Almost everyone over the age of consent (18 or 21) has or wants a credit card nowadays and they are taken in almost every establishment. There are three major kinds of credit card common 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 liberal on spending limits.
The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed 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 choice of payment means: you can either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with a finance charge.
The other major sort 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 carry annual charges. There is a wide variance in the terms and conditions for these cards.
The various sorts of credit cards present different options. Some are designed for individual consumers, while others are set up in ways that work best for small business requirements. To know what sort of credit card fits your needs, you should review 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 on all the credit cards you are interested in. While the rate will not remain fixed for ever, it's always better for beginners to go for the one charging the lowest rates.
Read the fine 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 are applied.
Decide which spending limit is most 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 enough accepted to cater for 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 allows you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period).
The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed 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 choice of payment means: you can either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with a finance charge.
The other major sort 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 carry annual charges. There is a wide variance in the terms and conditions for these cards.
The various sorts of credit cards present different options. Some are designed for individual consumers, while others are set up in ways that work best for small business requirements. To know what sort of credit card fits your needs, you should review 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 on all the credit cards you are interested in. While the rate will not remain fixed for ever, it's always better for beginners to go for the one charging the lowest rates.
Read the fine 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 are applied.
Decide which spending limit is most 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 enough accepted to cater for 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 allows you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period).
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If you are thinking aboutchanging or applying for a Credit Card, check out the free advice on our website about using Credit Cards wisely.
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