On what conditions banks issue cards with a grace period

In an environment where slashed wages and extra money to pay interest from anyone simply do not have a grace period of a credit card can really seem like a lifeline. However, experts believe the savings on such a service is very difficult. "This service has never been unprofitable for banks, because the income from it, as a rule, consist not of interest payments and from fees: for cash withdrawals, with the conversion, for the production of maps, commission payment systems - says Denis Remizov, Chief management product managers BTA. Furthermore, it is enough of an impressive client fails to comply with the conditions of the grace period, and they pay the bank interest, as if it enjoyed the usual credit card. I do not see any correlation between the crisis and the reality of this service. I think that banks can raise tariffs, such as for cash withdrawals or an annual service fee, as well as increase the annual percentage rate in the event of any breach of GP ". Using a credit card with a grace period, the borrower must know that the return of the principal amount of debt without additional fees and commissions can only be if the cards are any good. Withdrawal is almost always subject to interest, including when to make such an operation in ATM "their" bank. But in the case of a purchase, most credit institutions remove some amount of the annual service cards for activation, etc. In other words, even buying goods in a shop and paying with card, you will need to return to the bank before the expiry of the grace period the full amount of principal debt plus pay for annual maintenance. Related to this policy so that the bank is doing its utmost to reduce the risks of such an unreliable service, as the credit card. "At this time credit cards for banks are among the most risky products - commented Aleksey Barabanov, director of segment marketing of Absolut Bank. - This is due to the fact that the credit for it in no way guaranteed. This point of view is supported by many experts, focusing on the fact that every bank in the modern economy will be harder to estimate the ratio of the risk-return profile of any bank product. "Credit cards - this is one of the most profitable, but at the same time and one of the most risky loan types - confirms Andrey Kotelnikov, Head of Retail Business Sobinbank. - Amid the current economic situation should banks more cautious approach to assessing the solvency client ". But in order to better understand how profitable or unprofitable to issue today a prime borrower to a credit card, let's look at all the main and side charges on credit cards with a grace period and without it. For this we turn to the rating of RBC "Most consumer banks in the I half of 2008" and find out for what would have to pay, even if the agreement specifies Grace period. Giving advice on whether or not today simply borrowers to issue credit cards, most experts tend to start from the situation, given the proximity of Christmas holidays and the inevitability of big and small expenses. Acceptability of the solution depends on the borrower, on how sober he is able to assess the possibility of repayment in the short term. Grace period - it is a convenient service for well organized and responsible people, not doubting the permanence of their income. "Credit Card - a great tool to meet temporary" cash breaks "in the budget of the client - confidently declares Denis Remizov. - Climb into the overdraft is much more comfortable than borrow from relatives or friends, especially when you're sure will have something to give." But the credit card can turn into a debt trap for borrowers who are unable to plan their own income and expenses. Finally, this type of banking product just is contraindicated for people working on closing factories or topped the list for redundancy in their organizations. "The decision on registration of a credit card is taken, relying primarily on their financial position - emphasizes Andrey Kotelnikov. - Borrower must soberly assess their financial capabilities, so that in case of closure or reduction in credit limit are not left without money." The Bank (view Klasssicheskuyu credit card) Grace period for activation maps Commission / annual maintenance fee for cash withdrawals at their ATMs fee for cash withdrawals at ATMs of other banks credit limit (in rubles) Annual percentage of avant-garde to 50 days 600r. 3% from 3,5% to 4,5% 150 000 17% Russiky standard Up to 55 days 600r. 3,9%, minimum $ 100. 3,9%, minimum $ 100 + commission third-party bank 300 000 28% VTB24 Up to 50 days 750r. 3,9% minimum 300r. 3,9% minimum 300r + commission third-party bank 300 000 24% -28% Alpha Bank up to 60 days 875r. 3% of at least 75r. 3% + commission third-party bank to 90 000 23.99% -27.99% OTP Bank No No charge 4% of the Parties to the bank for the issuance of 5.99% + 150 000 24% -36% of Moscow Credit Bank of up to 55 days 500r . 1%, at least 90r. 1%, at least 90 r.komissiya third-party bank 150 000 18% up to 50 days Raiffeisenbank 900p. 3%, at least 325r. 3%, at least 325r + commission third-party bank 210 000 24% PSB to 50 days of 900p. 3%, at least 180rub. 3%, at least 180rub + commission third-party bank 250 000 24%