Applying for a credit card is becoming increasingly popular with Hungarian consumers, as the card has many benefits when used wisely: you can earn bonus points, receive discounts, and even use a cashback. Of course, it also gives you a sense of security that even if you are temporarily short of money, there is something to touch.
If you want to enjoy these benefits, all you have to do is apply for a credit card. In this article, we’ll look at what this process looks like, what you need to be prepared for, and learn how you can do to get your card successfully.
Don’t hesitate to apply for a credit card
To begin with, let’s make it clear that, as it can be very useful, a bad credit card can ruin your finances. A typical mistake is to request a plastic to somehow pull it out by the end of the month when your pay is gone. Using a credit card is just like taking out a personal loan or mortgage, and it is one of the most expensive constructions. If you do not pay it back, you will be charged interest on your debt. The burden that you start rolling in front of you is getting bigger and bigger, and it will be harder to pay back. It’s really easy to get into a credit spiral from here.
The saying goes that credit cards are a toy for the wealthy. If you can afford to pay two to three times your credit line without a problem, you can safely claim a credit card. Otherwise, you only want to apply for a credit card with very conscious, accurate financial management. But if you do, we’ll show you what to do!
Retail Credit Card Application – Where Can You Do It?
Your bank may have been looking for you to claim your credit card successfully. In fact, not long ago, one bank sent a card to almost all positively reviewed customers without question, then activated it to anyone who wanted it. This case also shows that not only can you apply for a credit card, but in a big race, banks are also trying hard to get this type of credit to their customers. In any case, here are some examples of where you might want to search if you are interested in applying for a credit card:
Internet Banking: If you are banking online, it only takes a few clicks to start the credit card application process at most banks or request a callback on their website. Whether you like the offer of OTP Bank, Erste Bank, UniCredit Bank or the credit card available at K&H Bank, you can quickly and easily apply for a credit card online.
Direct Request: You can start the process with the help of a direct marketing material (such as a letter with a card in it) or a bank telephone call.
Applying for a Personal Credit Card: Of course, you can also choose the traditional way, which is to take yourself in, go to the branch and request a card from the clerk. It’s a good idea to go with the necessary documents to save time.
While shopping: Yes, it is possible. There are several store chains offering credit cards that you can apply for on the spot, but when buying larger products, you often have a credit card application for credit card applications.
The necessary documents – you will definitely need them
Remember, this is basically just as much a loan as any other financial institution can give you. That is, the bank has to make sure that you will repay the loan, which is revealed by some tests and by checking the following documents:
valid Hungarian identity card or passport or driver’s license
Bank statement if you do not have a current account with the bank where you are applying.
If you are paid elsewhere, you will need an Employer Certificate of not less than 30 days as an employee, you can prove your income by retirement card or annual notice (or an official copy of it not less than 30 days), and as an entrepreneur and you must provide proof of your public debt.
There are a few personal conditions that you must meet:
Minimum income varies by bank, but you can apply for a card with a monthly net payment of $ 200
You are not on the KHR negative debtor list
You are 18 years old
Provide the bank with the necessary data and contact information
At least 3 months as an employee, or as a retired or self-employed person
Instant Credit Review – Learn the process
In most cases, there is an immediate, simplified credit review, for example, when you apply for a credit card contract alongside a merchandise contract in a shop. That is, with the proof of income and personal documents, the process is carried out locally at the point of purchase.
The product is yours, you can take it from the store, but the documents are still sent to the credit assessment department, where the credit assessment decision is finalized. You will also receive the card later, which you must activate before you can use it. However, the loan agreement is in effect from the time of purchase, so you will have to repay the loan.
In some stores, you will receive a card immediately so you can activate it and buy from there.
Credit line and installment
How much credit your bank sets when applying for a credit card depends on how much you earn. Typically, you will receive three or four times your salary. You may ask for this to be changed at a later date, but this will be reviewed again to see if you can safely repay the higher loan.
What you need to keep in mind is to pay back the full amount as much as possible during the grace period. That is, 30-45 days, when you can use your bank money without any interest charges. If you repay the loan within this regular time frame, you could use the loan free of interest. However, if you slip, the financial institution will charge you interest on the debt, which you will have to pay in addition to the amount you have used. If you are unable to repay the full amount on time, it is advisable to repay at least the minimum amount. This will pay your monthly fees and expenses, pay off a small amount of your debt and thus avoid penalty fees.
If you are considering applying for a credit card, you should pay attention to the size of the APR. This shows how expensive the card is, as the index includes the charges and the interest rate. In the current card market, you can find deals with an APR of over 36 percent, which seems to be no cheap credit.
When choosing a credit card, also look at the costs and benefits of the card. For example, some banks release the card fee for a certain amount of spending. But it’s also worth calculating how much you take advantage of bonuses, discounts, and how much money you can earn with the card. You may not be looking for a credit card with a low spend, as the fees (account management fee, card fee, administration fee) may be higher than you get after your purchase.
Claim it easy, use it wisely!
As you can see, you no longer have to spend days applying for a credit card, you have a credit review for one or two and you just have to wait for the card to be manufactured. And if you use the card wisely, you can make money with it. To do this, of course, you need to be aware, and make sure you always pay off your debt on time. Responsible financial behavior is a child’s play, so a credit card can become a useful part of your financial toolbox.