The purpose of a credit card is obvious from its very name – it is the usage of credit funds. Yes, this is a bank loan, but not at all the same as cash. The difference between them is significant and in different circumstances of life can be decisive. Let's figure it out?!

Convenient loan 

Cashless payments

A credit card is a payment card that a bank provides to a customer to pay for the necessary goods and services purchased on credit. Unlike a cash loan, funds are not provided in the form of "live" cash but are credited to a plastic card. It is more expedient to carry out non-cash payments by credit card. A credit card is convenient for daily expenses and urgent purchases. The best solution would be a cash loan only if you need a large amount of cash.

Everything seems to be clear. But won't frequent usage of a plastic wallet lead to financial disaster? After all, we have heard such stories many times ... Let's consider everything in detail.

A credit card is a more convenient loan product.

• Drawing up a card requires much less time than applying for a loan;
• It is also easier to use it – funds are available to you at any time during the entire period of validity of the plastic and you can spend them at your discretion: to pay at your favorite coffee shop, pay for purchases on the Internet, or in a store, buy tickets for transport;
• In many cases, a non-cash payment by a credit card will be even more profitable than paying by any other means. .

Журнал «Народний банкір» №15/2021

Usually, banks allow using credit funds on the card without interest only for payments on the Internet and retail networks. But what about withdrawing cash when needed?

Cash withdrawal

In this case, it is worth analyzing everything. Without an urgent need to withdraw funds is impractical: in this case, banks usually take two types of commission – a one-time fee of 4-5% of the amount (commission for withdrawing credit funds) and interest for using credit funds. But there are pleasant exceptions.

Yes, PUMB does not charge a commission for the withdrawal of credit funds. And this year, using PUMB's credit support has become even more attractive: holders of VSEMOZHU cards do not need to pay interest for using credit funds* provided if the debt is repaid by the 30th day of the next month from the date of cash withdrawal. This is the right time to fulfill your little dreams!

By the winter holidays, PUMB gives its customers the opportunity to withdraw cash from a VSEMOZHU credit card without commission and not pay interest during a grace period that will last up to 62 days. For example, you withdraw cash in December, then, in order not to pay commission and interest for using funds, the loan should be repaid by January 30.

And during the grace period, you can transfer credit funds using PUMB Online Internet-banking to cards of other banks without a commission.

For a VSEMOZHU credit card, the maximum loan amount is 200 thousand UAH, the real annual interest rate is 47.88%, the maximum loan term is 12 months, and automatic prolongation is possible for the same period.

*The new conditions are valid from 26.10 2020 to 28.02.2021. The bank will notify customers separately about the extension of the terms or their change. The detailed information is available by phone 0 800 300 502 or on pumb.ua

Loan without overpayments? Easy!

It all depends only on your financial discipline. If you repay the borrowed money to the card on time, then this plastic will definitely become a stick for you, with which it is so easy to fulfill the desires of both your own and your family. It is within the credit limit (the amount that the bank is willing to provide to the owner of the credit card), of course. By using a credit card, you only return the funds that you actually spent. If the borrowed funds were not used, then you will not have to pay the bank.

Therefore, a credit card is a loan without overpayments. However, there is an important point. Each credit card has a so-called grace period. It usually lasts 30 to 90 days. If the debt is repaid within this period, interest for the usage of credit funds is not charged.  By rationally planning expenses and repaying debts on time, credit funds can be used indefinitely.

So that, due to your own imprudence, you do not fall into a debt trap, it is worth remembering:

1. Spending of credit funds from the card within a month should be no more than 50% of your salary.
2. Do not hesitate to use the loan funds next month. The borrowed funds must be returned to the card before the appointed time – in this case, the bank will not require any commissions or overpayments. Otherwise, you will have to pay the bank the minimum mandatory payment, which will contain, among other things, the interest accrued for using the loan.
3. Be careful, if you do not repay the borrowed funds during the grace period, the interest will be calculated from the day you have paid for the service or purchase by the credit card, and not from the date of the end of the grace period

Make money on a credit card? Interesting!

Making a profit by spending with a credit card is a very real story. For example, a monthly salary can be put on a demand deposit, and services and goods can be paid with funds from a credit card at this time. At the end of the month, interest will be accrued on the deposit amount. We withdraw the amount from the deposit, repay the spent credit funds to the bank during the grace period and have income in the form of interest accrued on the deposit.

Use your credit funds wisely!

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