?

Let's find out what "credit cards" really are

Every bank customer has at least once received a call from a pleasant-sounding operator reporting that a personal credit card (perhaps even a gold one) is ready for them, and they just need to pick it up at a branch, and then spend the money however they like. And indeed, many immediately rush to get it without understanding what the bank has offered them.

A bank credit card is a type of payment card that allows a client to pay for services and goods using funds from the respective bank.

When determining the credit limit, the bank takes into account several important facts about the potential borrower, namely their age, credit history, and income level. If the client actively uses the issued card (pays for purchases, repays the debt on time), the credit limit can be increased at the initiative of either the bank or the client.

It is important to understand that a credit card and a consumer loan are not the same thing. No bank will issue a loan simply so a client can stop by the grocery store after work to buy ingredients for dinner. That is precisely what a credit card is for.

A loan on such a card typically lasts no longer than two years and involves monthly repayments of the principal at an interest rate (not exceeding ten percent) and fees. Failing to comply with this agreement leads to unpleasant consequences: overdue payments (and an increased repayment amount) and a damaged credit history.

Many people look for catch and distrust this bank service, believing the bank will fleece them completely. This is a misconception, though not entirely groundless. The bank also wants to make a profit from this type of service, so it sets an interest rate for each credit amount provided, putting its own money into circulation. For the same reason, the amount due increases if there is a debt or a missed monthly payment. There is no need to be frightened by this. Simply figure out how you will repay the amount with interest before applying for a credit card.

How to apply for a credit card

Applying for a credit card is very simple. There are even two ways to do it (choose the one that suits you best): directly at the bank or online from the comfort of your home or office.

If you choose the first option, you fill out an application at a branch of the bank where you are a customer with the help of an agent, after listening at top speed to a prepared speech about all the features of the bank's credit card. Afterward, you go home to await the decision on your application and the issuance of this magical card.

If you value your time, choose the second option: online. On your bank's website, go to the banking products (cards) section and click to apply for the desired type of card. After filling out a simple application form, you just have to wait for the bank's decision. All information in the application must match your documents, as the bank will use it (and most importantly, its validity) to decide whether to approve or reject your credit card. Once the bank receives your online application, an agent will contact you to confirm the details.

Before applying for such a card, it is important for the client to ensure they meet all the bank's requirements (legal age, sufficient work experience, income level sufficient to cover monthly interest payments on the provided amount, positive credit history, registration) and can provide the necessary documents. To do this, consult with a bank branch in advance or carefully review all information on the bank's official website.

Credit card issuance timeframe after application approval

The time it takes to prepare and issue a credit card depends on two factors. First, the terms of issuance; second, the bank where it is issued. On average, a bank takes five to seven business days for this process. This time may increase if you apply for a card with a custom design or additional features. If you need the card on the day of application, you should get an instant-issue card (which takes just a few hours to pick up in person).

Where to pick up your ready card

There are also several ways to receive your finished plastic card with your name engraved on it and a specific credit limit. Moreover, this does not depend on how you submitted your application, because the bank always wants to please its customer and strengthen a trusting relationship.

Here are two real ways for a credit card to reach your wallet:

• pick it up yourself at a bank branch,
• order home or office delivery.

Which one to choose is a matter of taste. The first method requires spending personal time traveling to the branch and waiting in line. The second is convenient because a courier will bring the envelope with the card and all necessary documents to a location and time of your choice. Thus, you stay in a good mood without interrupting your daily routine.