A credit card is a payment mean that requires a responsible approach. On a limited scale and with the correct application, it is useful, and when used carelessly, it drives the holder into a financial trap. It’s like an anesthetic drug: micro doses strictly according to schedule and purpose support a comfortable state of health. But an uncontrollable and impetuous increase in search for pleasure leads to a subsequent “breaking” and perishing health. The analogy of loan with drug addiction, alas, is quite appropriate.
So use such a powerful and highly effective “drug” as a credit banking product based on wise assessment, strictly according to instructions and keeping the side effects in mind. Although the card is a supportive and sometimes salvage pill, it will never replace your own financial health and will not make you richer. Here some restrictions to keep in mind.
What Are Limitations On A Credit Card Use?
Recently, purchases through the Internet are becoming more popular. And this is understandable, because online shops have a number of undeniable advantages over traditional ones. So let’s determine what the card is more appropriate for Internet payments. First of all, it should be of a certain class, not lower than Visa Classic or analogue, which has the opportunity to impose a limit. You may correct its size in the bank branch or via support line/Internet banking. This is also a mean of self-control so as not to waste.
Some bank can unexpectedly impose restrictions on the use of loan funds: a certain amount per day, or not more than a specific sum per month for any transactions. This measure is usually carried out to maintain the stability of some bank or even state banking system in case of emergency. Also there can be a restriction on the use of personal funds while cashing in, while for non-cash transactions there will be no regulations.
Limited credit lines
A credit line is a fixed total cash limit, which the bank provides to its customer with specific parts and at certain time periods. Also, some credit lines can have special limit: on the cash in or on loan taken from the bank:
– Issuance limit: can help a borrower stick strictly to the amount that was set in the loan agreement. Even with the repayment of a certain part of the debt, the credit limit cannot be increased, so this is undoubtedly a non-renewable type of credit line.
– Limit on debt: can be opened again and again, as soon as the amount of debt will reach a certain amount. In other words, by returning some of the money, the borrower can use the borrowed money again.
So before you get a credit card, research all terms and conditions for using it, including possible limitation in different aspects.