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 main 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 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 choice of payment means: you may either pay the balance in full with no interest charges or pay the minimum or some part of the balance with an interest.
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 charges. There is a wide disparity in the terms and conditions for these cards.
Different types 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 sort of credit card fits your needs, you should review a few options.
How to Choose your Credit Card.
Credit cards have become a part of everyday life for most people who live 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 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 indefinitely, 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 regarding 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.
Decide what spending limit is most appropriate for a person of your income. Furthermore, the fewer credit cards you use, 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 such like. Check whether the card is widely enough accepted to cater for your requirements.
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 of the transaction. 3] Period of Grace: This is the length of time the card issuer gives you before they commence charging you interest on new purchases. (NB: not all credit card issuers allow a grace period).
If you are considering changing or applying for a Credit Card, check out the free advice on our website about using Credit Cards wisely.. Also published at Credit Cards And Choosing One.
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