What is a credit card billing period?

When we actively use a bank card, a lot of various operations (transactions) go through its account - these are payments in stores, online payments, automatic debits, replenishments through an external transfer or terminal. Moreover, during all these calculations we can spend both our own money and the bank’s money, or even all together in different proportions. In order not to get confused in all these cash flows, one day it was decided to sum up the official summary of all relationships between the bank and the credit card holder once a month.

A billing period is a period of time between two calendar dates during which all credit card transactions are recorded: expenses and top-ups. It is used to calculate and pay interest, as well as determine minimum payments. Typically this period is one month or 30 days.

Correct use of the billing period is the key to successful management of your finances, the key to financial well-being and bank trust.

What is a credit card grace period?

Grace period is a certain period of use of a credit card, which allows you to use funds for free or at a reduced interest rate. The condition is mandatory timely repayment of the debt before the end of the benefit. There are various types of restrictions on the use of the service.

For the most part, it applies exclusively to non-cash transactions with credit cards. Specific terms vary by bank. The length of the grace period averages 50–60 days, but again may vary depending on the specific offer.

Reporting period in the service contract

The date of execution of this Agreement for payment for the Services provided by the Contractor to the Customer is the date the bank credits the funds transferred by the Customer to the Contractor's current account. My option is 4.8.

The customer transfers payments before (in words) the day of the month following the billing month (or from the date of invoice). The date of execution of this Agreement for payment for the Services provided by the Contractor to the Customer is the date the bank credits the funds transferred by the Customer to the Contractor's current account.

4.9. Invoices are issued by the Contractor in accordance with the current legislation of the Russian Federation. 4.9. I think it’s necessary to remove it, this is already clear. How to prove that the billing period is April and not May. And the reporting period has nothing to do with it at all.

Why do banks need such conditions?

The bank somehow makes money from credit card holders, even if the latter use the interest-free period and repay all obligations on time. Firstly, well-known payment systems deduct 1-2% of all expenses in their favor, and as an incentive reward for the fact that the client paid with plastic and not in cash, part of the money is given to the bank.

Also, regardless of the benefit, the amount for annual card maintenance is withdrawn. But the user will not be at a loss, since the use of cashback and various bonuses for the year allows him to cover the amount of the annual service.

The grace period itself is something like an incentive for those clients who conscientiously pay their debt obligations within a certain period. If the client does not meet this requirement, then interest is charged on the loan.

Billing month for the lease agreement

5 tbsp. 10 of Law N 212-FZ, if an organization created after the beginning of a calendar year is liquidated or reorganized before the end of this calendar year, the calculation period for it is the period from the date of creation to the day the liquidation or reorganization is completed.

Article 16 of the Federal Law of 08.08.2001 N 129-FZ “On State Registration of Legal Entities and Individual Entrepreneurs” stipulates that the reorganization of a legal entity in the form of transformation is considered completed from the moment of state registration of the newly emerged legal entity. From this moment, the transformed legal entity is considered to have ceased its activities.

The joint stock company was created through reorganization in the form of transformation of a unitary enterprise on January 10, 2010.

Therefore, the first reporting period for insurance premiums is the period from January 10 to March 31, 2010.

The first billing period is the period from January 10 to December 31, 2010.

As stated in Part 6 of Art. 10 of Law N 212-FZ, the rules provided for in parts 3 - 5 of this article do not apply to organizations from which one or more organizations are separated or joined.

In fact, the billing and reporting periods replaced the tax and reporting periods, and the legislator largely applied similar methods to determine them.

Are there any benefits to credit cards with a grace period?

Owning credit cards with a grace period has both its advantages and some disadvantages. This must be taken into account when deciding to apply for a credit card. Advantages of offers with a grace period:

• there is an opportunity to rely on borrowed money and earn money on a credit card;
• cashbacks and bonuses are higher than bonuses for using a simple debit card;
• you can improve your credit history;
• you do not need to pay personal income tax for using a credit card.

The disadvantages of using include:

• if the money is not required to be returned immediately, there is a risk of spending more than you have;
• If you do not return the money during the benefit period, you will have to pay fairly high interest.

A credit card of this type can be a very profitable purchase, but only if you use it correctly and do not give in to emotions about purchasing something unnecessary.

What operations fall under the grace period?

Each creditor decides for itself which transactions fall within the scope of the preferential period. Also, each credit institution has several types of credit cards with different conditions. When receiving cash from a credit card, the grace period most often does not apply. If the cardholder withdraws money from an ATM or even simply transfers it from card to card, interest will immediately begin to accrue at a higher rate, and there will be no grace period. Some banking companies have offers with credit cards, where the grace period also applies to cash transactions.

