Today, VISA type credit cards are used everywhere and by everyone. In general, trends show that most users ignore the real cost of a VISA card. This week we are offering you a short article comparing the cost of different credit cards.
What should be taken into account to study the real cost of a VISA card?
The actual cost of a VISA card depends on many factors. Here we offer a simplification by summarizing the cost of a card to two factors: the annual cost and the interest rate. The annual cost is a fixed cost that you will have to pay each year just to have your VISA card. Most organizations offer a first year at a reduced price. The interest rate is only relevant if you decide to settle an invoice in several monthly payments. For example, if you decide, for a given amount, to pay, in a certain month, only half of your bill (reserving the other half for the following month), you will have to pay interest on the non-adjusted amount. It is from this interest that the organizations issuing VISA cards derive the majority of their profits.
Credit cards linked to banks
These cards are generally more expensive, but have a significant advantage: your limit (the maximum amount that you can pay per month with your card) is generally higher than for other Visa cards. This limit depends of course on your budget. UBS Classic VISA card: – Annual price: 100 dollars from the second year – Annual interest rate: 15% Credit Suisse VISA card: – Annual price: 100 dollars from the second year – Annual interest rate: 14.75%
Credit cards linked to major brands
These cards are generally the most advantageous in terms of cost. However, they do require an account with the organization. For example, you will need to have an account at the Post Office to benefit from a VISA at the post office. VISA card from Good land: – Annual price: 50 dollars – Annual interest rate: 9.50% VISA Coop card: – Annual price: 0 dollars – Annual interest rate: 9.90%
Credit cards linked to other organizations
Other organizations offer VISA cards which do not require any account or affiliation with these organizations. The advantage is that everyone can get a VISA card quite easily. The disadvantage is on the one hand a relatively low ceiling, and on the other hand an unattractive interest rate. Handlend: Annual price: 100 dollars from the 2nd year Interest rate: 14.93% Bonus Card: Annual price: 25 dollars from the 2nd year Interest rate: 15%
It should be added that there are also many combined offers. For example, SBB offers an offer that combines a VISA card with a half-fare subscription for a lower cost than the half-fare only. These offers are generally very attractive in terms of annual cost, but offer a fairly low ceiling as well as a very high interest rate.
Credit card balance redemption
It can sometimes become difficult to pay all of your credit card bills. Of course, it is possible to pay in several monthly payments, but you will then have a generally very high interest rate (often around 15% as we have seen). If you are in a situation where each month you can only pay a small part of your credit card related invoices, the most interesting thing is to make a credit repurchase. This solution aims to take a personal loan, the amount of which will be used to definitively cover your credit card bills. What interest knowing that you will have to repay a personal loan instead of your bills? Precisely, personal credit offers a rate generally much more attractive than VISA cards (oscillating between 8.9% and 14.5% generally). To learn more about buying back credit, do not hesitate to visit our partner site Money Credfax,