Benefits of Credit Cards in Budapest: Increased Usage and Smart Practices Among Hungarians.

Published: December 18 2023

Credit card usage in Budapest has been on the rise, with an increasing number of Hungarians adopting smart practices when it comes to managing their credit card debt. This article explores the benefits of credit cards in Budapest and highlights the growing trend of responsible credit card usage among locals.

According to data from the National Bank of Hungary, the number of credit cards with a credit line reached 1.109 million in the second quarter of 2023, accounting for 11.1% of all cards issued in the country. The data also reveals that Hungarian credit card users are becoming more active, with the number of payment transactions increasing by 8% compared to the previous year. Both domestic and international transactions have experienced growth, with foreign card usage growing at a higher rate. This can be attributed to the benefits that premium credit cards offer, such as travel insurance and the ability to avoid cash deposits when renting a car.

Hungarian credit card holders are demonstrating a greater level of financial awareness and responsibility. While the total amount of interest-free credit increased by 19% compared to the same period in 2022, the amount of interest-bearing debt only rose by slightly over 9.2%. This indicates that more individuals understand the importance of repaying their credit card balances within the interest-free period to avoid high annual interest rates. Late payments may also incur additional fees and restrictions on card usage.

To make the most out of credit cards in Budapest, it is advisable not to use them for cash withdrawals due to higher fees and interest charges. Additionally, transferring funds from a credit card is not recommended as it often incurs higher transaction fees. For larger amounts that cannot be paid back within the interest-free period, it is wise to explore alternative financing options.

Banks in Budapest offer various types of cashback rewards and incentives to attract customers. These include regular cashback percentages as well as special promotional offers that provide higher cashback rates. Some banks even offer one-time bonuses for signing up for a credit card and meeting certain conditions. By taking advantage of these rewards, credit card users in Budapest can enjoy additional financial benefits.

In conclusion, credit card usage in Budapest is on the rise, with more Hungarians adopting smart practices and responsible debt management strategies. By understanding the benefits and potential risks associated with credit cards, individuals can make informed decisions and maximize the advantages offered by credit card providers in Budapest.

How many credit cards with credit limits were in circulation in Hungary in the second quarter of 2023? According to data from the Magyar Nemzeti Bank, there were 1.109 million credit cards with credit limits in circulation in Hungary in the second quarter of 2023.

What percentage of the total number of cards issued in Hungary have credit limits? Credit cards with credit limits account for 11.1% of all cards issued in Hungary.

How has the number of payment transactions using credit cards in Hungary changed compared to the previous year? According to data from the Magyar Nemzeti Bank, the number of payment transactions using credit cards in Hungary increased by 8% in the second quarter of 2023 compared to the previous year, reaching over 36.16 million transactions.

What is the growth rate of foreign card usage compared to domestic transactions? The usage of credit cards for foreign transactions in Hungary grew above average, by approximately 14.6%, while domestic transactions increased by 7.4%.

How has the value of credit card shopping transactions in Hungary changed since the second quarter of 2022? The value of credit card shopping transactions in Hungary has increased by 18% since the second quarter of 2022, with a total turnover of 346.8 billion Hungarian forints. On average, 312,700 Hungarian forints of turnover was recorded per card in the second quarter of 2023.

How does the increased awareness of credit card users in Hungary reflect in their credit card usage? Credit card users in Hungary are becoming more conscious in their use of credit cards. While the amount of interest-free claims has significantly increased over the past year, the total amount of interest-bearing claims has decreased.

What is the recommended payment strategy to avoid interest charges on credit card debts in Hungary? It is advised to repay credit card expenses within 15 days after the billing date to benefit from interest-free usage of the bank's money. After this period, the outstanding debt may be subject to an annual percentage rate of 40-50%. Delayed payments may also incur late fees and may result in restrictions on credit card usage.

What are some practices that should be avoided when using a credit card in Hungary? It is not recommended to use a credit card for cash withdrawals as the fees for this service are significantly higher than for regular debit cards. Cash withdrawals with a credit card always involve interest payment obligations, and the free monthly cash withdrawal limit of 150,000 Hungarian forints does not apply to credit cards. It is also not recommended to make transfers from a credit card as the transaction fees are higher in this case.

What should someone do if they need a large amount of money that cannot be repaid within the interest-free period provided by a credit card? If someone needs a large amount of money that cannot be repaid within the interest-free period provided by a credit card, it is advisable to seek alternative financing options.

What are some ways to benefit from credit card rewards in Hungary? Banks in Hungary offer various types of credit card rewards to customers. This can include cashback programs where a certain percentage of the value of purchases is credited back to the account. In addition to regular rewards, banks also advertise seasonal promotions with higher percentages of rewards. Another attractive feature can be the initial credit after signing a contract, which can be several tens of thousands of Hungarian forints if the bank's conditions are met.

Note: This version of the FAQ article does not include information about the benefits of credit cards in Budapest or Hungary in the title and extract of the source article provided.