The most common benefits are:

• non-cash payments for services and purchases with non-cash payments;
• payment of an annual fee from a credit card.

And other payments and transfers that can be considered as payment, for example, transfers to electronic wallets, payment of traveler's checks, transactions in online games are no longer included in most programs.

Article 11. Determination of the date of payment and other remuneration

In accordance with Art. 11 of Law N 212-FZ, the date of payments and other remuneration is defined as:

1) the day of accrual of payments and other remunerations in favor of the employee (individual in whose favor payments and other remunerations are made) - for payments and other remunerations accrued by payers of insurance contributions specified in subparagraphs “a” and “b” of paragraph 1 of part 1 Article 5 of Law No. 212-FZ.

This refers to organizations and individual entrepreneurs.

Organizations are understood, in accordance with Article 2 of Law N 212-FZ, to be legal entities formed in accordance with the legislation of the Russian Federation (hereinafter referred to as Russian organizations), as well as foreign legal entities, companies and other corporate entities with civil legal capacity, created in accordance with legislation of foreign states, international organizations, branches and representative offices of these foreign persons and international organizations created on the territory of the Russian Federation; individual entrepreneurs are understood in accordance with this norm as individuals registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity, heads of peasant (farm) enterprises;

2) the day of making payments and other remuneration in favor of an individual - for payers of insurance premiums specified in subparagraph “c” of paragraph 1 of part 1 of Article 5 of Law N 212-FZ.

This refers to individuals who are not recognized as individual entrepreneurs.

"Moscow Tax Courier", N 5, 2000

Question: AKB requests clarification of the application of clause 1 of article 3 of the Law of the Russian Federation of December 7, 1991 N 1998-1 “On personal income tax.”

In particular, please clarify from what point the new refinancing rate is applied when calculating material benefits under deposit agreements, because according to the Instruction of the State Tax Service of Russia dated June 29, 1995 N 35, the new refinancing rate taken into account for the purposes of taxation of material benefits is applied starting from the billing month following the month of its change, while according to the Letter of the State Tax Service of Russia dated June 22, 1998 N SSH-6- 08/367 in a similar situation, the refinancing rate valid at the end of the billing month is applied.

Terms and conditions of use

The rules, as well as the conditions for using credit cards, may differ significantly. Therefore, before applying for a credit card, you must carefully study the proposed loan terms and consult with a bank specialist. It is better to choose the best option, collect several offers from different credit institutions and compare.

When choosing, it is important to pay attention to the following conditions:

• payment for annual maintenance (usually it is stable);
• additional paid services: SMS notification, online banking;
• commissions for certain transactions and payments;
• for how long and under what conditions the interest-free period of use is provided.

Before signing a loan agreement, you must carefully study the conditions, since even the same credit institution may differ and have different programs.

Concepts and differences between reporting and billing periods

I APPROVED THE FORM OF THE ACT: I APPROVED THE FORM OF THE ACT: from the Contractor: from the Customer: Full name Full name M. P. M. P. ACT of services rendered No. for the reporting period Date of preparation energy sales company ", hereinafter referred to as the "Contractor", represented by the acting on the basis of , on the one hand, and , hereinafter referred to as “Customer”, represented by , acting on the basis of , on the other hand, drew up this Act stating that the Contractor provided the Customer with the following services under the Contract for the provision of 20: No. Name of service Quantity Price per unit, rub.

Payment of the minimum payment

By the time the settlement date arrives, a certain minimum payment must be transferred to the card to pay off debt obligations so that the lender does not charge interest. Typically the amount is 5-8% of the total debt.

If for some reason the client does not pay the minimum in question, the bank may consider the terms of the benefit violated and will charge a fine, as well as interest on the debt. Only after paying all the debt, including interest, can you use the credit card again. In any case, minimum payments are required to be made; this is worth remembering so as not to receive penalties from the credit institution.

Types of grace periods

There are three types of grace periods:

• fixed from the moment of the first purchase;
• by billing period;
• for each operation.

The last option is used very rarely, since it is easy for the user to get confused, because each purchase has its own grace period. As soon as there is a delay, interest begins to increase.

Calculation based on the reporting period

This is the most used option. Most often, it is incomprehensible to ordinary users, so the largest banks provide online calculators on their official websites for clarification.

