Why I'm Sticking with My Alfa-Bank Credit Card, Despite the High Interest Rate

My Alfa-Bank Credit Card Experience

I live in a small town with no Alfa-Bank branch, and I only got my credit card after a bunch of telemarketing calls. When I needed cash for some dental work, I decided to give it a shot.

I picked up my card at an MTS office near my mom's place in Ufa. The whole process took way longer than I expected, and it wasn't until the card was processed that I found out my credit limit - a whopping 15,000 rubles.

I was expecting to use my credit card for some big purchases, but 15,000 rubles isn't exactly a lot of money. The customer service rep told me that another guy had been in the same situation and ended up closing his account, wasting even more time.

However, the rep also mentioned that the credit limit would increase quickly if I used the card regularly, rather than just leaving it idle. I decided not to close the account, and sure enough, the credit limit did increase to 45,000 rubles - and then stopped there.

I opened this card mainly for the ability to withdraw cash without any interest at any ATM worldwide. That's why I wasn't too fazed by the lack of Alfa-Bank branches in my town.

I never got to use that feature, though. I didn't need to at first, and then I received a notification that cash withdrawals were no longer recommended, with a minimum commission of 900 rubles.

It's worth noting that I've never been a fan of MTS stores, so the 1,000-ruble bonus for shopping there isn't really a draw for me.

Since there are no ATMs in my town, I've been topping up my card from Sberbank, which comes with a small fee.

One thing working in my favor is the interest-free period. Unlike Sberbank, where the interest-free period starts and ends with each purchase, Alfa-Bank's interest-free period begins and ends with the first purchase. That's a crucial difference.

The interest rates, however, are a major drawback. Purchases come with a whopping 39.99% per annum, while cash withdrawals and transfers are even more expensive at 49.99% per annum.

Interest Rates

Purchases: 39.99% per annum Cash withdrawals and transfers: 49.99% per annum

For comparison, Sberbank has the following interest rates:

Interest rates

During the interest-free period

0% per annum

After the interest-free period

19% per annum

If you default

36% per annum

Card maintenance

First year

Free

Second and subsequent years

750 rub.

So, Sberbank's interest rate is even lower, even with the penalty for defaulting.

And, to make matters worse, Alfa-Bank's card maintenance fee is twice as high - 1,500 rubles. It's deducted from the second year onwards.

Oh, and did I mention that you can pay off credit cards from other banks without any commission? Literally, you can double the interest rate. I'm not sure who that's intended for, but I'm sure there are some people out there who'd be interested.

So, why haven't I closed this 'profitable' card yet? Well, there's a small voice in the back of my head that says, 'What if I need cash urgently?' It's a pretty irrational thought, but it's been on my mind lately.

Would I recommend this credit card? Not really. The only 'plus' is the interest-free period, and the interest rate is simply draconian.

Overall, I'd say that Alfa-Bank's credit card is a mixed bag. While it has some redeeming qualities, such as the interest-free period, the high interest rates and card maintenance fees make it a less-than-ideal choice.

Unless you're someone who needs cash urgently and can't afford to pay off their balance in full each month, I'd recommend looking elsewhere for a credit card.

Rating: 2/5 stars.