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 accepted in almost every establishment. There are three main kinds of credit card common in America. The first main type of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be repaid completely by the end of the month and are generous on spending limits.
The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed mainly by the banks. The bank defines the spending limit, which in bank parlance, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment means: you may either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with an interest.
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 from gas companies, widely known as fuel cards, are only accepted in specific countries. They usually do not have annual charges. There is a large variance in the terms and conditions for these cards.
Different types 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 Select your 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 charged by all the credit cards you are interested in. While the rate may not stay fixed for ever, it's always better for novices to apply for the one charging the lowest interest rates.
Make sure you study the fine 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 what spending limit is most suitable for a person of your income. Furthermore, the fewer credit cards you use, the better placed you will be to understand your spending pattern.
You ought to compare the services such as the cash back incentives, guarantees, rebates and such like and check whether the card is taken broadly enough to fit in with your needs.
You will help yourself by acquainting yourself with the following terms: 1] Annual Percentage Rate: this is 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 of time the card issuer gives you before they commence charging you interest on new purchases. (NB: not all credit card issuers give a grace period). - 2368
The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed mainly by the banks. The bank defines the spending limit, which in bank parlance, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment means: you may either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with an interest.
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 from gas companies, widely known as fuel cards, are only accepted in specific countries. They usually do not have annual charges. There is a large variance in the terms and conditions for these cards.
Different types 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 Select your 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 charged by all the credit cards you are interested in. While the rate may not stay fixed for ever, it's always better for novices to apply for the one charging the lowest interest rates.
Make sure you study the fine 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 what spending limit is most suitable for a person of your income. Furthermore, the fewer credit cards you use, the better placed you will be to understand your spending pattern.
You ought to compare the services such as the cash back incentives, guarantees, rebates and such like and check whether the card is taken broadly enough to fit in with your needs.
You will help yourself by acquainting yourself with the following terms: 1] Annual Percentage Rate: this is 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 of time the card issuer gives you before they commence charging you interest on new purchases. (NB: not all credit card issuers give a grace period). - 2368
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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 Frank Potter at 1:58 AM
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