First of all, it is necessary to understand what the term in question means. This is a period of 30 days, after which the lender creates a statement of account. It is sent to the cardholder by email. After this period comes the second part - the payment deadline, when the client must return the money to the credit card. Usually it is 20–25 days. The result is a grace period of 50–55 days.

The complexity of this calculation is that each bank has its own indicators for billing periods. This may be the first day of each month, or the date is generally indicated in the contract for each case optionally.

Since the first purchase

When there is a clear grace period, this is the most comfortable offer. The credit institution establishes the exact number of calendar days that are considered a grace period. The countdown starts from the date of the first purchase. There is a minimum monthly payment that must be made in order for the grace period to continue. The new grace period will begin after the debts are paid for the previous interest-free period, again counting from the moment of the first purchase.

For each payment separately

This mechanism can be found rarely, and it applies to any credit card transaction. In this case, obligations must be paid in the same order as they arose.

Article 10. Settlement and reporting periods

According to Part 1 of Art. 10 of Law N 212-FZ, the calculation period for insurance premiums is a calendar year.

In accordance with Part 2 of Art. 10 of Law N 212-FZ reporting periods are the first quarter, half a year, nine months of a calendar year, and a calendar year.

Based on Part 3 of Art. 10 of Law N 212-FZ, if an organization was created after the beginning of the calendar year, the first billing period for it is the period from the date of creation to the end of this calendar year.

Provisions of Part 3 of Art. 10 of Law No. 212-FZ are in systematic connection with clause 2 of Art. 14 of the Federal Law of November 21, 1996 N 129-FZ “On Accounting” (hereinafter referred to as Law N 129-FZ), according to which the first reporting year for newly created organizations is considered to be the period from the date of their state registration to December 31 of the corresponding year, and for organizations created after October 1 - until December 31 of the following year.

In addition, paragraph 2 of Art. 14 of Law N 129-FZ also establishes that data on business transactions carried out before the state registration of organizations is included in their financial statements for the first reporting year.

Part 4 of Art. 10 of Law N 212-FZ establishes that if an organization was liquidated or reorganized before the end of the calendar year, the last billing period for it is the period from the beginning of this calendar year until the day the liquidation or reorganization was completed.

Features of calculating the grace period

The grace period is convenient and beneficial not only for banks, but also for clients, if used correctly. Therefore, even a simple credit card user should understand the features of calculating the grace period, depending on various nuances.

Grace period = calendar month +

This is a very common scheme. According to it, the grace period is equal to the days that remain until the end of the calendar month, as well as another 20–25 subsequent days. In such a situation, the minimum grace period is 20-25 days if the purchase was made in the last days of the month.

The bank indicates the amount of debt in figures on the monthly statement. If you do not repay it, you will have to pay interest, as well as penalties from the bank.

Grace period = billing period +

In this scheme, everything depends on when the bank sends the statement and names the billing period. This is no longer necessarily the end of the calendar month or the beginning. The payment period, as in the previous case, is 20–25 days, but not from the end of the calendar month, but from the end of the billing period, that is, from the date when the bank sent a statement with all transactions for that time.

Grace period = calendar month + next

In such a situation, the maximum grace period is 60 days. This means that money for purchases using the card must be returned by the end of the next month. If the card was issued in March, then the grace period is until April 30.

IMPORTANT!

Only purchases made in the first month count toward the grace period. For example, the card was purchased in May. The grace period applies to purchases made in May and is valid until June 30.

Grace period = date of first purchase on credit +

The grace period under this scheme is also divided into two parts: the billing period and the payment period. For example, if a card has a grace period of 60 days, then 40 of them are the billing period and 20 are the payment period. If a user purchased a refrigerator on May 5, then by July 5 he must repay the credit card debt. It does not matter when the card was issued. Everything starts counting from the date of the first purchase.

Fixed grace period

For each purchase, a fixed period is calculated separately. Its duration usually does not exceed a month. This method is most often used for inexpensive cards.

Example. The grace period for the card is 30 days:

• the user purchased the phone on March 5 – the grace period ends on April 5;
• On April 1, I made a purchase for 15 thousand rubles - they must be returned without interest until May 1.

IMPORTANT!

With a fixed period for each purchase, it is important for the user to remember the date when and what he bought, so as not to be late in payment.

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Your main task at this stage is to study, study and study again. You read product guides, attend lectures, and communicate with more “senior” friends. In general, you will learn a lot of new and interesting things.

And then one fine day, you decide to buy a jar of some cream or balm - for yourself. You should try it yourself to see if the cosmetics that are being praised so much are really good. And this, by the way, is a very important rule of network marketing: always use the products you distribute yourself.

