Types of Credit Cards and Choosing One
Almost everyone over the age of consent has or wants a credit card these days and they are accepted almost everywhere. There are three main types of credit card very common in America. The first main kind 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 sort of credit card is the bank card such as Master Cards, Visa, GM, and Ford cards distributed mostly by the banks. The bank defines the spending limits, which in bank speak, 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 those from gas companies, widely known as fuel cards, are only taken in specific countries. They usually do not have annual fees. There is a wide disparity in the terms and conditions for these cards.
Different sorts of credit cards offer different options. Some are designed for individual consumers, while others are designed in ways that work best for small business needs. To know what kind of credit card fits your needs, you should review a few options.
How to Select a Credit Card.
Credit cards are a part of everyday 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 about to enter into the realm of credit cards, here are some of the basics you ought to look out for.
First, compare the interest chargeable on all the credit cards for which you are eligible. While the rate may not remain fixed for ever, it's always advisable for first timers to go for the one charging the lowest rates.
Read the small print carefully, especially on the other charges that may be applied, like late-payment fees, annual fees, and whether there is a grace period which is normally given before the finance charges kick in.
You should decide what spending limit is most suitable for someone of your income level. Furthermore, the fewer credit cards you have, 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 the like and check whether the card is accepted broadly enough to fit in with your requirements.
You should acquaint yourself with the following terms: 1] Annual Percentage Rate: this is 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 of time the card issuer gives you before they begin charging you interest on your purchases. (Not all credit card issuers allow a grace period). - 21396
The second major sort of credit card is the bank card such as Master Cards, Visa, GM, and Ford cards distributed mostly by the banks. The bank defines the spending limits, which in bank speak, 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 those from gas companies, widely known as fuel cards, are only taken in specific countries. They usually do not have annual fees. There is a wide disparity in the terms and conditions for these cards.
Different sorts of credit cards offer different options. Some are designed for individual consumers, while others are designed in ways that work best for small business needs. To know what kind of credit card fits your needs, you should review a few options.
How to Select a Credit Card.
Credit cards are a part of everyday 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 about to enter into the realm of credit cards, here are some of the basics you ought to look out for.
First, compare the interest chargeable on all the credit cards for which you are eligible. While the rate may not remain fixed for ever, it's always advisable for first timers to go for the one charging the lowest rates.
Read the small print carefully, especially on the other charges that may be applied, like late-payment fees, annual fees, and whether there is a grace period which is normally given before the finance charges kick in.
You should decide what spending limit is most suitable for someone of your income level. Furthermore, the fewer credit cards you have, 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 the like and check whether the card is accepted broadly enough to fit in with your requirements.
You should acquaint yourself with the following terms: 1] Annual Percentage Rate: this is 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 of time the card issuer gives you before they begin charging you interest on your purchases. (Not all credit card issuers allow a grace period). - 21396
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posted by X - Men @ 2:54 AM
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