My WordPress Blog

Installments on a credit card – few know it, and it really pays

A credit card is a type of payment card the use of which involves the use of a revolving loan. The card is issued by the bank, which allows the client to use the bank’s funds within the granted credit limit. This limit is set on the basis of the client’s monthly income and credit history.

Credit Card How does it work? If you are a credit card holder, it means that you have been granted a credit limit that you can, but you do not have to use. The only thing to keep in mind is that the funds you reach for are the bank’s money – if you use it, you’ll have to give it back.


Credit Card – What It Does And How It Works

Credit Card - What It Does And How It Works

The credit card is most likely connected to your online banking, so after logging in you will see two balances – the value of the “main” account and credit card, and this will definitely help you monitor your expenses on an ongoing basis. Only this is not a rule – you can have a credit card in a bank other than your main account.

Credit card transfer – of course you can, but is it worth it? If you want to make a transfer from a credit card, all you have to do is log in to your online banking and go to the transfers tab. After entering the amount and the recipient’s details you will have to choose the account from which the funds will be withdrawn – in this case it will be a credit card account. Remember, however, that paying with a credit card pays – it’s not necessarily the cheapest tool to transfer money.

Credit card repayment – the second, less pleasant stage of using a credit card is its repayment time. The undeniable advantage of credit cards is the so-called interest-free period, ie the time during which the bank does not charge any interest on transactions made. How long is the interest-free period? It usually lasts between 36 and 57 days.

Billing cycle – ends with a summary you get from the bank


This is a list of transactions made at that time. The billing cycle lasts 30 days.

Debt repayment time – it takes about 20 days. This is the time when you should pay off all the debt so that the bank does not charge you interest on card transactions. What is important – I mean only non-cash transactions – the interest-free period does not apply when you withdraw money from an ATM card.

How do you pay off your credit card? The repayment process is very easy. All you have to do is log in to your electronic banking and click “Pay”, which will be displayed next to the card. After clicking you will have to enter the repayment amount and confirm the transaction. Warning! The card will be repaid provided that there is sufficient funds available on your main account.

Credit card and creditworthiness – A credit card has the same impact on your creditworthiness as any other loan. Therefore, if you are thinking about taking out a new loan, then you must remember that credit cards can be an obstacle. And if you don’t repay your debt on time, it may result in a denial of credit.

Credit card – payment in installments

Credit card - payment in installments

The credit card interest rate is quite high, so its important that you pay your debt on time. Unfortunately, sometimes there are various random accidents and it may be that you will not be able to pay the entire liability immediately – so you should consider other available options.

One option is to pay your credit card in installments. You will need to contact the bank to start the entire procedure. After the instruction, the bank will divide your debt into parts (installments) that you will pay off on a monthly basis.

The number of installments to which your commitment will be broken depends on the bank’s offer and the amount borrowed. Usually it is from 3 to even 60 months.

Installment credit card – before you decide to spread your debt into installments, carefully check your bank’s offer. It may turn out that your bank not only does not provide a free installment service but also adds a number of other commissions to it or charges you for handling the entire operation.