Almost everyone over the age of consent has or wants a credit card these days and they are taken in almost every establishment. There are three main kinds of credit card in use in America. The first main sort of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be paid in full by 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 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 methods: you can either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with an interest.
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 have annual fees. There is a wide variance in the terms and conditions for these cards.
Different types of credit cards offer different options. Some are geared toward individual consumers, while others are set up in ways that work best for small business needs. To know what sort of credit card fits your requirements, you should look over a few options.
How to Select a Credit Card.
Credit cards have become a part of life for most people living in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if this is the first time you are thinking to enter into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest charged by 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 lowest rates.
Make sure you study the small print carefully, especially on 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 understand 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 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 of 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). - 29970
The second major kind of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards sponsored 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 methods: you can either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with an interest.
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 have annual fees. There is a wide variance in the terms and conditions for these cards.
Different types of credit cards offer different options. Some are geared toward individual consumers, while others are set up in ways that work best for small business needs. To know what sort of credit card fits your requirements, you should look over a few options.
How to Select a Credit Card.
Credit cards have become a part of life for most people living in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if this is the first time you are thinking to enter into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest charged by 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 lowest rates.
Make sure you study the small print carefully, especially on 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 understand 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 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 of 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). - 29970
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If you are thinking onchanging or getting a Credit Card, have a look at the free advice on our website on using Credit Cards wisely.
