First of all we have to say that we mean real credit cards. There are roughly four times less than debit cards in the Czech Republic, but people like to use credit cards as all credit cards. The differences are considerable:
- When you pay with a debit card , only your account balance is available.
- On the other hand, a credit card works like a loan – you borrow money from a bank up to the set credit limit.
But credit cards have one big advantage over loans. If you pay off the debt in the so-called interest-free period, you do not pay an extra crown.
You can have your money free for a month or a day
Even in 2013, however, two-thirds of Czechs did not know how the interest-free period works. Because of this, they could often lose its benefits. The situation was better last year, but it will not hurt to remind the principle of interest-free periods, although the conditions are slightly different for each card.
For our credit cards, the interest-free period is calculated from the first day of the month you made the purchase. During this period, which lasts up to 51 days, you do not pay interest, but you have to settle all obligations by the end.
This way of payment is especially suitable for clients who always have sufficient cash and good payment discipline. However, a credit card does not pay off as a long-term consumer loan.
Enjoy discounts, but always think about your options
With your credit card, you can go shopping and don’t have to know if you have enough account balance. In addition, many merchants offer credit card holders various benefits, and providers themselves have a number of benefits and bonuses for their clients . Just be careful not to get carried away and do not exceed your possibilities.
An example of a credit card with many benefits is our Premia card, with which you collect a premium CZK for each payment. Once you earn $ 100, we’ll send you a $ 100 voucher to redeem in select stores. With the Premia card you have an interest-free period of up to 51 days.