Types Of Credit cards

Credit cards are ubiquitous in our lives. There are
three main types of credit cards that are common in
America.

They are travel and entertainment cards such as
American Express or Diners Card. These have to be paid
in full at the end of the month and are liberal on
spending limits.

The second major cards are the bank cards such as
Master Cards, Visa, GM, and Ford cards sponsored
mainly by the banks. The bank defines spending limits,
which in the bank parlance, is known as the credit
lines, and each offers different terms and conditions.

Banks offer a choice of payment methods, either pay
the balance in full with no interest or pay a minimum
part or some part of the balance with a finance
charge.

The other major type of card is the retail store cards
such as Sears, J.C. Penney, Shell or Mobil. These
cards, known in some countries (the ones from gas
companies) as fuel cards are only accepted in specific
countries and usually do not have annual fees. There
is a wide disparity in the terms and conditions for
the cards.

Different types of credit cards offer several
different options, depending on what your needs are.
Some are geared toward individual consumers, while
others are set up in ways that work best for small
business needs. To know what type of credit card fits
your needs, you should review a few of your options.

 

 

How to choose a credit card

Credit cards have become a part of life for most
people living in the western countries. Itís becoming
increasingly impossible to avoid them, especially for
business men. So if it is the first time you are
seeking to enter into the world of plastic money, here
are some of the basic things you should look out for.

* First, compare the interest chargeable for 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
lower rates.

* Read the fine print, especially on the other charges
that may be charged on you, 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 limit is appropriate for a person of
your income. Also the fewer credit cards you have, the
better placed you are to track your spending.

* Compare the services and other features such as the
cash back incentives, or warranties, rebates and the
like.

* Check whether the card is widely accepted to enable
you to pay for your needs.

You will do yourself a favor by familiarizing yourself
with the following terms.

* Annual Percentage Rate. This is the measure of the
yearly cost of credit.

* Finance Charges. These are the total charges
involving the transaction. 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.

 

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Publisher Bio:

Nick Naggar, publisher, is a contributing editor at Roxy-Electronics.com, Roxy-Finance.com, Roxy-Health.com, Roxy-Publishing.com, and RoxyTech.com, among other sites, where you can read more articles about Arts, Business, Education, Family & Society, Finance, Health, Fitness & Nutrition, Pets & Animals, Sports, Recreation & Outdoors, and Technolgies.

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