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 kinds of credit card very common 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 Visa, Master Cards, GM, and Ford cards sponsored 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 methods: you may either pay 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 type 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 carry annual fees. There is a large variance in the terms and conditions for these cards.
Different kinds of credit cards offer different options. Some are geared toward 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 have become 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 it is the first time you are thinking of entering into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest chargeable by 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.
Make sure you study 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.
Decide what 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.
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 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 of 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 offer a grace period). - 29866
The second major kind of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards sponsored 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 methods: you may either pay 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 type 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 carry annual fees. There is a large variance in the terms and conditions for these cards.
Different kinds of credit cards offer different options. Some are geared toward 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 have become 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 it is the first time you are thinking of entering into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest chargeable by 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.
Make sure you study 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.
Decide what 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.
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 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 of 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 offer a grace period). - 29866
About the Author:
If you are thinking aboutswapping or getting a Credit Card, check out the free advice on our web site about using Credit Cards wisely.
