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 taken in almost every establishment. There are three major kinds of credit card common in America. The first major sort 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 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 mostly by the banks. The bank defines the spending limit, which in bank speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment means: you can either repay the balance in full with no interest charges 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 have annual fees. There is a wide variance in the terms and conditions for these cards.
Different kinds 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 type of credit card fits your needs, you should review a few options.
How to Choose your Credit Card.
Credit cards are a part of everyday life for most people living in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if it 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 charged on all the credit cards you are interested in. While the rate may not remain fixed indefinitely, it's always better for beginners to go for the one charging the least interest.
Make sure you read the small print carefully, especially with regard to the other charges that can 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 track your spending pattern.
You should compare the services and other features such as the cash back incentives, or warranties, rebates and such like and check whether the card is accepted widely enough to suit 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). - 21396
The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed mostly by the banks. The bank defines the spending limit, which in bank speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment means: you can either repay the balance in full with no interest charges 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 have annual fees. There is a wide variance in the terms and conditions for these cards.
Different kinds 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 type of credit card fits your needs, you should review a few options.
How to Choose your Credit Card.
Credit cards are a part of everyday life for most people living in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if it 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 charged on all the credit cards you are interested in. While the rate may not remain fixed indefinitely, it's always better for beginners to go for the one charging the least interest.
Make sure you read the small print carefully, especially with regard to the other charges that can 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 track your spending pattern.
You should compare the services and other features such as the cash back incentives, or warranties, rebates and such like and check whether the card is accepted widely enough to suit 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). - 21396
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If you are considering swapping or applying for a Credit Card, check out the free advice on our web site about using Credit Cards wisely.
posted by X - Men @ 2:15 AM
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