Credit cards: how to choose

Credit cards are an important tool and used by many consumers: from those to balance to revolving, before choosing it is good to inquire about the characteristics of each and then sign a new contract.



CREDIT CARDS: KNOW THE VARIOUS TYPES
Credit cards and revolving cards: the differences and advantages of both to consciously choose your payment instrument.

Credit cards

HOW TO FIND THE MOST SUITABLE CREDIT CARD
Electronic payment cards are a widespread tool, both for their convenience and for their security. Thanks to the variety of products offered by the banks, moreover, to find the tailor-made solution for itself it will only be necessary to inquire about prepaid cards and their different types, rather than traditional or revolving credit cards.



Compared to carrying too much cash, payment cards are a safer choice. Of course, it can also happen to lose them, but in these cases just follow these simple instructions on how to block your credit card , thus preventing any loss of money.

However, there are very different types of cards, which is why it is advisable to be well informed. In this choice it is necessary, in fact, to first evaluate one's own needs and habits, because for each user there is an advantageous credit card, designed precisely to satisfy certain needs.

In fact, there are two main types of credit card: the balance and installment ones, better known as revolving cards. Each has its specific characteristics and its advantages.

CREDIT CARDS
The credit card is the most widespread and known in Italy. It is usually granted by a credit institution following the opening of a bank account. In order to make purchases or payments, in fact, the credit card must be connected to a current account from which "to withdraw" the necessary sums, even within the limits of the limits established by the bank.

The advantage of the balance card consists in the possibility of deferring the expenses incurred, as the charge of the sums spent takes place the following month. This transaction does not involve the payment of interest or additional costs: the amount spent will be deducted in a single payment from your current account, usually between the first and fifteen months of the month following the expenses incurred.



The credit card costs vary depending on the credit institution with which a current account has been opened. Often, in the case of online banks, fees for opening and running and the monthly credit card fee is free. In other cases, however, the monthly fee can amount to several tens of euros.

In addition, in some cases you will have to pay the cost of the bank statements, the fees on cash withdrawals and any cost to block the card in case of theft or loss.

If your current account has been subscribed online, you will be able to connect to the bank's website to check your movements and your card balance.

REVOLVING CARDS
The revolving cards, on the other hand, allow for the payment of the costs incurred by the customer with the card. The amount spent will have to be returned to the bank by a pre-established date and with the payment of an interest rate on the installments.

Using a revolving card is like taking out a personal loan: when you make a purchase, the amount spent will not be immediately deducted from the client's current account, but diluted over time in less heavy installments to be incurred.

The advantage of revolving cards is their flexibility: it is the customer who chooses the number of monthly installments and their amount and it is also possible to pay a single installment including the entire amount to be repaid. The installments must also include interest on the amounts actually used and not on those made available by the bank.

The maximum limit that can be spent with the revolving card is established by the institution and is usually decided on the basis of the creditworthiness of the client. In this regard, the customer to obtain a revolving card must produce documents to guarantee its solid economic position and reliability.

Revolving cards usually involve activation fees and the payment of an annual fee. Attention however: usually the interest rates applied to the amounts to be returned are very high, so we must carefully evaluate the real advantage of the card.