Credit cards are a very popular form of payment among German consumers.
Whether at the gas station, in the restaurant or shopping in the Fergertown: The small companion made of plastic is always present. In particular, with cross-border payments, as they often occur in the case of purchases via the Internet or during a stay abroad, it is possible to renounce a credit card nu painfully.
It is well known that the use of a credit card can also be a problem for one or the other consumer – expenditure control is made much more difficult by the use of a card that accumulates charges and bills on a monthly basis. The so-called revolving credit cards, which are known on and for themselves rather in the American area, but are also conquering the wallets of consumers in this country to an increasing extent, massively obviate this problem.
The principle of a revolving account is as follows: The credit card holder, as in other cases, is assigned a credit line. In this he can move freely. Once a month, as usual, the invoice comes with the sales made in the past accounting period. The difference to other credit cards: It does not have to be repaid the entire amount, but only a percentage fraction, which can be limited to only three percent of the outstanding balance. With a revolving card, the bank customer acquires an always callable installment loan, whereby this comparison lags.
With a normal annuity loan,
The remaining debt will automatically fall over time. In the case of a revolving card, the holder is immediately available again after repayment of an amount. The cards can therefore always be operated at the limit. Such behavior, however, is an expensive pleasure: for balances that are settled in installments, banks demand horrendous borrowing rates, which can amount to up to twenty percent a year.
For example, anyone who buys close to their 5,000-euro limit pays 1000 usd interest per year in addition to the fees that are associated with the cards anyway. Revolving cards are therefore ideal for driving undisciplined consumers into debt.
Nevertheless, the products should not be completely demonized at this position. They offer the owner a high degree of flexibility. The cards are only really expensive when the credit limit dauer is used on a permanent basis comparable to the current account credit. As an additional financial reserve, the cards are certainly on. However, those who have difficulty controlling their consumption spend better on the revolving cards.
Anyone who is interested in the products can quickly find suitable providers by researching them on the Internet. The cards are distinguished in terms of the minimum amount of balance to be repaid and the lending rate for the loan drawn. The connection between these two features is quite clear: the less the cardholder has to pay back immediately, the higher is the borrowing rate.
Conclusion: If you find a favorable offer, it can certainly perceive. However, the credit line is less suitable for permanent use – it is simply too expensive. Larger purchases are therefore better handled via a classic installment loan.