Why take out a credit card instead of revolving credit? A credit card and the prepaid credit card have many advantages in payment transactions. The prepaid card has no risk whatsoever. Because a revolving credit is cheaper than overdrafting your credit card, it is best to combine the credit card with a revolving credit. That is much cheaper than being overdrawn at a bank. New is the prepaid credit card, also known as a debit card, for which no BKR assessment applies. The ANWB also has a handy credit card for on the road. You can also transfer a credit card loan to a cheaper loan elsewhere.
Credit cards such as Visa and Mastercard are very useful
The credit card is so convenient: you don’t need cash and can make purchases of up to a considerable amount every month. With a payment by credit card, the payment is advanced to you by the issuing company, Visa, American Express and many others. And because almost nothing is free in the world, the company charges you interest for this. That can be a significant interest rate, depending on the card you use. This offers great convenience: your purchases are insured and you can also insure yourself against the consequences of theft of the card. Sometimes this insurance is automatically included in the price of the credit card. The credit card not only makes it possible to withdraw extra money, but you can also save money at an attractive interest rate or save for points, with which you can also buy nice things.
Overdrawn at the bank
If you do not regularly pay the bill for purchases made with the credit card, you are in fact overdrawn. This is comparable to having an overdraft on your current account at a bank. Overdrafting happens a lot in our country and that in itself does not have to be a problem as long as you top up your balance regularly. But being in the red is expensive. Many do not realize that overdrafts can easily cost 15 percent interest on an annual basis. Yes, that can often be avoided by keeping a closer eye on expenses, but convenience serves people and if it does not get out of hand, there is not really a problem. It does require some discipline.
The prepaid credit card with negative BKR
The prepaid credit card may also be a solution. This prepaid version has not been around for very long and is especially useful if you can no longer get a regular credit card. The procedure is simpler than applying for a regular credit card. This credit card does not ask you about your income and it is without BKR assessment . You pay a certain amount in advance that is deposited on your card. Compare prepaid calling or the OV chip card. The prepaid credit card is also called a debit card in the jargon. With a debit card you have no extra credit, no BKR assessment and no variable interest, while you still have the conveniences of a credit card. But yes, extra credit with a credit card is also useful. The prepaid credit card is safe, because it holds a maximum of the money you have put on it. In addition, the card can be immediately blocked in the event of loss or theft and the PIN code is protected.
Advantages of prepaid credit card
The prepaid credit card can be used worldwide for airline tickets, booking a hotel and so on. In that respect it is a normal credit card. The costs for the card differ per provider. Well-known providers are:
- The 3V Prepaid Visa card;
- The Exacard Prepaid MasterCard.
Revolving credit is cheaper than credit card
Anyone who wants the convenience of a regular credit card can also take out a revolving credit. A revolving credit gives you the opportunity to withdraw money up to a pre-agreed maximum amount. This also costs interest, but much less than if you overdraw your checking account or a credit card company. Competition between revolving credit providers is fierce, which also means that the interest rate is often competitively priced. To avoid overdrafts at high interest rates, you can easily supplement your credit with money from the revolving credit. That is usually a lot cheaper. Moreover, a revolving credit can offer a solution here. As soon as there is more money, you also replenish your revolving credit. You can contact many providers, you can even go to drugstore chain Kruidvat for a quick loan. If you want a loan despite a negative BKR, borrowing is a lot more difficult. Also take a look at companies such as Geldshop and Amstelgeld.
A credit card has many advantages. Many companies offer a credit card. The ANWB also does that. Always use this card wisely and really benefit from the many benefits.