What should you choose: a credit card or a revolving loan in your account?

A credit card is a convenient solution that can allow you to use your free credit limit during the interest-free period. The advantage of a revolving loan is, in turn, high availability of funds, automatic repayment and lower costs incurred by the customer in the case of long-term repayment of liabilities.

Credit card loan

Credit card

A credit card is a type of payment card issued at the customer’s request by the bank, but only if the creditworthiness and creditworthiness are verified.

The bank calculates whether the potential borrower can afford such a loan and what limit can be made available to him under the credit card.

Physically When will the bank return the stolen money from the card?

Physically When will the bank return the stolen money from the card?

A credit card, in fact a piece of plastic bearing the logo of the institution issuing the card (Visa or MasterCard) and the bank’s logo, as well as customer data and card number, is a carrier of credit granted by the bank. This loan can be used for any purpose.

Depending on the card, the maximum loan amount usually does not exceed several tens of thousands of zlotys, but this limit can be used many times if the previous debt is due Acone. In general, the card is granted for 12 months with the option of renewal.

The most important from the borrower’s point of view are the costs associated with the credit card. The customer pays a fee related to the issue and possession of the card, and if he uses the credit card limit and does not pay the debt in the so-called in the interest-free period of usually 56 days, then the bank will charge interest on the used loan amount, according to a variable interest rate.

What is the limit in the personal account?

Credit score

A convenient form of credit for personal account holders will be a revolving loan in your account, also known as a credit line or account limit. In order to obtain such a loan, you must have an account with a given bank and you must apply for it.

The bank will recalculate its creditworthiness on the basis of receipts to the client’s personal account, check the history of credit in BIK, and finally issue a loan decision. If it is positive, the loan in the form of a bank account will be granted and can be used for any purpose. As a rule, the limit is granted for 12 consecutive months.

The account limit can only be used after all the funds belonging to the customer have been used and credited to the account. The client incurs costs in connection with the credit line in the form of:

  • commission on granting and prolonging the loan,
  • interest accrued only on the credit amount used – they are automatically charged from the personal account, and the interest rate is usually variable,
  • fees associated with maintaining a bank account.

The account overdraft limit can be used many times after repayment of previous debt. Each payment to a personal account with a credit limit results in the repayment of part of the loan commitment.

What should you choose? Revolving loan or credit card?

What should you choose? Revolving loan or credit card?

In the case of credit limits and credit cards, these are products that work well for customers who need immediate financial assistance and want to secure it earlier, preventing a budget deficit. home. A credit card will be a better solution for active customers who often make non-cash payments. This will allow them to avoid being charged for having an additional card in their wallet.

The card also gives you the opportunity to use the loan for free, thanks to repayment in so-called interest-free period. Credit card credit is generally a more expensive solution than the account limit if the customer repays more than just during the interest-free period. The credit card also requires the customer to have self-control in making repayments, and with the credit limit they are automatically applied with every payment.