Almost everyone over the age of 18 (or 21) has or wants a credit card these days and they are accepted in almost every establishment. There are three main types of credit card in use 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 by 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 sponsored mainly by the banks. The bank defines the spending limits, which in bank parlance, is known as the credit line and each offers different terms and conditions. Banks offer a selection 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 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 variance 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 type 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 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 charged on all the credit cards you are interested in. While the rate will not stay fixed for ever, it's always best for novices to apply for the one charging the least interest.
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 are applied.
You should decide which spending limit is most suitable for someone of your income level. Furthermore, the fewer credit cards you use, the better placed you will be to understand 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 requirements.
You will do yourself a favour by familiarizing yourself with the following terms: 1] Annual Percentage Rate: this is the measure of 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 the issuer gives you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 29971
The second major sort of credit card is the bank card such as Master Cards, Visa, GM, and Ford cards sponsored mainly by the banks. The bank defines the spending limits, which in bank parlance, is known as the credit line and each offers different terms and conditions. Banks offer a selection 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 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 variance 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 type 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 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 charged on all the credit cards you are interested in. While the rate will not stay fixed for ever, it's always best for novices to apply for the one charging the least interest.
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 are applied.
You should decide which spending limit is most suitable for someone of your income level. Furthermore, the fewer credit cards you use, the better placed you will be to understand 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 requirements.
You will do yourself a favour by familiarizing yourself with the following terms: 1] Annual Percentage Rate: this is the measure of 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 the issuer gives you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 29971
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If you are thinking onchanging or applying for a Credit Card, have a look at the free advice on our website on using Credit Cards wisely.
