Credit card is one of the great facilities of modernity when talking about consumption due to its series of advantages. Even more so if it is a credit card with no annuity.
Traditionally, the cards are linked to large banks or financial companies and a large part of these credit card plans have annuity or other contractual obligations.
Today, however, a new movement in the market has brought new credit card options without fees. But are they reliable? In our guide we will bring you the information you need to know how this model works. So you can choose wisely.
FT Finance and the non-annuity credit card
The new wave of no-charge credit card has gained popularity with so-called “FT Finances”. This is a term designed to define technology companies (startups, for the most part) that operate in the financial sector.
Or they are also used to identify innovations that use new technologies to provide financial services. And these services are quite varied.
There are companies today that propose to change the way we do the transfer of money and payments, the financial management of companies or personnel; the sale of insurance, the operation of crypto-coins etc.
BGBank, for example, is a Brazilian FT Finance that has gained space in recent years. Primarily, on account of non-annuity credit cards, with the bonus of the user controlling the payments made directly by the cell phone. There is also the BGBank Platinum for fans of the purple card.
How Does The No Fee Credit Card Work?
The no charge credit card works just like any other. There is a credit limit, which can be adjusted periodically by the customer. Famous flags are used (for example Visa and Mastercard) and you can purchase purchases and some even have loyalty or punctuation programs.Learn how to choose the best credit card for you.
One of the factors that allows these companies to offer the credit card without annuity is the very advancement of the technology. The annuity serves, for the most part, to cover operating costs that banks traditionally carry out.
This includes service in an agency, maintenance of a 24-hour call center by telephone, among others. Therefore, the customer when hiring a service without the annuity should keep in mind that these types of service will not be performed in the traditional way.
How to Hire a Credit Card Without Annuity
Most of the companies that offer the card without fees centralize the orders through registration on the internet. Another option is through company applications that can be downloaded on the person’s cell phone.
Another concern that FT Finances have in this model is to give up the complexity. Since there are no physical call centers for charge card no fee, the company communication needs to be quite clear and objective about the services offered.
That way, you can find everything you need on the company website or even step-by-step during the application installation. Although it is simpler to register, all potential users undergo a credit assessment and analysis.
With this, there are chances of the credit card being denied and getting on a waiting list for approval.
But is it really that there are no fees?
Like every credit card, the secret to not being surprised with charges is in the payment of invoices. The services of account maintenance and service, as we mentioned before, enter into what would be the collection of the annuity.
However, this does not mean that the credit card if rate does not cover interest on the customer’s past due invoices.
Every purchase made with a credit card generates, at the end of a given period, an invoice with the sum of all purchases. Usually this invoice is monthly and has a payment term that – many times – is chosen by the cardholder.
If the customer delays the payment of the invoice, the company charges the interest due as any other bank. In Brazil, interest rates for credit cards are, on average, above 200% per year.
We have already posted a post on our blog that explains what each of the interest charged on the credit card means.
Therefore, pay attention to the payment term of the invoices. Also remember to leave the portion within your budget. The ideal to keep the account in the blue is to have installments that do not exceed 30% of all the monthly income.
A good tip is to adjust the credit limit according to the need not to fall into the temptation to spend more than planned.
One of the advantages of no charge credit card are the applications. They allow the management of the installments and the credit limit directly by the consumer. This way it is easier to use the credit card without incurring debt.
Credit Card Point Programs
Other services that always walk close to credit cards are the points and benefits programs. Through partnerships with other companies, card suppliers offer a number of advantages for cardholders.
These include cheaper tickets to shows and shows in general, air tickets (with mileage programs) and discounts on products or services from these partners.
Often, to participate in these advantages clubs, the customer needs to pay. The charge can be monthly or annual, depending on the company. It is worth evaluating the amount of benefits offered, in comparison with the amount destined and its periodicity.
In some cases the supply of savings can be illusory, as it depends on the volume of purchases you actually make.
Options on the market
Driven by FT Finances, the big banks also began offering credit card options without annuity. As is the case of Digio, a company that brings together banks BC Bank and BL Bank to offer the service fully digital, with the support of the mobile application.
Also in the last years, BC Bank has launched Next, a fully digital bank. In addition to offering the credit card without annuity, it also has a robust application that even allows you to organize kitties between your contacts.
One of the most recent of these models, launched in November 2017, is CC Credit, which will be offered by Itaú and promises to bring great discounts on e-commerces, in addition to the digital appeal of its competitors.
Last and most famous credit card without fee, is the already cited BGBank. The Brazilian FT Finance proposes to be uncomplicated and says that the only charge made in its services is to participate in its points program, called Rewards. Get to know how BGBank and NC Bank work.