The purchase of a credit card.
With the purchase of a credit card you have the option to pay worldwide in the currency of the country you are on are visiting. Compare the credit cards offered on their specific options. For the purchase of a credit card, it is wise to look at the usage costs in addition to the purchase costs. Depending on your own wishes, you can view the options for paying deferred payments. By purchasing a card where you do not have the expenses settled all at once, you build up a loan up to a maximum to be agreed. You are actually going to borrow money through the account that will be linked to the credit card.
What are the procedures for applying for a credit card?
When purchasing a credit card, a test will be carried out to determine the limit for which you can spend money with the card. When it is allowed to build up a loan with all the expenses, it will also have to be discussed how to repay. There are credit cards where at the end of the month you will have to repay all booked expenses in one go. Your expenses may not exceed the agreed amount in that month. It can also be agreed that you will receive a limit, as with a revolving credit, and that you will repay a percentage of the outstanding amount to be agreed upon each month.
The credit cards and the BKR
The loan associated with your credit card will also be registered with the BKR. You will have to take into account that this is a very tempting way to borrow. With a lot of expenses, it is quick to borrow money and it is advisable to repay additional amounts in addition to the mandatory installments. Borrowing money with BKR listings remains possible, except when your credit card is blocked due to delays in repayments. You will have to pay extra attention when you borrow, with BKR codes a request to increase the limit may be rejected in the future.
Your credit card and the budget
Keep an eye on your credit card budget by properly budgeting your credit card expenses in advance, you keep a balanced planning of your finances in your own hands. There is a danger of applying for a credit card because borrowing money without a BKR check is associated with risks. By keeping a good record of what you are going to spend on your card, and not spending that on your fixed monthly payments, you are responsible for your credit card. In addition to the interest, costs may also be charged on the outstanding balance of your credit card. Do the loans that are associated with the different types of credit cards that exist. With a lower interest rate to be paid, over the outstanding balance, and fewer periodic costs, you will ultimately borrow less money.
Business applications with a credit card.
A credit card can also be linked to a business loan, so that all business expenses are clearly displayed on an overview. You can easily borrow amounts of 1000 euros with a cash withdrawal that is possible at most ATM machines in the Netherlands and abroad. Withdrawals on a credit card can continue to be made, as long as the payment obligations are met as agreed. Even borrowing with benefits is easy through a payment, or withdrawal, with a credit card. Please note that when you take out a loan you agree on a limit that is more than sufficient for the coming period.
Are there any drawbacks to a credit card?
A credit card does have the disadvantage that the interest to be charged will be higher than with many other loans. The interest on the outstanding balance of a credit card cannot compete with the revolving credit interest. When you have been able to take out the cheapest revolving credit, you can, with sufficient room, transfer funds from the DK to the balance of your credit card and save a lot of interest, sometimes up to around 10%. A lot of money can also be saved if the balance of a credit card and the balances of other small loans are transferred to an interest-only loan.