You come to the warehouse, open the price list and find the product you like there. Then look at the price indicated in the “Warehouse price” column. Now please note that each product, in addition to the ruble cost, also has a so-called “points” price.

What are Distributor Points (points for purchases)

When you come to the warehouse and make a purchase, Distributor Points are entered into the computer using your registration number. They are subsequently used to calculate rewards.

To better understand what you are about to read, let's draw a table like this.

Table of parameters for your work in April.

We will write down your registration number and Qualification in the first and second columns. Now let's start filling out the four remaining columns.

What is a billing month?

Let's assume that in April you personally purchased products worth 50 points. The month for which your remuneration will be calculated is called the billing month. However, the billing month is not always equal to the calendar month. July-August and December-January are considered one billing month. Thus, in a calendar year there are not 12, but 10 billing months.

In the future, unless otherwise specified, by month we mean the billing month, and not the calendar month.

What is Personal Volume (PV)

The volume of product purchases (in points) made by you personally in the billing month is called Personal Volume (PV). So, for the billing month of April you purchased products for 50 points, therefore, your LO was 50. Let’s enter this number in the LO column.

What is a tree (network)

You already know that a Distributor can attract other people to distribute products, and they, in turn, can do the same.

An organization consisting of Distributors who were recruited by you personally and all your Distributors is called your tree (network). The people you personally signed make up your first generation. People who were signed by your first generation Distributors are your second generation and so on. Generations are sometimes also called levels .

Who is a Sponsor

When filling out the Agreement, in the “Your direct sponsor” column, you enter the name and registration number of the Distributor from whom you learned about the products offered and the marketing plan. Distributors of your first generation, when filling out the Agreement, will indicate you as a Sponsor, because it was you who told them about Mirra-Lux. Since your remuneration as a Distributor depends on sponsorship activities, you are interested in learning more about the product, how to use it, distribution rules, and transfer this knowledge to the Distributors you recruit.

Why is the person who signed me my Sponsor, because he didn’t give me any money?

Here we are talking about information sponsorship. He gave you a more valuable thing - information where you can earn this money. As the hero of one famous work would say, he gave you “the key to the apartment where the money is.”

Is it possible to change my Sponsor?

No. The Mirra-Lux marketing plan does not provide for the possibility of changing the Sponsor.

What is a personal group

A personal group is all the Distributors whom you yourself recruited to work and of whom you are a direct Sponsor. In other words, your personal group is your first generation.

What is group volume (GO)

Group volume (GP) is the sum of the Personal Volume (PV) of the Distributor himself and the PV of his first generation of Distributors.

But if a Distributor has a LO < 50 in a given month, then the sum of the LO of Distributors of his first generation goes into the LO of a higher-level Distributor with a LO greater than or equal to 50 points.

Since you do not yet have your own Distributors, your Group Volume is equal only to your Personal Volume. In the GO column of the table of parameters of your work in April, we enter 50 points.

What is a reward system

Any Distributor has the opportunity to purchase products from the company’s warehouses at wholesale prices, which are on average 30% less than recommended retail prices. The recommended retail price is also indicated in the price list, and this is the price at which the company recommends that you sell the product.

What does it mean, the company recommends? Why can't I sell at a higher price?

If you find someone willing to pay 100 rubles for a jar of cream that costs 30, please sell it! But you should not sell products at prices lower than those recommended by the company, because by doing so you undermine the business of other Distributors. We will talk more about the Rights and Responsibilities of an Independent Distributor later.

This means that your income, at a minimum, includes that same 30% of the cost of the products you sold (this is income from retail sales). But if this were the only point of your income, everything would be very simple and uninteresting: “bought cheaper - sold more expensive.” In network marketing, income from retail sales is by no means the only one: there is a developed system of rewards that are awarded based on the results of work for the billing month.

The Mirra-Lux marketing plan considers the following types of remuneration:

1. PLP

– Bonus for fulfilling a personal implementation plan;

Read also:  The Federal Tax Service has published control ratios and forms of financial statements

• PRG

• PRG – Prize for the development of a personal group;

• LVM

– Master’s Leadership Reward;

• SB

– Sponsorship Bonus;

• IS

– Integral Bonus.

The first two types of income can be received by any Distributor, the last three - only by Masters. All listed rewards are calculated by a computer once per billing month according to strictly defined rules.

What is a personal plan

The Company does not require its Distributors to make a certain monthly volume of purchases. However, in a marketing plan there is such a thing as a personal plan.

