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Advantages of a credit card

MostOld Plastic money (project365 - 17/365)

 

Advantages of a credit card

The Chinese are credited with coming up with numerous
inventions including gunpowder, umbrellas, chopsticks,
paper and paper money.

Lamentably, (from Chinese point of view) the honors of
coming up with plastic money went with early American
capitalists.

From the time John Biggins, the inventor of a first
bank issued card, had his first eureka moment in 1946,
credit cards have evolved to become one of the most
versatile ways of paying, and this is why. Once issued
with one, the need to carry around unsafe, dirty and
bulky cash is significantly diminished.

I say diminished because some small scale merchants
(who perhaps are scared of technology) will still
insist on being paid in cash. Further, credit cards
enables you to build up a credit history, but only if
you always pay on time.

In some countries such as UK, if you buy goods using a
credit card and the goods turn out to be faulty, they
are usually insured for a period of time, say two
months, and you can be indemnified even for total
loss.

Credit cards are safe, and even if gun-totting
miscreants help themselves to your wallet, you can
make hit back by simply calling the credit card
company and canceling the stolen card.

Another thing going for credit cards is that you can
keep track of your transactions, and it’s thus easy to
keep track of your expenditure. I could go on and on,
and whatever the doomsday prophets say, plastic money
is here to stay.



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Types Of Credit Cards & How to Choose

 

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.

You are welcome to link to this article page from your website, subscribe to and use the Article Feeds (RSS) on your website, as well as copy and paste this article as along as you keep this Publisher Bio box for copy rights purposes.

Read, subscribe, share on your favorite social websites & enjoy.

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Credit Cards Do’s and Don’ts & Loans for food

Credit Cards Do’s and Don’ts

There is a lot of truth in the advice that credit
cards are not a substitute for not having money. Every
time you use a credit card this should be the theme
replaying in your mind. And you would do good to
remember the following too.

Do’s

 

* Always plan for the purchases that you need and
those that you want. You need the essentials, and you
want everything else. The ability of making a
distinction might help you plan wisely.

* If caught up in financial difficulties, it’s always
good to talk to the issuer who might re-schedule your
payments. If you simply default, that only helps to
build up an unfavorable credit history and you might
find yourself being denied credit next time.

* Unless it is an emergency, staying within your
credit limits will help you a great deal. If you must
spend over the limit, ensure you are within the
manageable levels, say within 30 percent.

* And if your mails are flushed with more favorite
deals than you currently are enjoying, you may
approach your issuer for a better deal. They want to
retain you as their customer, so they will listen.

Don’ts

* Do not use your credit card to make house hold
purchases. Itís expensive in the long run

* Do not just pay the minimal amount. You will end up
paying exorbitant interest. The quicker you clear the
debt the better.

* Do not use the credit card to purchase things you
canít afford.

 

Loans for food

Imagine going to the bank to apply for a loan, and you
state that the purpose of the loan is to buy supper.

Unfazed, the banker very courteously tells you,
“That’s fine, just sign the form. And by the way, you
can take an additional amount for the new
Anheuser-Busch beer which I am sure you and your
friends will enjoy.”

The banker then whispers to you, “eeh, I know I am not
supposed to tell you this, but you will be charged 20
percent annually and 30 percent for late payments.”
“That is just great”, you say, and then take the money
and walk out.

Sounds absurd, yet that is what actually happens every
time one uses a credit card to buy household goods.

Experts say that if you don’t have the money to buy
your basic essentials, you won’t have it end-month.

Robin Holland of Equifax, a credit reference bureau,
concurs. If you don’t have the money to pay for an
item now, you probably won’t have it after the
credit-card bill arrives, he tells Equifax Website
(EFX – news – people).

One may then ask, for what purpose are the credit
cards? For Credit cards are very convenient when used
with maximum degree of circumspection.

Don’t use it for impulse buying, and before you enlist
for one, be sure to check out the minimum payment
credit-card calculator which will show you how much
you will end up paying if you pay only the minimum
amount every month.

 

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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.You are welcome to link to this article page from your website, subscribe to and use the Article Feeds (RSS) on your website, as well as copy and paste this article as along as you keep this Publisher Bio box for copy rights purposes.

Read, subscribe, share on your favorite social websites & enjoy.

.—




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The history of credit cards & Warning