Sorts of Credit Cards and Selecting One
Almost everyone over the age of consent (18 or 21) has or wants a credit card nowadays and they are taken in almost every establishment. There are three main types of credit card common in America. The first major kind of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be paid completely at the end of the month and are liberal on spending limits.
The second major sort 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 choice 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 kind of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and the ones from gas companies, which are known as fuel cards, are only accepted in specific countries. They usually do not carry annual fees. There is a wide variance in the terms and conditions for these cards.
Different sorts of credit cards offer different options. Some are geared toward individual consumers, while others are set up in ways that work best for small business needs. To know what type of credit card fits your needs, you should review 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 this is the first time you are seeking to enter into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest charged on all the credit cards you are interested in. While the rate may not stay fixed for ever, it's always best for novices to apply for the one charging the lowest interest rates.
Make sure you study the small print carefully, especially with regard to the other charges that can be made, like late-payment fees, annual fees, and whether there is a grace period.
You should decide which spending limit is most suitable for someone on your income level. Furthermore, the fewer credit cards you have, the better placed you will be to track your spending pattern.
Compare the services and other features such as the cash back incentives, or warranties, rebates and the 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 annual 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 allows you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 21392
The second major sort 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 choice 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 kind of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and the ones from gas companies, which are known as fuel cards, are only accepted in specific countries. They usually do not carry annual fees. There is a wide variance in the terms and conditions for these cards.
Different sorts of credit cards offer different options. Some are geared toward individual consumers, while others are set up in ways that work best for small business needs. To know what type of credit card fits your needs, you should review 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 this is the first time you are seeking to enter into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest charged on all the credit cards you are interested in. While the rate may not stay fixed for ever, it's always best for novices to apply for the one charging the lowest interest rates.
Make sure you study the small print carefully, especially with regard to the other charges that can be made, like late-payment fees, annual fees, and whether there is a grace period.
You should decide which spending limit is most suitable for someone on your income level. Furthermore, the fewer credit cards you have, the better placed you will be to track your spending pattern.
Compare the services and other features such as the cash back incentives, or warranties, rebates and the 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 annual 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 allows 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 onchanging or applying for a Credit Card, check out the free advice on our website on using Credit Cards wisely.
posted by X - Men @ 4:22 AM
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