A personal plan is a volume of personal purchases for which you can qualify for accrual of rewards. Each Distributor is given a personal plan of 50 points per month. That is, in order to receive a reward, you need to have a Personal Volume equal to or exceeding 50 points in the billing month.

Any rewards are awarded to the Distributor provided that his Personal Volume (PV) is at least 50 points. Otherwise, the Distributor's remuneration in the billing month is zero.

When calculating all rewards, the Distributor's Qualification recorded at the beginning of the billing month is used.

These two points are very important, so read them again and try to remember them.

What remuneration does the Consultant receive?

If you have fulfilled your personal plan, your remuneration consists of the Personal Sales Premium (PLP) and the Group Development Bonus (PDG).

* - note: the Consultant’s PLP does not include the very first 50 points of his Personal Volume (PV).

Let's go back to the example and calculate your remuneration. In April, your LO was 50 points. Since while you are working alone and you do not yet have first-generation Consultants, your reward will be 5% of 50 points (PLP), which is equal to 2.5 bonus points. Just don’t forget that since these are the very first 50 points from the moment you started working at Mirra-Lux, you will not receive PLP from them. For all subsequent points you will certainly receive a Personal Selling Award (PSA).

What are reward points

Do not confuse distributor points (points for purchases) and premium points.

Premium points are the points in which the reward accrued to you is expressed. The cost of one bonus point is five rubles. Feel free to multiply 2.5 bonus points by 5 rubles. It turns out 12 rubles 50 kopecks.

What is Rank Volume

The Rank Volume (RO) of a Consultant is the monthly volume of distributor points accumulated by you and all Distributors of your first generation.

For now, just take note, and we will definitely return to this issue: The Rank Volume of the Manager and Director is calculated a little differently. The Rank Volume of an Executive also includes points scored by Distributors of his second generation, and for a Director, the Rank Volume also includes points scored by Distributors of his third generation.

However, if your Personal Volume (PV) in the billing month is less than 50 points, then your Rank Volume is equal only to PV, and the sum of PV of your first generation Distributors goes to the PV of a higher-level Distributor with PV greater than or equal to 50 points.

Your PO for April was 50 points, and you do not yet have first-generation Distributors, so your PO for April is 50 points. We will note this in the table of parameters for your work in April.

What is Accumulated Rank Volume

There was one column left blank in the table of parameters of your work in April - NRO (Accumulated Rank Volume). Accumulated Rank Volume is your piggy bank, where your Rank Volume (RO) is deposited every month.

Accumulated Rank Volume (AVR) is the amount of RO for all months of your work as an independent Distributor of Mirra-Lux.

The accumulated Rank Volume does not in any way affect the accrual of rewards in the billing month, but the increase in your Qualification depends on it.

In our example, since you have only been working for the first month and have no savings yet, your NRO is equal to the RO for April and is 50 points. Let's put this number in the table. Next month (May) the Rank Volume for May will be added to these 50 points.

Is it possible to work alone

It is possible, and the marketing plan allows for this option. But the question is different: in this case, will you be able to effectively use all the wealth of opportunities provided by the very idea of ​​network marketing? Let's look at a simple example, and you can answer this question for yourself. Precisely for himself, because in MLM everyone determines for themselves what they want to achieve. Perhaps it is enough for you that you simply have the opportunity to buy good cosmetics for yourself and your family members, and at a wholesale price. This is your complete right. But let's return to our question.

Let's assume that you work alone, and every month you buy 50 points worth of products. Having the Consultant Qualification, you receive a reward - a Personal Sales Award in the amount of 2.5 bonus points monthly (12 and a half rubles). However, I would like to note that in April you will not receive the Personal Sales Award, since it does not include the very first 50 points of the Distributor’s Personal Volume.

Now let's see how things will go if you invite five assistants in May. Agree, it’s not so difficult to find five people by looking in your notebooks and remembering your friends. Now you have your own network.

For the convenience of calculations, let’s assume that they start working the same way as you, and in May each of them purchased products worth 50 points. You yourself, like in April, also made a purchase for 50 points. Let us now fill out your May table.

Table of parameters for your work in May.

In the Personal Volume (PV) column – points scored by you personally in May (50). In the Group Volume (GO) column we enter the number of points scored by you and your first generation Distributors (50+50+50+50+50+50=300). Your Rank Volume for May, since you are a Consultant, includes the points accumulated by you and your first generation Distributors (50 + 50 + 50 + 50 + 50 + 50 = 300). In the NRO column (Accumulated Rank Volume) we enter the Rank Volume for May (300 points) plus 50 points that were already in your “piggy bank” (NRO based on the results of April).

