Credit cards All you need to know

The papers of short-term credit


you buy in-store or online and you always have the outputs under control


to withdraw cash wherever you are, even abroad


choose a credit card in balance or a refundable in installments


shop in an instant with contactless payments, even with mobile phones and smartphones


to book when you travel, to buy and withdraw when you are abroad


you always have a loan from the bank available for your expenses

What is a credit card?

It is a means of payment that you use instead of cash for both small and large expenses: a very convenient, fast, and hygienic alternative to banknotes and coins. With your credit card, you pay for purchases in the store or, when you need it, withdraw cash from ATMs. You use it as a ” bond deposit” to stay at the hotel or rent a car, or as a guarantee to make online reservations. Always online, with your credit card, you can also do all the shopping you want safely.

In reality, it is much more than a digital alternative to cash because, with a credit card, you have a loan at your fingertips. So how does the credit card work? When you make a purchase or a withdrawal with a credit card, the bank advances the money: in practice, it makes you a loan that, subsequently, debits your current account connected to the card. The charge is made in a single solution if the card is in full balance (the “classic” credit card), or monthly installments until the loan is fully repaid if it is a revolving card.

With your credit card, you can spend more than you currently have in your current account: this is possible within a certain limit. The maximum amount that the bank makes available to you every month overall, both for in-store and online purchases and withdrawals, is called the ceiling. Here, then, how payments by credit card work: in a different way from the debit card (ATM) with which, instead, the sum withdrawn or spent is immediately deducted from your current account, and the operation is refused if there is none. it is enough money. 

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