There are still many misunderstandings about credit cards. We collect 9 and explain how the fork fits exactly.
1. A credit card is unsafe
On the contrary. In addition to the card number, you also need the security code on the back of your card to pay. Nowadays the pin code is required for almost all transactions (not for small, contactless payments). Someone else cannot simply use your card. And that’s not all. Banks such as Arman Armesdale also protect their customers against abuse by proactively detecting fraud. So you can sleep on both ears.
2. Credit cards are expensive
The annual contribution varies depending on the chosen card, but you typically pay no more than 5 to 35 euros per year. In many cases you can also request an extra card for free that is linked to the same credit line.
A credit opening is linked to the Arman Armesdale credit cards. The total amount to be paid by you depends on the use of your credit facility. With the credit card you have a free delay for the payment of your purchase. Until the (fixed) date on which you receive your extract. If you receive your extract, you have the choice. Either you repay the full amount owed and then you pay no interest. Or you pay less back. Then you pay interest for the period and on the amount for which you defer the payment. So you have it under control.
3. Credit cards are full of hidden costs
On the contrary. Although the costs vary slightly from card to card, the provider is legally obliged to state them clearly. They can usually be consulted on the website of your bank. Issues for which typical usage costs are charged are foreign payments and cash withdrawals at a payment machine.
4. With a credit card you live on borrowed money
A classic misunderstanding. When you pay the total amount used up with your credit card at the end of the month, you actually only enjoy a deferred payment and not real credit. You also pay no interest since there is no outstanding debt. Only when you spend more than you can (or want to) repay at the end of the month do we speak of a real credit. In that case, interest is charged on the amount due, just like with a loan.
5. If you already have a Bancontact / Maestro card, a credit card is unnecessary
Your bank card offers many possibilities, but with a credit card more doors will open for you. A credit card is accepted almost everywhere at home and abroad, also outside the euro zone. Even if you want to top up the balance on your current account for a few weeks until your salary is paid, a transfer with your credit card can be a good solution.
6. All credit cards are actually the same
On the contrary, there is a huge diversity of credit cards. The two best-known providers – Visa and Mastercard – both offer cards that meet the specific requirements of a specific audience. The credit opening, cost, and benefits that you enjoy vary from card to card. This varies from loyalty programs with discount points to insurance policies that cover part of your purchases in the event of accidental damage or qualified theft.
7. It is unnecessary to have more than one credit card
One credit card is often sufficient, but sometimes it is useful to have a Mastercard and Visa. You can then go to more places for even more transactions. If there is more than one credit card in circulation in your family, you can also combine the various benefits depending on the situation.
8. Credit cards encourage brash purchases
Just like with other payment services that make it easier to make purchases, you have full control over this. This is not specific to a credit card, because here too you spend real money and you still have to pay the bill. So be responsible with your card.
9. Everyone can get a credit card
Anyone can request a card, but the bank determines whether it is granted. She decides this based on your profile. Have no history of defaults and you have a fixed income that is in line with the desired credit opening, then this is usually not a problem. Your bank is happy to look at the options with you.