Now let's calculate your remuneration in May. In addition to the Personal Sales Award (2.5 bonus points), you will receive another 5% of the LP of each Consultant of your first generation (Group Development Award). It will amount to 12.5 bonus points. So, in May you earned 15 points, which is already noticeable - 75 rubles. And this is far from the limit. We have already noted that with each step up the career ladder, your remuneration will increase. The next step is the Leader.

How to become a Manager

As soon as your Accumulated Rank Volume reaches 500 points, you will immediately be awarded the Manager Qualification (of course, based on the results of the billing month).

I received an “Individual Report...” and I can’t understand how the GO and RO were calculated for me. Can you explain please. My network is shown in the picture.

First, let's deal with your Group Volume (GO). It consists of your (K1) Personal Volume (LO) and the LO of Distributors K2, K3, K4, K5, K6. In addition, since Distributor K2 did not fulfill his personal plan (his LO<50), the sum of the LO of the Distributors of his first generation (K7 and K8) goes to your GO (since you are a higher-ranking Distributor with a LO greater than or equal to 50 points). In turn, Distributor K8 also did not fulfill his personal plan, so the amount of LO of Distributors of his first generation (K11 and K12) also goes to your GO. In other words, we can say that all these people ( K7, K8, K11 and K12) seem to be rising into your first generation, but only in the calculations of a given month! So, your GO = 203 + 27 + 15 + 50 + 37 + 16 + 38 + 23 + 60 + 6 = 475.

Your Rank Volume (PV) as a Consultant includes your Personal Volume (PV) and the PV of your first generation Distributors. For the same reason as in the GO calculations, in addition to the LOs of Distributors K2, K3, K4, K5, K6, your RO also includes the LOs of Distributors K7, K8, K11 and K12. Therefore, your Rank Volume is 475 points.

To avoid a misleading impression, I will note that Group Volume (GV) is not always equal to Rank Volume (RV), although this is indeed true for Consultants.

Common mistakes made by credit card users

Credit card users make a number of mistakes that can result in large overpayments on the loan and high interest rates. Such mistakes include:

1. Forgetting to make the minimum payment or paying off a debt. This is the most common mistake made by all credit card users. This happens especially often if the owner has several credit cards from different banks. To prevent this from happening, you can set up an alert using SMS or automatic payment from wages.
2. You can't pay at the last minute. You should always expect that the payment will take some time to process. If you pay your debt through another bank, payment may take several days.
3. Pay only the minimum payment. If you pay only the minimum payment, then repaying the loan debt may take several years.
4. Cash withdrawal. You should not withdraw cash from a credit card, since this means an increased interest rate and no grace period.
5. Inattention when drawing up a contract. Even the most attractive conditions should be double-checked several times. In any case, the bank will not leave itself at a loss, and therefore, when applying for a card, it is necessary to read all the fine print in the agreement.
6. Failure to use various bonuses. When using a credit card, you should definitely take advantage of discounts and other advantageous offers. The loyalty program helps reduce losses. It is important to choose the conditions that are favorable to you.
7. Additional services. When applying for a card, you should refuse unnecessary services and leave only those that are really necessary.
8. Having several credit cards. This is very dangerous because it is easy to get confused and miss the grace period.

IMPORTANT!

To avoid having to pay higher interest rates, you should not use the card to transfer money to electronic wallets or other cards.

How to use the interest-free period?

To properly use the interest-free period, you must follow the basic rules of a competent client:

1. All money spent and minimum payments must be returned on time.
2. The amount and date of payments can be viewed in the statement that the bank provides in the “Personal Account” or in the mobile application.
3. If you cannot pay the debt by the end of the period, then you must make the minimum payment.

IMPORTANT!

The money withdrawn for annual maintenance can be “recaptured” by taking advantage of various bonuses and cashbacks.

If you use a card without cashback and interest on the balance, you are losing money

To attract customers, banks offer various bonus programs for purchasers of credit and debit cards. Using plastic without such bonuses and cashbacks is a waste of money, since even small interest on the balance can reduce the cost of annual card maintenance.

Credit card – almost every modern person has this financial instrument. But in order to skillfully use this tool and not overpay huge amounts in the form of interest, you should use the grace period, which is included in almost all loan offers. It is enough to make the minimum payment or manage to repay the debt before a certain period, and the loan will be free for you. But before applying for a card, it is recommended to carefully study all the bank’s conditions.