Credit Card - The most effective and secure financial support

People frequently struggle to prepare loan documentation and spend a lot of time waiting when they are faced with urgent financial necessities or sudden cash requirements. As a result, a lot of people opt for unofficial loans without taking risks into account.

Grasping this market demand, banks and financial companies have launched credit card products in order to offer secure, effective, and timely financial support. However, many people are still hesitant because of not being understand how credit card works. “Is a credit card a form of credit loan? How can I get a credit card?” Let's explore with Shinhan Finance!

Is a credit card a form of credit loan?

By definition of a loan, any money that you pay interest on is called a credit loan. However, a credit card is not a credit loan because the State Bank has clearly regulated the issuance and use of credit cards as not being a form of lending.

With a credit limit granted on a credit card, interest is only charged when you use your credit card to make purchases and not make on-time and in full payments. At this point, the credit card is currently being considered a different type of lending services, other than credit loan.

How to own a credit card and choose suitable benefits

Normally, the process of submitting a credit card application will include documents such as application forms, personal identification, financial statements, proof of residence, current employment... After that, the bank or financial company will review and verify the information before deciding to issue the card and determine the credit limit.

Understanding the practical needs of the market, along with the desire to provide effective financial support and new experiences for customers, Shinhan Finance offers the benefit of THE FIRST credit card for customers who borrow secured loans at Shinhan Finance.

With the compact THE FIRST card in their wallet, customers can withdraw up to 100% of the credit limit and enjoy an interest-free "buy now, pay later" period of up to 45 days. Therefore, customers do not need to submit additional loan applications or wait each time they need to make a payment or need cash. Especially in emergency situations, the THE FIRST credit card will become a safe and efficient source of financial support because it can be flexibly used for transactions at stores and cash withdrawals at any ATM across the country.

To learn more about the program “Apply for a loan to receive Shinhan Finance's THE FIRST card immediately”.

In particular, customers will receive all the incentives that come with the credit card service, including: Free annual fee for the first year from the issuance date; 0% installment when convert purchase transactions into installments; and regular discounts which up to 50%-off when using the service at The First credit card is valid-to-use- location. Let's find out more at THE FIRST credit card promotions.