What is a Credit Card? and the best for you

Every time we go to the bank the employees ask if we want a credit card but what is it exactly? A credit card is a bank card that can be used both in Egypt and abroad either at physical shops or online and without your bank account being debited. 

The credit card is linked to a bank loan which you then have to repay later with interest according to the card’s payment plan. The interest rate depends on the card type offered by each bank and on the rate enforced by the Central Bank.

Payment plan:

After using the card for your purchase the bank grants you a grace period between 48-55 days during which you can repay the credited amount interest free. After the grace period is over, the bank issues a bank statement detailing the owed amount, the minimum payment due, and the payment due date. If you do not pay by the due date a fine will be added and the interest rate may even increase according to each bank’s rules. So it is essential that you pay your credit card before the due date!

Advantages of having a credit card:

• The most obvious advantage is that you don’t have to pay for your purchases immediately, which gives you the option of using your cash or money in your bank account for other essentials if needed.
• You can use your credit card for online purchases, an option that is not available for most debit cards. Don’t forget to always protect your credit card information. 
• You can use your credit card to pay for services on apps like Talabat or Uber without worrying about having enough cash or the correct change.

“The more you use your credit card the more points you have which you can use for future purchases or even to travel.

• You don’t have to worry about having cash on you when you go out.
• You can use your credit card abroad. The card is also insured in case it is stolen or lost at which point you must inform your bank immediately. The bank will freeze the card and any contested payments will be canceled so you don’t have to pay them.

Compare and find the best credit card for you through Faydety now!