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Tell me who you are and I’ll tell you what your credit card is

Author: Nati Aharoni
On bank credit cards, non-bank credit cards and debit cards

Credit cards are a means of payment that allows simple and convenient handling of our money. However, it is very important to know that this ease comes at a financial price. To understand the price and evaluate its feasibility, it is important to understand the differences between the different types of cards. This understanding will help you choose a card that fits your pocket and, no less important, your character.

Debit cards

A debit card is a debit card that serves as a substitute for a cash transaction. It charges the customer’s current account immediately upon execution of the transaction, subject to the balance in the account and the credit limit, and credits the merchant’s bank account immediately (within a maximum of 3 business days). For those who have trouble controlling their expenses, this is a great way to manage wisely. A bit like walking with an ATM in your pocket.

Bank credit cards

Credit cards are alternative payment methods for cash or checks (link to check guide). They enable purchases at businesses both directly and by telephone or online transaction. Transactions can be made in a one-time payment or in several installments. The payment will be deducted from the bank account on the upcoming billing date agreed upon with the bank or the card issuer.


Credit cards have a cost and are charged monthly for that month’s charges. Some clubs grant an exemption from this cost, usually for a certain period. Sometimes a discount is also given to certain populations such as soldiers, students and more. It is advisable to ask for a discount even if you do not belong to any club. At most, they are answered in the negative.

Non-bank credit cards

With non-bank credit cards, the credit or facility is provided by the credit company and not by the bank. Many entities issue credit cards when they require membership in their customer club, such as Shufersal, Superpharm and more.

About five days before the billing date, the bank receives data on the billing amounts that will be deducted from the customer’s current account.

These cardholders are given loans very easily, but these are very expensive loans. In addition to the high interest rate, these loans must pay for their early repayment and are subject to paying a penalty.

Revolving credit inside the credit card

This is a credit card in which the credit limit available to the cardholder is predetermined. If the customer chooses not to repay the full amount, the outstanding balance bears interest and will be “rolled over” to the next month, at which time the cardholder can again choose to repay part or all of the amount. For deferring repayment to the coming months, very high interest is paid.

For example, if the total purchases were NIS 5,000 and the customer requested to charge his bank account in the amount of NIS 3,000, the balance, NIS 2,000, will be transferred to the next month and interest will be paid on it.

Note: If the customer does not inform the credit card company of the amount to charge his account each month, the credit card company charges him a minimum amount (around NIS 200-600) and the rest of the charge, usually a substantial amount, it transfers to the next month at high interest, thus accumulating a balance of liabilities on the card that the customer is not always aware of.

Credit card companies know that many customers, unwittingly and out of forgetfulness, will not announce in time how much they wish to charge them per month, and thus innocent customers pay high interest on current expenses that they could have paid without interest at all. The revolving credit cards are: More by Isracard, Multi by Leumi Card and Cal Choice by Cal (formerly Active).

As you can see, each card has its advantages and disadvantages, and in order to decide which one is right for you, you need to know yourself, your financial conduct, your strengths and weaknesses. In any case, it’s a good idea to keep your finger on the pulse, review your credit charges every month and make sure you don’t pay unnecessary interest and penalties due to inattention. Acting in charge will allow you to feel: Credit – and I’m good.

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