Credit cards in Armenia: Overview and Recommendations

What is a credit card and what is it used for?

A credit card is a bank card on which credit funds are allocated within your credit limit.

A credit card is used for making purchases when you don't have enough personal funds. The bank lends you the money, and you are obligated to repay it with interest within an agreed-upon period.

What should you pay attention to when choosing a credit card?

Banks in Armenia offer credit cards with different grace periods and interest rates. The interest rate is determined during the application process and depends on a variety of factors, including your credit history, credit score, income level, and more.

When choosing a credit card in Armenia, pay attention to the terms of the grace period. The grace period is the time during which no interest is charged on the card. Typically, banks in Armenia offer credit cards with a grace period ranging from 10 to 45 days.

Some banks in Armenia also allow you to open a credit card without providing proof of income. However, be aware that in this case, the credit limit and repayment terms may be more limited.

When selecting a bank to issue a credit card, you should also consider the cost of card issuance and its annual maintenance fees, as well as the presence of additional fees or bonus programs.

Another important factor is the commission for cash withdrawals from the credit card, as well as the functionality of the bank’s mobile app, since banks in Armenia set their own fees.

What are the requirements for borrowers in Armenia?

To apply for a credit card in Armenia, you need to have a document confirming your income source. This could be an employment contract or bank statements from the past few months. Some banks in Armenia offer credit cards without income documentation, but such cards usually have more limited features and less favorable conditions.

What is a credit history, and why is it important?

A credit history is a collection of data reflecting information about your past and current credit obligations, as well as how timely you fulfilled them. The bank uses this data to assess your credit risk and ability to repay debts on time. Your credit score can be negatively affected by late payments on loans. If you haven’t taken out loans before, a credit card can be a good tool for building a positive credit history. The key is to make at least the minimum payments on time, and ideally, fully repay the debt within the grace period.

How to properly close a credit card?

To close a credit card, you need to contact the bank. Make sure there is no outstanding debt on the card and pay it off if necessary. Then, submit a request to close the account and disconnect any associated services. If there were any personal funds on the card, make sure to withdraw them. You should also remove the card from all online services such as e-commerce sites and subscriptions.

How to apply for a credit card in Armenia?

A credit card in Armenia can be applied for by visiting the bank branch. You can also submit an application via the bank's website or mobile app. You will need to present an identification document. Some banks may also require a social security card and other additional documents.