Credit card
A credit card is a payment card with a credit limit set by the card issuer (a bank). This limit can be used at any given time and in any given place. A credit card is a very convenient tool used in non-cash transactions. In a shop, instead of in cash or by a regular payment card, you pay by a credit card. Your contract with the bank specifies the time you have to settle the account without interest being charged on the amount spent. This is a so-called grace period and if you settle all debt within this period, the bank will not charge interest and you will again have a full credit limit available on the card. It is very important to stipulate that you want to get a monthly credit card statement from your bank or internet access to your credit card through the bank’s online banking service. From the monthly statement you will know what transactions have been made from the day of the previous statement, what is the total due amount, what interest has been charged on it, and what is the minimum amount that has to be paid to use the card further. You should verify every statement and compare it with payment proofs from payment terminals (always collect payment proofs!). If you notice that something is wrong, you should complain at the bank. You should remember that a credit card has a higher interest rate than for example an overdraft on a current account, so you should settle credit card debt first. It is best is to pay all credit card debt straightaway, because in the long term, if you pay only the minimum amount, it will significantly extend your debt repayment period and the costs of your card will increase.
Very often, banks issue credit cards as an additional product, required while signing a contract on, for example a mortgage. Remember that this entails a monthly charge for the card and you should carefully check what conditions have to be met to avoid this charge. Usually, it is a certain minimum value of transactions made with the credit card each month. You should also see how much it costs to issue a card - negotiate so that it is free of charge.
It should be remembered that a credit card is still money (but in a plastic form) which should be used reasonably and with moderation. It is not a gift from the bank and at one point the debt will have to be repaid. The safety of a credit card is very important – you should never allow the use of your card not in your presence. The best would be to never let it out of sight so that no-one can copy its number or copy the card itself.
In many cases credit card payments are necessary, e.g. while buying plane tickets online. It is also a very safe method of doing online shopping, especially while buying tourist services. More on the rules of tourist services complaints.
A credit card is a very convenient payment tool for people who are disciplined and analyse and settle their obligations on a regular basis. Foreigners can also get a credit card in a Polish bank if they meet the requirements imposed by the bank. Let’s have a look at banks that issue credit cards to foreigners.
In most banks a foreigner has to present:
- a passport,
- a residence card,
- a statement on income
- in case of an employment contract – for the period of the previous three months
- in case of a specific work contract – contracts from the previous 12 months, so the period of employment has to be longer than 12 months.
Requirements of the above mentioned banks differ here. The most favourable would be the ones of Millennium and PKO BP. The former will require a residence card for a fixed period (the minimum period is not mentioned). Bank PKO BP has similar requirements: at least a residence permit with a PESEL number on it, and in case of a foreigner from the EU, a certificate of residence registration and a document confirming that a PESEL number was granted. Pekao S.A. bank also requires a residence card, however, it will be easier to get a credit card if you already have an account in this bank. BZWBK bank also offers credit cards to foreigners but requires a residence permit for the period of two years.
Signing a contract on a credit card in case of a foreigner may require him to present additional documents and each case is considered separately. Remember however, that banks want to have the biggest possible number of customers and that credit cards are one of their most profitable products. To sum up, banks want a foreigner to present a proper residence document and – ideally - a steady source of income in Poland.