Types of Credit Cards and Choosing One
Almost everyone over the age of consent (18 or 21) has or wants a credit card nowadays and they are accepted in almost every establishment. There are three major kinds of credit card in use in America. The first major type of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be repaid completely at the end of the month and are generous on spending limits.
The second major kind of credit card is the bank card such as Master Cards, Visa, GM, and Ford cards sponsored mostly by the banks. The bank defines the spending limits, which in bank parlance, is known as the credit line and each offers different terms and conditions. Banks offer a selection of payment methods: either pay the balance in full with no interest or pay the minimum or some part of the balance with a finance charge.
The other major sort of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those issued by gas companies, which are usually known as fuel cards, are only taken in some countries. They hardly ever carry annual charges. There is a large disparity in the terms and conditions for these cards.
The various kinds of credit cards present different opportunities. Some are designed for individual consumers, while others are designed in ways that work best for small business needs. To know what type of credit card fits your needs, you should look over a few options.
How to Choose a Credit Card.
Credit cards have become a part of life for most people living in the western countries. It's becoming increasingly impossible to avoid them, especially for business men. So, if it is the first time you are thinking to enter into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest chargeable on all the credit cards for which you are eligible. While the rate will not remain fixed indefinitely, it's always advisable for first timers to go for the one charging the lowest rates.
Make sure you study the small print carefully, especially on the other charges that can be made, like late-payment fees, annual fees, and whether there is a grace period.
Decide which spending limit is most appropriate for a person of your income. Also the fewer credit cards you have, the better placed you are to understand your spending.
Compare the services and other features such as the cash back incentives, or warranties, rebates and such like. Check whether the card is widely enough accepted to cater for your needs.
You will do yourself a favour by familiarizing yourself with the following terms: 1] Annual Percentage Rate: this is the measure of the yearly cost of the credit. 2] Finance Charges: these are the total charges involving the transaction. 3] Period of Grace: This is the period the issuer gives you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 21392
The second major kind of credit card is the bank card such as Master Cards, Visa, GM, and Ford cards sponsored mostly by the banks. The bank defines the spending limits, which in bank parlance, is known as the credit line and each offers different terms and conditions. Banks offer a selection of payment methods: either pay the balance in full with no interest or pay the minimum or some part of the balance with a finance charge.
The other major sort of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those issued by gas companies, which are usually known as fuel cards, are only taken in some countries. They hardly ever carry annual charges. There is a large disparity in the terms and conditions for these cards.
The various kinds of credit cards present different opportunities. Some are designed for individual consumers, while others are designed in ways that work best for small business needs. To know what type of credit card fits your needs, you should look over a few options.
How to Choose a Credit Card.
Credit cards have become a part of life for most people living in the western countries. It's becoming increasingly impossible to avoid them, especially for business men. So, if it is the first time you are thinking to enter into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest chargeable on all the credit cards for which you are eligible. While the rate will not remain fixed indefinitely, it's always advisable for first timers to go for the one charging the lowest rates.
Make sure you study the small print carefully, especially on the other charges that can be made, like late-payment fees, annual fees, and whether there is a grace period.
Decide which spending limit is most appropriate for a person of your income. Also the fewer credit cards you have, the better placed you are to understand your spending.
Compare the services and other features such as the cash back incentives, or warranties, rebates and such like. Check whether the card is widely enough accepted to cater for your needs.
You will do yourself a favour by familiarizing yourself with the following terms: 1] Annual Percentage Rate: this is the measure of the yearly cost of the credit. 2] Finance Charges: these are the total charges involving the transaction. 3] Period of Grace: This is the period the issuer gives you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 21392
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If you are thinking onswapping or getting a Credit Card, have a look at the free advice on our web site on using Credit Cards wisely.
posted by X - Men @ 2:48 AM
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